Interim Results

London Securities PLC
30 September 2002



LONDON SECURITIES PLC
Interim Statement for the six months ended 30 June 2002


CHAIRMAN'S STATEMENT

I am pleased to be able to report that our Group has continued to improve and
has produced excellent results for the first half of the 2002 financial year.
The highlights of the results for the six months ended 30 June 2002 compared
with the first half of 2001 are as follows.


•    Turnover increased by 10 % to                                £24.5 million
     
•    Earnings before interest, tax, depreciation and 
     amortisation (EBITDA) increased by 16% to                    £7.3 million

•    Adjusted earnings per share increased by 16% to                 27.6p

•    Net gearing reduced from 20% at 31 December 2001 to              9%

•    Interim dividend increased by 33% to                             2p


Trading review

The financial highlights above confirm the continuing success of our Group.  The
improvement has been achieved by constantly reviewing the Group's activities and
identifying opportunities for growth and development.  These opportunities arise
where we can improve fulfilment of customer need, or where we can help customers
meet the ever-changing demands of Health and Safety legislation.  Such
initiatives are important to grow the business but are not undertaken without
due consideration of the core  business which has, once again, produced steadily
improving turnover and profit.

In Belgium and Holland, we have created trained teams of engineers dedicated to
specific tasks aimed at developing particular markets and meeting higher
servicing standards required by regulatory bodies.  This greater focus has
resulted in an improved service to the customer and a corresponding increase in
revenue.

European operations have benefited from improvements in working practices
directed at visiting customers on a more timely basis.  This has resulted in
more customers being visited than in the corresponding period in 2001.

Export activity has also expanded, in particular in the Group's foam hardware
division.

In addition to organic growth, it remains a principal aim of the Company to grow
through acquisition in the fire and security sectors.  On 31 May 2002, we
acquired CFP Cavelle Ltd., a company specialising in the provision and
maintenance of fire alarm equipment within the UK.  We hope this acquisition
will be a stepping-stone for the Group to further expand our high quality
service principles into the fire detection industry.

In this period, the management and staff have again excelled and I would like to
express thanks and appreciation for their contribution.


Dividends

An interim dividend of 2.0p (2001: 1.5p) per ordinary share is proposed, payable
on 12 November 2002 to shareholders on the register as at 11 October 2002.


Prospects

The outlook for the second half of 2002 is encouraging.


J.G. Murray
Chairman

30th September 2002



LONDON SECURITIES PLC
Consolidated Profit and Loss Account
                                                         Unaudited       Unaudited                    Audited
                                                       6 months to     6 months to                 year ended
                                                      30 June 2002    30 June 2001           31 December 2001
                                                           £'000's         £'000's                    £'000's

Turnover                                                    24,520          22,297                     45,005
Cost of sales                                              (3,723)         (3,605)                    (6,756)

Gross profit                                                20,797          18,692                     38,249

Distribution costs                                         (8,893)         (8,545)                   (17,357)
Administrative expenses                                    (6,679)         (5,934)                   (12,348)

Operating profit                                             5,225           4,213                      8,544

EBITDA**                                                     7,319           6,319                     12,839

Depreciation                                                 (780)           (792)                    (1,637)
Amortisation of goodwill                                   (1,314)         (1,314)                    (2,658)

Operating profit                                             5,225           4,213                      8,544

Income from fixed asset investments                            109              91                         93
Net interest payable                                         (444)           (564)                      (983)
Exchange (loss)/gain on foreign currency                     (133)             112                         75

Profit on ordinary activities                                4,757           3,852                      7,729
        before taxation

Taxation                                                   (2,076)         (1,715)                    (3,205)

Profit on ordinary activities                                2,681           2,137                      4,524
        after taxation

Dividends                                                    (290)           (217)                      (797)

Retained profit                                              2,391           1,920                      3,727

Basic earnings per ordinary share                            18.5p           14.7p                      31.2p

Adjusted earnings per ordinary share(note 2)                 27.6p           23.7p                      49.5p

Dividend per ordinary share                                   2.0p            1.5p                       5.5p


All of the above results arose from continuing
operations

**Earnings Before Interest, Taxation, Depreciation and Amortisation



LONDON SECURITIES PLC
Consolidated Balance Sheet
                                                       Unaudited         Unaudited          Audited as
                                                   as at 30 June     as at 30 June      at 31 December
                                                            2002              2001                2001
                                                         £'000's           £'000's             £'000's

Fixed assets
Intangible assets                                         46,576            48,616              47,351
Tangible assets                                            6,807             5,680               6,068
Investments                                                   70                70                  70
                                                          53,453            54,366              53,489

Current assets
Stocks                                                     3,284             2,842               2,882
Debtors                                                   10,504             9,694               9,457
Cash at bank and in hand                                  11,253             7,037               7,292
                                                          25,041            19,573              19,631

Creditors: due within one year
Finance debt                                             (3,179)           (3,097)             (3,090)
Other creditors                                         (15,461)          (13,100)            (11,731)
                                                        (18,640)          (16,197)            (14,821)

Net current assets                                         6,401             3,376               4,810

Total assets less current liabilities                     59,854            57,742              58,299

Creditors: due after more than one year
Finance debt                                            (11,864)          (14,608)            (12,848)
Other creditors                                                -             (140)                   -
Provisions for liabilities & charges                     (1,755)           (1,650)             (1,657)
                                                        (13,619)          (16,398)            (14,505)

Net assets                                                46,235            41,344              43,794

Capital and reserves
Called up share capital                                    1,449             1,450               1,449
Share premium                                             27,476            27,476              27,476
Capital redemption reserve                                   115               114                 115
Merger reserve                                             2,033             2,033               2,033
Profit and loss account                                   15,162            10,271              12,721

Total equity shareholders' funds                          46,235            41,344              43,794



LONDON SECURITIES PLC
Consolidated Cash Flow Statement

                                                          Unaudited     Unaudited        Audited
                                                        6 months to   6 months to     year ended
                                                            30 June       30 June    31 December
                                                               2002          2001           2001
                                                            £'000's       £'000's        £'000's


Net cash inflow from operating activities                     8,084         6,430        11,803

Return on investments and servicing
   of finance
  Interest received                                              78           210           366
  Interest paid                                               (522)         (774)       (1,227)
  Dividends received                                            109            91            93
Net cash outflow from return on                               (335)         (473)         (768)
     investments and servicing of finance

Taxation
  Corporation tax (paid)/received                             (769)           929         (612)

Capital expenditure
 Payments to acquire intangible fixed assets                      -             -          (66)
 Payments to acquire tangible fixed assets                  (1,402)         (866)       (2,160)
 Receipts from sales of tangible fixed assets                    88            83           212
Net cash outflow for capital expenditure                    (1,314)         (783)       (2,014)


Acquisitions and disposals
 Payments to acquire subsidiary undertakings                   (66)             -             -

Equity dividends paid to shareholders                          (44)             -         (652)

Net cash inflow before use of
 liquid resources and financing                               5,556         6,103         7,757

Financing
 Purchase of own shares                                           -         (286)         (338)
 Repayment of long term loans                               (1,595)        (2090)       (3,437)
Net cash outflow from financing                             (1,595)       (2,376)       (3,775)


Increase in cash and equivalents                              3,961         3,727         3,982


NOTES

1.   NATURE OF INFORMATION
     
     The financial information contained in this interim statement does not
     constitute statutory accounts within the meaning of section 240 of the 
     Companies Act 1985.  The financial information for the six months ended 30 
     June 2002 is unaudited and has been prepared on the basis of the accounting 
     policies set out in the Group's 2001 Report and Accounts, with the 
     exception of new Accounting Standard FRS19 - Deferred Taxation, which is 
     applicable for the first time during the year ending 31 December 2002.  The 
     directors do not consider the new standard to have a significant impact on 
     the accounts for the current or previous years.  Statutory accounts for the 
     period ended 31 December 2001 have been delivered to the Registrar of 
     Companies.  The report of the auditors on those accounts was unqualified 
     and did not contain a statement under sections 237(2) or 237(3) of the 
     Companies Act 1985.

2.   EARNINGS PER SHARE
     
     The calculation of basic earnings per ordinary share is based on the profit 
     on ordinary activities after taxation of £2,681,000 (2001: £2,137,000) and 
     on 14,487,316 (2001: 14,516,040) ordinary shares, being the weighted 
     average number of ordinary shares in issue during the period.

     The calculation of adjusted earnings per ordinary share is based on the 
     above weighted average and on adjusted earnings which comprise:


                                     Six months to 30 June   Six months to 30 June         Year ended 31
                                                      2002                    2001         December 2001
                                                     £'000                   £'000                 £'000
Profit on ordinary activities
after taxation                                       2,681                   2,137                 4,524
                                                    
Eliminate effect of:
Amortisation of goodwill                             1,314                   1,314                 2,658

Adjusted earnings                                    3,995                   3,451                 7,182

Basic earnings per ordinary share                    18.5p                   14.7p                 31.2p
                                                    
Adjusted earnings per ordinary
share                                                27.6p                   23.7p                 49.5p
                                                     

3    TAXATION
     
     The taxation charge for the period (43.6%) appears high due principally to 
     the non-deductibility for taxation purposes of the amortisation of 
     goodwill.

4    PROFIT AND LOSS ACCOUNT

                                                   Profit and loss Account
                                                                     £'000

As at 1 January 2002                                                12,721

Retained profit for the period                                       2,391
Exchange adjustments
                                                                        50

As at 30 June 2002                                                  15,162




5    ACQUISITIONS
     
     On 31 May 2002, the group acquired the entire share capital of CFP Cavelle 
     Ltd. at a cost of £460,000, including costs.  The principal activity of the      
     company is the provision of fire alarm equipment and maintenance services.  
     The acquisition has been accounted for using the acquisition method of 
     accounting.

     The net assets acquired were as follows:
                                                          Book and fair value
                                                                        £'000
Net assets acquired:


Fixed Assets                                                                9
Stocks                                                                     14
Debtors                                                                    92
Cash at bank                                                               57
Creditors                                                                 (95)

Net assets acquired                                                        77
Goodwill arising on acquisition                                           383
                                                                          460
Purchase price

Satisfied by:

Cash                                                                      123
Vendor loan note                                                          337

Purchase price                                                            460


The company contributed £6,000 to the group's retained profit for the period.

Copies of this statement are being sent to all shareholders and are available to
the public from the company's registered office at Wistons Lane, Elland, West
Yorkshire HX5 9DS.


                      This information is provided by RNS
            The company news service from the London Stock Exchange