Interim Results

London Security PLC
30 September 2003



London Security plc

Interim Results for the six months ended 30 June 2003

Chairman's Statement

Financial highlights of the results for the six months ended 30 June 2003
compared with the first half of 2002 are as follows:

•       Turnover increased by 9% to £26.7million

•       Operating profit increased by 3% to £5.4million

•       EBITDA increased by 4% to £7.6million

•       Net gearing reduced from 10% at 31 December 2002 to 3%

•       Interim dividend increased by 50% to 3.0p

Review

                                          Six months to 30 June

                                2003         2002         2001         2000
                            £million     £million     £million     £million

Turnover                        26.7         24.5         22.2         19.0
Operating Profit                 5.4          5.2          4.2          2.4
EBITDA                           7.6          7.3          6.3          4.6



The results for the first six months of 2003 have been satisfactory despite the
challenging market conditions.  These results have benefited from the positive
impact of the companies acquired in 2002 (Asco, CFP Cavelle and HUG) and
exchange rate movements which have also impacted favourably.

More importantly we report that the integration of Asco into the Group is on
plan both operationally and financially.  The cost base has been reduced in 2003
through better purchasing of our raw materials and this is expected to impact on
the profit and loss account in the second half of the year.  The Group is also
actively developing new improved ranges of extinguishers and plans to launch
these products in the New Year are on schedule.

The company has obtained ISO 14001 certification in line with our previously
stated environmental policy.

As the table above illustrates, the Group has enjoyed sustained growth since
2000.  Operating profit at 20% of turnover and EBITDA at 28% of turnover are
exceptional results and far greater than those enjoyed by our competitors.
These figures illustrate our ability to manage service businesses and, as such,
it remains a principal aim of the Group to acquire companies in the fire and
security sectors to complement and build upon the organic growth demonstrated in
recent times.

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

Dividends

An interim dividend of 3.0p (2002: 2.0p) per ordinary share is proposed, payable
on 12 November 2003 to shareholders on the register as at 10 October 2003.

Prospects

The outlook for the second half of 2003 is cautiously optimistic.



J. G. Murray

Chairman

30 September 2003

                                                Unaudited              Unaudited               Audited
                                                 6 months               6 months            year ended
                                               to 30 June             to 30 June           31 December
                                                     2003                   2002                  2002
                                                    £'000                  £'000                 £'000
Turnover                                           26,695                 24,520                48,078
Cost of sales                                     (4,219)                (3,723)               (7,288)

Gross profit                                       22,476                 20,797                40,790
Distribution costs                                (9,942)                (8,893)              (18,079)
Administrative expenses                           (7,172)                (6,679)              (13,433)
Operating profit                                    5,362                  5,225                 9,278

EBITDA**                                            7,638                  7,319                13,694
Depreciation                                        (864)                  (780)               (1,735)
Amortisation of goodwill                          (1,412)                (1,314)               (2,681)
Operating profit                                    5,362                  5,225                 9,278

Income from fixed asset investments                   118                    109                   111
Net interest payable and others                     (414)                  (577)                 (946)
Profit on ordinary activities before                5,066                  4,757                 8,443
taxation

Taxation                                          (2,023)                (2,076)               (3,840)
Profit on ordinary activities after taxation        3,043                  2,681                 4,603

Dividends                                           (434)                  (290)               (1,014)
Retained profit                                     2,609                  2,391                 3,589



Basic earnings per ordinary share                   21.0p                  18.5p                 31.8p

Adjusted earnings per ordinary share (note 2)       30.8p                  27.6p                 50.3p
Dividend per ordinary share                          3.0p                   2.0p                  7.0p

All of the above results arose from continuing operations
** Earnings Before Interest, Taxation, Depreciation and Amortisation


                                                   Unaudited          Unaudited            Audited
                                                       as at              as at              as at
                                                     30 June            30 June        31 December
                                                        2003               2002               2002
                                                       £'000              £'000              £'000
Fixed assets
Intangible assets                                     46,044             46,576             47,128
Tangible assets                                        7,684              6,807              7,363
Investments                                               70                 70                 70
                                                      53,798             53,453             54,561
Current assets
Stocks                                                 3,821              3,284              3,425
Debtors                                               11,408             10,504              9,740
Cash at bank and in hand                              12,296             11,253             10,303
                                                      27,525             25,041             23,468

Creditors: due within one year
Finance debt                                         (3,781)            (3,179)            (3,503)
Other creditors                                     (14,682)           (15,461)           (13,383)
                                                    (18,463)           (18,640)           (16,886)
Net current assets                                     9,062              6,401              6,582

Total assets less current liabilities                 62,860             59,854             61,143

Creditors: due after more than one year
Finance debt                                        (10,158)           (11,864)           (11,255)
Provisions for liabilities and charges               (1,761)            (1,755)            (1,907)

                                                    (11,919)           (13,619)           (13,162)
Net assets                                            50,941             46,235             47,981

Capital and reserves
Called up share capital                                1,449              1,449              1,449
Share premium                                         27,476             27,476             27,476
Capital redemption reserve                               115                115                115
Merger reserve                                         2,033              2,033              2,033
Profit and loss account                               19,868             15,162             16,908
Total equity shareholders' funds                      50,941             46,235             47,981




                                                  Unaudited            Unaudited              Audited
                                                   6 months             6 months           year ended
                                                 to 30 June           to 30 June          31 December
                                                       2003                 2002                 2002
                                                      £'000                £'000                £'000
Net cash inflow from operating                        7,505                8,084               14,980
activities

Return on investments and servicing of finance
Interest received                                        80                   78                  204
Interest paid                                         (379)                (522)                (889)
Dividends received                                      118                  109                  111
Net cash outflow from return on investments
and servicing of finance                              (181)                (335)                (574)

Taxation
Corporation tax  paid                               (1,700)                (769)              (4,034)

Capital expenditure
Payments to acquire intangible fixed                  (190)                    -                 (52)
assets
Payments to acquire tangible fixed                  (1,137)              (1,402)              (3,343)
assets
Receipts from sales of tangible fixed                   165                   88                  845
assets
Net cash outflow for capital expenditure            (1,162)              (1,314)              (2,550)

Acquisitions and disposals
Payments to acquire subsidiary undertakings               -                 (66)              (2,714)
Cash acquired with subsidiary undertakings                -                    -                  331
Net cash outflow for acquisitions                         -                 (66)              (2,383)

Equity dividends paid to shareholders                 (724)                 (44)                (870)

Net cash inflow before use of liquid resources
and financing                                         3,738                5,556                4,569
Financing

Purchase of own shares                                (171)                    -                    -
New long term loans                                     237                    -                1,350
Repayment of long term loans                        (1,811)              (1,595)              (2,908)
Net cash outflow from financing                     (1,745)              (1,595)              (1,558)

Increase in cash and equivalents                      1,993                3,961                3,011


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 2003 is
unaudited and has been prepared on the basis of the accounting policies set out
in the Group's 2002 Report and Accounts.  Statutory accounts for the year ended
31 December 2002 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 £3,043,000 (2002: £2,681,000) and on
14,485,232 (2002: 14,487,316) 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           Six months           Year ended
                                                  to 30 June           to 30 June          31 December
                                                        2003                 2002                 2002
                                                       £'000                £'000                £'000
Profit on ordinary activities after                    3,043                2,681                4,603
taxation
Eliminate effect of:
     Amortisation of goodwill                          1,412                1,314                2,681
Adjusted earnings                                      4,455                3,995                7,284
Basic earnings per ordinary share                      21.0p                18.5p                31.8p
Adjusted earnings per ordinary share                   30.8p                27.6p                50.3p



3. Taxation

The taxation charge for the period (39.9%) 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 2003                                                                                16,908
Retained profit for the period                                                                       2,609
Exchange adjustments                                                                                   522
Purchase of own shares                                                                               (171)
As at 30 June 2003                                                                                  19,868







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