Interim Results

London Security PLC
30 September 2004


LONDON SECURITY PLC

Interim Statement for the six months ended 30 June 2004

London Security plc is a leader in Europe's fire security industry. Each year we
provide fire protection for over 250,000 customers through our local presence in
the United Kingdom, Holland, Belgium, Switzerland and Austria.

Our services and products are commercialised through the well and long
established brands of Nu-Swift, Ansul, Total, Premier and Master. The unique
styling of our products makes them immediately recognisable to both the industry
and customers alike.

We aim to achieve the highest levels of service and product quality through
constant training of our employees to the most stringent servicing standards and
the development of the highest performance rated fire products. These activities
are performed whilst considering the preservation of the environment.

From the largest blue chip companies, to governments and private individuals,
our customers know that our name stands for integrity of service by the best
trained and qualified professionals with quality products that have achieved the
highest performance ratings.

Financial highlights of the results for the six months ended 30 June 2004
compared with the first half of 2003 are as follows:

•       Turnover at £26.5million is on the same level as the first half of 2003

•       Operating profit decreased from £5.4million to £4.5million

•       Earnings before interest, taxation, depreciation and amortisation ('
        EBITDA') decreased from £7.6million to £6.9million

•       Profit on ordinary activities before taxation decreased from £5.1
        million to £4.5million

•       Special dividend of 42p per share

Review

                                                       Six months to 30 June        Full Year
                                                            2004         2003            2003

                                                        £million     £million        £million

Turnover                                                    26.5         26.7            53.8
Operating profit                                             4.5          5.4            10.9
EBITDA                                                       6.9          7.6            15.5
Profit on ordinary activities before taxation                4.5          5.1            10.4



The changes in the results are primarily due to marketing cost increases and
slightly less buoyant market conditions in some European countries.  During 2002
and 2003 the company benefited from a number of market opportunities which are
now levelling.

In this period, we have incurred increased costs due to a sales and marketing
initiative.  The Group's cost structure has since been streamlined. Costs are
continually reviewed to maximise profitability.  Measures are also being taken
to ensure that our services are delivered to customers in the most cost
effective way.

Operating profit at 17% of turnover and EBITDA at 26% of turnover continue to be
industry leading.  We aim to continue to acquire companies in the fire and
security sectors to complement and build upon the organic growth demonstrated in
recent times.

The Group is actively developing new improved ranges of extinguishers and plans
to launch these products in the Autumn are on schedule.  As well as being better
extinguishers, we expect to achieve cost efficiencies from implementation of
these new ranges.

In September the Group created United Fire Alarms Limited, a company which
incorporates the Fire Alarm activity of all our companies in the United Kingdom.
  This will give the Group national coverage in the UK and the ability to supply
an improved service than was previously possible.

Dividends

On 8 July 2004 the Company announced a special dividend of 42p (2003 : 0.0p) per
ordinary share which was paid on 23 July 2004.  The Company had accumulated cash
comfortably beyond its short to medium term operational requirements and the
Board of Directors felt it was in the best interest of shareholders to
distribute a part of this surplus to shareholders.

An interim dividend of 3.0p (2003: 3.0p) per ordinary share is proposed, payable
on 12 November 2004 to shareholders on the register as at 15 October 2004.


J.G. Murray

Chairman

30 September 2004
                                                Unaudited              Unaudited              Audited
                                                 6 months               6 months           year ended
                                               to 30 June             to 30 June          31 December
                                                     2004                   2003                 2003
                                                    £'000                  £'000                £'000

Turnover                                           26,456                 26,695               53,760

Cost of sales                                     (4,049)                (4,219)              (8,201)
Gross profit                                       22,407                 22,476               45,559

Distribution costs                               (10,758)                (9,942)             (20,546)
Administrative expenses                           (7,108)                (7,172)             (14,086)
Operating profit                                    4,541                  5,362               10,927

EBITDA*                                             6,894                  7,638               15,510
Depreciation                                        (958)                  (864)              (1,838)
Amortisation of goodwill                          (1,395)                (1,412)              (2,745)
Operating profit                                    4,541                  5,362               10,927

Income from fixed asset investments                   112                    118                  117
Net interest payable and similar                    (128)                  (414)                (665)
charges
Profit on ordinary activities before taxation       4,525                  5,066               10,379
Taxation (Note 3)                                 (2,034)                (2,023)              (4,587)
Profit on ordinary activities after taxation        2,491                  3,043                5,792
Dividends                                         (6,513)                  (434)              (1,882)
Retained (loss)/profit                            (4,022)                  2,609                3,910


Basic earnings per ordinary share                   17.2p                  21.0p                40.0p
(Note 2)
Adjusted earnings per ordinary share (note 2)       26.8p                  30.8p                59.0p
Dividend per ordinary share                         45.0p                   3.0p                13.0p



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
                                                             2004                2003                2003
                                                            £'000               £'000               £'000

Fixed assets

Intangible assets                                          43,598              46,044              45,082
Tangible assets                                             7,578               7,684               7,791
Investments                                                    70                  70                  70
                                                           51,246              53,798              52,943

Current assets

Stocks                                                      3,574               3,821               3,643
Debtors                                                    12,342              11,408              11,666
Cash at bank and in hand                                   11,586              12,296              13,486
                                                           27,502              27,525              28,795

Creditors: due within one year
Finance debt                                              (4,032)             (3,781)             (4,161)
Other creditors                                          (19,222)            (14,682)            (15,232)
                                                         (23,254)            (18,463)            (19,393)
Net current assets                                          4,248               9,062               9,402

Total assets less current liabilities                      55,494              62,860              62,345

Creditors: due after more than one year
Finance debt                                              (6,057)            (10,158)             (8,100)
Provisions for liabilities and charges                    (1,862)             (1,761)             (1,841)

                                                          (7,919)            (11,919)             (9,941)
Net assets                                                 47,575              50,941              52,404


Capital and reserves

Called up share capital                                     1,447               1,449               1,447
Share premium                                              27,476              27,476              27,476
Capital redemption reserve                                    117                 115                 117
Merger reserve                                              2,033               2,033               2,033
Profit and loss account                                    16,502              19,868              21,331
Total equity shareholders' funds                           47,575              50,941              52,404



                                                      Unaudited           Unaudited           Audited
                                                       6 months            6 months        year ended
                                                     to 30 June          to 30 June       31 December
                                                           2004                2003              2003
                                                          £'000               £'000             £'000

Net cash inflow from operating activities                 4,572               7,375            14,295
Return on investments and servicing of finance
Interest received                                           112                  80               231
Interest paid                                             (272)               (379)             (694)
Dividends received                                          112                 118               117
Net cash outflow from return on investments
and servicing of finance                                   (48)               (181)             (346)
Taxation

Corporation tax paid                                    (1,913)             (1,700)           (3,696)
Capital expenditure

Payments to acquire intangible fixed assets                   -                (60)              (79)
Payments to acquire tangible fixed assets               (1,147)             (1,137)           (2,239)
Receipts from sales of tangible fixed assets                165                 165               237
Net cash outflow for capital expenditure                  (982)             (1,032)           (2,081)
Acquisitions and disposals
Payments to acquire subsidiary undertakings                   -                   -             (359)
Payment of deferred consideration on prior                    -                   -             (679)
year acquisitions
Cash acquired with subsidiary undertakings                    -                   -             (112)
Net cash outflow for acquisitions                             -                   -           (1,150)

Equity dividends paid to shareholders                   (1,446)               (724)           (1,159)
Net cash inflow before use of liquid
resources and financing                                     183               3,738             5,863
Financing
Purchase of own shares                                    (121)               (171)             (171)
New long-term loans                                           -                 237               600
Repayment of long-term loans                            (1,962)             (1,811)           (3,109)
Net cash outflow from financing                         (2,083)             (1,745)           (2,680)

(Decrease)/Increase in cash in the                      (1,900)               1,993             3,183
period


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 2004 is
unaudited and has been prepared on the basis of the accounting policies set out
in the Group's 2003 Report and Accounts. Comparative figures for the year ended
31 December 2003 have been extracted from the statutory accounts for the year
ended 31 December 2003 which 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 £2,491,000 (2003: £3,043,000) and on
14,488,218 (2003: 14,485,232) 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
                                                    2004                  2003               2003
                                                   £'000                 £'000              £'000

Profit on ordinary activities after                2,491                 3,043              5,792
taxation
Eliminate effect of:
     Amortisation of goodwill                      1,395                 1,412              2,745
Adjusted earnings                                  3,886                 4,455              8,537
Basic earnings per ordinary share                  17.2p                 21.0p              40.0p
Adjusted earnings per ordinary                     26.8p                 30.8p              59.0p
share



3. Taxation

The taxation charge for the period (45%) 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 2004                                                                               21,331
Retained loss for the period                                                                      (4,022)
Exchange adjustments                                                                                (686)
Purchase of own shares                                                                              (121)
As at 30 June 2004                                                                                 16,502


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