Business
Interim results for six months ended 30 June 2023
Interim results for six months ended 30 June 2023.
About this update from London Security Plc
[{"type":"text","content":"\n\nLondon Security PLC\n \n(the \"Group\" or \"Company\")\n \nInterim results for the six months ended 30 June 2023\n \n \n \nChairman's statement\nJ.J. Murray, Chairman\nFinancial Highlights\n• Revenue £108.8m (2022: £88.6m)\n• Operating profit £13.7m (2022: £10.9m)\n• Earnings per share 81.0p (2022: 68.3p)\n \nTrading\nThe financial highlights illustrate that the Group's revenue increased by £20.2 million (22.8%) to £108.8 million.\nOperating profit increased by £2.8 million (25.7%) to £13.7 million. This increase is partly attributed to the Group being able to recruit more direct staff. This enabled us to address delayed inspections in the period, in turn delivering a non-recurring benefit to the business' revenue and profit.\nThese results reflect the favourable movement in the Euro to Sterling average exchange rate, which has decreased from 1.19 to 1.14. If the 2023 results from the European subsidiaries had been translated at 2022 rates, revenue would have been £105.2 million instead of £108.8 million, which would have represented an increase of 18.7% on the prior year. On the same basis, operating profit would have been £13.1 million instead of £13.7 million, an increase of 20.2% compared to 2022.\nThe period under review also reflects the impact from upward input price pressures in all of the countries in which we operate. These increases are being driven by worldwide supply chain disruption and energy and wage inflation following the recovery from the coronavirus pandemic and the war in Ukraine. These supply price increases have been passed on to our customers where possible.\nAcquisitions\nIn the six months to the end of June, at an aggregate cost of £2.5 million, the Group acquired two companies in Belgium, and it strengthened its presence in Germany and the United Kingdom through the acquisition of service contracts which have been integrated into the Group's existing subsidiaries.\nIt remains a principal aim of the Group to grow through acquisition. Acquisitions are being sought throughout Europe and the Group will invest at the upper end of the price spectrum where an adequate return is envisaged by the Board.\nCash and financing\nThe Group's cash balance as at 30 June 2023 was £33.2 million. This is a decre...