Annual-Report-and-Accounts-2024

London Security plc

Annual Report and Accounts 2024

London Security plc

Customer focus.

We continually strive to offer the highest quality of service and products to our valued customers. We employ the best trained and qualified engineers with quality products that have achieved the highest performance ratings to companies, governments or private individuals.

Our services and products are commercialised through long-established brands.

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. Our employees are trained to the most stringent servicing standards and we develop the highest performance-rated fire products. These activities are performed whilst considering the preservation of the environment.

Highlights

IN THIS REPORT

Strategic report

01 Financial highlights

01 Our European Group brands

02 Chairman's statement

04 Financial review

06 Strategic report

Corporate governance

19 Directors and Company Advisers

26 Report of the Directors

1. Directors' remuneration report

   Financial statements

2. Independent auditor's report

1. Consolidated income statement

2. Consolidated statement of comprehensive income

3. Consolidated statement of changes in equity

4. Consolidated statement of financial position

5. Consolidated statement of cash flows

6. Notes to the financial statements

71 Parent Company balance sheet

72 Parent Company statement of changes in equity

73 Notes to the Parent Company financial statements

77 Notice of Annual General Meeting

80 Group companies

OUR EUROPEAN GROUP BRANDS

®

London Security plc continues to deliver industry-leading profit margins since acquiring the Ansul and Nu-Swift businesses. The challenges for the future are to continue to grow through acquisition and organically and to build upon our competitive advantage of being a complete fire protection solution provider.

Chairman's statement

J-J. Murray, Chairman

Trading review

The financial highlights illustrate that the Group's revenue increased by £1.0 million (0.5%) to £220.7 million and operating profit decreased by £1.8 million (5.7%) to £29.8 million. These results reflect:

• The movement in the Euro to Sterling average exchange rate, which had an adverse effect of £4.6 million on reported revenue and £0.8 million on operating profit. A more detailed review of this year's performance is given in the Financial Review and the Strategic Report.

• 2024 was a period of consolidation for the Group following the 16.2% increase in operating profit that was enjoyed in 2023. Whilst operating profit has decreased versus 2023, this still represents a 9.2% increase on 2022.

• The core servicing business remains very consistent with a slight fall in special projects, the instance of which is unpredictable.

• Although inflation has moderated since last year, we continue to experience upward input price pressures. These supply price increases have been passed on to our customers where possible. Business confidence is low and is depressing growth and reducing our

customers' appetite to invest. All the countries in which we operate are experiencing low or no growth.

Acquisitions

It remains a principal aim of the Group to grow through acquisition. Acquisitions are being sought throughout Europe and the Group will invest at prices where an adequate return is envisaged by the Board. In the year under review the Group completed the acquisition of service contracts from smaller well-established businesses for integration into the Group's existing subsidiaries and has grown its presence in Austria, the Netherlands, the United Kingdom, Belgium, Luxembourg, France and Germany.

Management and staff

FINANCIAL HIGHLIGHTS

Financial highlights of the audited results for the year ended 31 December 2024 compared with the year ended 31 December 2023 are as follows:

• revenue of £220.7 million (2023: £219.7 million);

• operating profit of £29.7 million (2023: £31.6 million);

• profit for the year of £21.7 million (2023: £23.3 million);

• cash of £29.6 million (2023: £32.7 million);

• earnings per share for the year of £1.77 (2023: £1.90); and

• a dividend per share of £1.22 (2023: £1.24).

2024 was a year in which the staff performed well and, on behalf of the shareholders, I would like to express thanks and appreciation for their contribution. The Group recognises that we can only achieve our aims with talented and dedicated colleagues who provide outstanding customer service in every area of the business.

Dividends

An interim dividend in respect of 2024 of £0.80 per ordinary share was paid to shareholders on 29 November 2024. The Board is recommending the payment of a final dividend in respect of 2024 of £0.42 per ordinary share. This would

be paid on 11 July 2025 to shareholders on the register on 13 June 2025 with the shares marked ex-dividend on 12 June 2025.

Future prospects

The markets in which we operate are entering what is likely to be a period of low growth. The London Security Group, however, has a healthy balance sheet, strong cash reserves and a track record for good cash generation. The Board therefore considers that the Group is well placed to weather

any downturn. We will also continue to invest in our future and the Group plans to continue to grow through acquisitions.

Annual General Meeting

The Annual General Meeting ("AGM") will be held at 2 Jubilee Way, Elland, West Yorkshire HX5 9DY, on 25 June 2025 at

11.30 am. The Company confirms that shareholders are able to attend in person should they wish to do so. However, we strongly encourage shareholders to vote on all resolutions by completing the enclosed form of proxy for use at that Meeting, which you are requested to return in accordance with the instructions on the form.

Chairman

9 May 2025

Financial review

Consolidated Income Statement

The Group's revenue increased by £1.0 million (0.5%) to £220.7 million. Operating profit decreased by £1.9 million to £29.7 million (6.0%). These results include the adverse movement in the Euro to Sterling average exchange rate, which has increased from 1.15 to 1.18. If the 2024 results from the European subsidiaries had been translated at 2023 rates, revenue would have been £225.3 million instead of £220.7 million, which would represent an increase of 2.5% not 0.5% on the prior year. On the same basis, operating profit would have been £30.5 million instead of £29.7 million, a decrease of 3.5% not 6.0% compared to 2023.

2024 was a period of consolidation for the Group following the 16.2% increase in operating profit that was enjoyed in 2023. Whilst operating profit has decreased versus 2023, this still represents a 9.2% increase on 2022.

Inflation continued to have a major impact on the Group's operations in 2024. Inflation was initially driven by two world events. Firstly, the worldwide recovery from Covid-19 resulted in a surge in shipping costs which drove increased supply prices for us and our suppliers. Secondly, the destabilising effect of the war in Ukraine led to increased energy and food prices. This resulted in a high inflation shock across all our markets which continued into 2024. While we initially absorbed these costs we have had to continue to increase our prices accordingly.

Central banks in our market reacted to high inflation with successive interest rate increases to address this. Whilst it is arguable whether this was the correct response given the cause of inflation, especially in energy, what this has done is

dampen demand and depress growth. As a result, several of the countries in which we operate have entered or are close to recession. This will have an adverse effect on our customers' investment plans. Recent small declines in central bank interest rates have failed to revive business confidence.

Our acquisition teams were successful in finalising the purchase of service contracts to be serviced through our existing subsidiaries. This has allowed us to increase our presence in Germany, Austria, the Netherlands, France, Luxembourg, the United Kingdom and Belgium.

The Group's effective income tax rate of 27% is above the UK corporation tax rate of 25%. This reflects the level of disallowable expenses, principally service contract amortisation.

Consolidated Statement of Financial Position

IN SUMMARY

• Our acquisitive strategy continues to add to the Group's service pool.

• The fire security market is experiencing increased competition.

• We are experiencing cost increases across all our purchases which is putting downward pressure on margins.

• We will continue to pass on appropriate price increases to our customers.

• We will continue to concentrate on the highest levels of customer service.

In reviewing the Statement of Financial Position there has been a material increase in the level of trade and other receivables. This has been driven by the increase in trade receivables from

£37.4 million to £42.8 million. A new IT system was implemented during the year which had a transitory impact on our debt collection processes. The level of trade receivables increased during quarters 3 and 4. Management have worked through the difficulties that arose and are focused on collecting these debts in 2025. Experience is showing that while the debts have aged their level of recoverability is high.

The Group continues to place great importance on maintaining a healthy cash balance. The Group ended the year with cash of

£29.6 million (2023: £32.7 million). The Group's total borrowings at the year end were £0.2 million (2023: £0.5 million).

Other Statement of Financial Position headings have not shown significant movements year on year.

Consolidated Statement of Cash Flows

The Group continues to demonstrate consistently profitable performance and strong cash conversion. However, while revenue is £1.0 million higher than the prior year there has been a decline in cash generated from operations from £38.3 million to £33.9 million. This is principally due to the increase in trade receivables already commented on.

Treasury management and policy

The Board considers foreign currency translation exposure and interest rates to be the main potential treasury risks. Treasury policies and guidelines are authorised and reviewed by the Board.

Segmental reporting

The chief operating decision maker ("CODM") for the London Security Group has been identified as the executive Board, as ultimately this function is responsible for the allocation of resources and assessing the performance of the Group's

business units. The internal reporting provided to the CODM is a combination of consolidated financial information and detailed analysis by brand.

The management information on which the CODM makes its decisions has been reviewed and is deemed to be the consolidated result for the Group. The Group's companies in

different European countries operate under similar economic and political conditions with no different significant risks associated with any particular area and no exchange control risks and the Group's operations are managed on a Pan-European basis with close operational relationships between subsidiary companies. In addition, the nature of products, services, production and distribution is consistent across the region.

Accordingly, the Directors have concluded that under IFRS 8 the Group operates in a single geographical and market segment and that there is a single operating segment for which financial information is regularly reviewed by the CODM.

Key risks and uncertainties

The Group's key risks and uncertainties are discussed in the Strategic Report.

London Security plc Annual Report and Accounts 2024

STRATEGIC REPORT 05

Strategic report

Principal activities

London Security plc is an investment holding company and its Board co-ordinates the Group's activities. The principal activities of the Group are the manufacture, sale and rental of fire protection equipment and the provision of associated maintenance services.

Business model

The Group is a leader in Europe's fire security industry.

We provide fire protection through our local presence in the United Kingdom, Belgium, the Netherlands, Austria, France, Germany, Denmark and Luxembourg. More detail on our revenue streams can be found in the revenue recognition section of our accounting policies.

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

The Group aims to achieve the highest levels of service and product quality through continued training of our employees to the most stringent servicing standards and the development of the highest performance-rated fire

products. The Group continues to build on its reputation for service excellence and quality to develop a "safety solutions" business with a well-diversified and loyal customer base.

Business review and results

The Consolidated Income Statement shows a profit attributable to equity shareholders of the Parent Company for the year ended 31 December 2024 of £21.7 million (2023: £23.3 million). The Group's results are discussed in detail in the Financial Review. The Group paid dividends in the year of £15.0 million comprising a final dividend in

respect of the year ended 31 December 2023 of £0.42 per ordinary share and an interim dividend of £0.80 per ordinary share in respect of the year ended 31 December 2024. The Board is recommending the payment of a final dividend in respect of the year ended 31 December 2024 of £0.42 per ordinary share. The Group ended the year with net assets of

£155.0 million (2023: £152.2 million).

Key performance indicators

Given the straightforward nature of the business, the Company's Directors are of the opinion that the analysis of revenue, operating profit and earnings per share are the appropriate KPIs for an understanding of the development and performance of the business. The analysis of these KPIs is included in the Chairman's Statement and the Financial Review.

S172 statement

The Board believes that the presence and requirements of a longstanding controlling shareholder help focus the Group's strategy on long-term shareholder value creation. Decisions are taken bearing in mind the effect on long-term growth in revenue, operating profit and earnings per share.

Our employees are vital in delivering the highest levels of service in order to mitigate the downward pressure on prices in our market. We involve and listen to employees to maintain strong employee engagement and retain talented people. We have a number of employee representative groups across Europe to facilitate this. Investment in our workforce through ongoing training is seen as essential to keep up to date with evolving legislation and protect the business from competition.

The Directors recognise the need to foster business relationships with suppliers and customers. We aim to have an open, constructive and effective relationship with all suppliers, including site visits by our staff to ensure supply chain sustainability, responsible sourcing and supply chain resilience.

The Directors consider the impact of the Group's operations on the environment. In recent years many of our product innovations have been focused on limiting our environmental impact. We have a long list of accreditations, including

ISO 9001 and ISO 14001.

The interests of different stakeholders may not always be totally compatible. Therefore, the Group has to weigh up the needs and requirements of all stakeholders and attempt to find the right balance where decisions may affect more than one stakeholder. The Group remains ethical in its dealings with stakeholders and attempts to keep stakeholders informed of relevant business decisions. The likely consequences of all our long-term decision making is part of our ongoing management process.

The culture of the business is one of support and inclusiveness with the aim of ensuring our business is sustainable in the long run. We aim to be an equal

opportunities employer and deal fairly with all stakeholders. Robust procedures are in place for conflict resolution.

In accordance with the AIM Rules for Companies, the Board formally adopted the Quoted Companies Alliance Corporate Governance Code 2023 (the "Code") on 1 September 2024. To maintain a reputation for high standards of business conduct, our website, https://www.londonsecurity.org, and the Directors and Company Advisers section of this Annual Report explain our approach to the ten principles of the Code.

Principal risks and uncertainties

Supply chain disruption. Many of our components are sourced from China and supply of product from the Far East is subject to disruption by rebels in Yemen targeting shipping in the Red Sea. This has led most shipping companies to divert around Africa rather than risk attack on the way to the Suez Canal. This is leading to inflation in the cost of shipping and lengthening lead times. The Group has mitigated the consequences of this by continuing to hold high stock levels which has ensured we always have capacity to supply the full range of products to our engineers. Recent developments

in the conflict in Gaza may end these attacks. The Group is starting to diversify supply of components away from the Far East. Importantly, we maintained our in-house manufacture of finished product utilising factories in the United Kingdom and Belgium.

Inflation. Various factors beyond our control have caused increased prices across all our inputs. While we initially chose to absorb these increases, it became clear that these were not transitory pressures. We have responded by increasing our sales prices and remaining in dialogue with our customers to explain our decision. Inflation has reduced during the latter half of 2024 but remains above central bank targets. The forecast from most commentators is for inflation to fall to central bank targets of 2.0% in 2025.

Recruitment. We have experienced some difficulty in recruitment since the ending of the pandemic in common with many other sectors. There is resistance to return to previous work patterns at previous wage levels. This, coupled with the inflation present in all the countries in which we operate, has resulted in higher wages. Engineering resource is monitored at a subsidiary level by local management

to ensure there are sufficient engineers to service their customers. The Group is prepared to pay the remuneration necessary to recruit and train the appropriate calibre

of employee.

Business confidence. There are challenging economic conditions in Europe. All European countries are expected to endure a period of negative or minimal growth during 2025 which will reduce demand. However, the nature of our products and services should insulate the Group from the worst of this. The experience of the 2008 financial crisis and the Covid-19 pandemic in 2020 and 2021 showed this may

not be too serious. We are seeing a reduced willingness of our customers to invest in upgrading or installing new systems.

The Group has a strong capital base and liquidity position to weather these conditions.

Increased competition. The fire protection market in Europe is highly competitive and there are minimal barriers to entry to those smaller businesses offering a lower price service. However, the Group has built the reputation of its operating subsidiaries on quality by providing service levels recognised as being the best in the industry. The Group is able to offer its customers the certainty of supply and compliance with all relevant safety legislation at an appropriate price. We invest in our workforce through ongoing training to keep up to date with legislation.

Growth through acquisition is an important strategy of the Group. A potential risk is not identifying acquisitions that fail to meet the investment case or would be disruptive to integrate into the Group. This risk is mitigated by formal review by the investment committee prior to an offer being made. Following acquisition, the integration team implements the integration plan and monitors performance against that plan.

Introduction

The increasing impact of climate change on global markets necessitates greater transparency and forward-looking financial planning. This report marks our second year of compliance with the Climate-related Financial Disclosure ("CFD") regulations, reinforcing our commitment to assessing and disclosing climate-related risks and opportunities.

Recognising and addressing these implications remains a strategic priority for our organisation.

The CFD framework comprises eight disclosures across governance, strategy, risk management and metrics and targets, covering both physical and transitional climate-related risks. It guides our reporting on governance structures, strategic adaptation, risk management and climate-related performance. By integrating CFD principles, we enhance resilience, capitalise on emerging opportunities and reinforce transparency to support informed decision making and

long-term sustainability.

In 2024, we strengthened our climate-related disclosures and processes by establishing our climate risk committee ("CRC") to oversee the identification, assessment and management of climate-related risks and opportunities. This has reinforced our governance and risk management framework, ensuring a structured approach. Newly identified risks and opportunities

are now incorporated into scenario analysis, further enhancing strategic decision making and resilience.

Governance

As noted above, in 2024 we established our CRC. Comprising senior managers, a Board member and the Company Secretary, the CRC ensures comprehensive oversight of business operations across the UK and mainland Europe.

The Board has granted the CRC the authority and resources to fulfil its responsibilities.

The CRC oversees climate risk strategy, risk identification, mitigation measures, regulatory compliance, stakeholder engagement and climate policy monitoring within the Group's broader risk management framework.

Climate risk committee structure and reporting

The CRC operates at the Group level, although it still incorporates input from individual subsidiaries with members representing different business units. The Company Secretary, Richard Pollard, was appointed to lead our climate change policy initiatives in 2023 and was appointed Chair of the CRC in 2024, ensuring Board-level oversight alongside Board member Xavier Mignolet.

The CRC reports directly to the Board, providing biannual updates and making recommendations on climate-related matters. While it did not attend Board meetings in 2024, its first update will be presented in May 2025. The CRC also collaborates with the audit committee to align risk management processes across corporate governance structures.

UK

Site and general risks and opportunities

Europe

Site and general risks and opportunities

Climate-related risk and opportunity management With guidance from external sustainability partner McGrady Clarke, the CRC has defined its roles and responsibilities and developed a structured methodology for identifying and

assessing climate-related risks and opportunities, ensuring their consideration alongside other business risks at Group level. These risks were integrated into the Group's overall risk management framework and discussed at two Board meetings in 2024 alongside other business risks.

While risks and opportunities have been identified, active management has not yet commenced, and no mitigation measures were implemented in 2024. Active management of identified risks and opportunities is expected to commence in the future, with regional leads expected to become involved to hold responsibility for the monitoring and management of individual climate-related risks.

Committee meetings and future plans

The CRC held two meetings in 2024, in November and December, focusing on committee establishment as well as creating a climate risk identification and assessment framework. Moving forward, the CRC is expected to meet every four months. The meetings will involve reviewing our previously and newly identified climate-related risks and opportunities. As the CRC matures, it will transition towards

active management and mitigation strategies, strengthening the organisation's resilience to climate-related risks while capitalising on emerging opportunities.

Risk identification and management

Climate-related risks are now treated in the same manner as other business risks; they have been integrated into the Group risk register and overall risk management framework.

Climate-related risks are discussed alongside other business risks during biannual Board meetings. At present, there

are no formal systems or processes in place for managing climate-related risks. However, from 2025 onwards, the CRC will begin developing and implementing risk management measures as part of its future objectives, working towards formal climate risk mitigation and adaptation. As a newly established committee, the CRC's risk and opportunity identification process will continue to evolve, refining its approach over time. At present, there is no fixed review cycle for the identification process, though it will be regularly assessed as the committee matures.

The newly established CRC is responsible for identifying, assessing and monitoring climate-related risks and opportunities at the Group level, with findings reported to the Board. This is a separate process from other business

risks. Climate-related risks are not assessed at the subsidiary level. Despite this, the CRC receives input from individual subsidiaries as its members represent the different business units, ensuring that Group-level decisions reflect the broader business landscape. Going forward, the CRC will monitor risks during quarterly meetings, with significant findings reported biannually to the Board. The Board has granted the CRC with the necessary authority and resources to fulfil these responsibilities, with ongoing training provided as needed.

We plan to fully review our climate scenario analysis at least every three years, in line with BEIS guidance. Any significant updates to the scenario analysis outside of the scheduled review will be documented accordingly.

Climate risk and opportunity identification process In preparation for the 2023 climate-related financial disclosures, we collaborated with McGrady Clarke, our external sustainability consultant, to develop a structured

climate risk identification process. This resulted in a refined list of key climate-related risks and opportunities, assessed based on likelihood and severity, and evaluated using qualitative scenario analysis.

In 2024, the establishment of the CRC further developed this process to support ongoing risk identification

and assessment. Between meetings, CRC members independently identified additional risks and opportunities, assessing business impact, likelihood and severity. These findings were then reviewed and refined collaboratively in the second meeting, leading to the incorporation of two new climate-related risks and one new opportunity into our disclosures.

This structured approach will be used going forward to ensure the continuous identification and assessment of climate-related risks and opportunities, with significant findings reported to the Board biannually.

Strategy

Time horizons

Our identified climate-related risks and opportunities are considered across all relevant time horizons, rather than time horizons used for budgeting, strategy or planning purposes. We have maintained consistency from previous reporting years in our approach to defining time horizons for the assessment of climate-related risks and opportunities, as outlined in the table below.

Time horizon Period

Our short-term horizon, spanning the present until 2030, reflects the urgency of climate-related impacts and policy developments. This timeframe enables us to adapt our strategies in response to evolving environmental and regulatory landscapes, ensuring agility in addressing immediate risks and opportunities.

The medium-term horizon, from 2031 to 2050, has been selected to align with critical climate milestones, including the widely recognised target of achieving net zero emissions by 2050. This period provides a structured framework

for assessing the implications of climate policies and commitments, allowing us to monitor progress and refine our strategic direction towards a low-carbon future.

By defining our long-term horizon as 2051 to 2080, we can evaluate the enduring challenges and impacts of climate change, aligning with key policies and scientific projections. This extended timeframe offers valuable insights into potential long-term environmental, societal and economic shifts, supporting our sustainable planning and adaptation strategies for the future.

Climate scenarios

To assess key climate-related risks and opportunities, we have continued to apply the Shared Socioeconomic

Pathways (SSPs) from the IPCC's Sixth Assessment Report. Developed by a collaboration between global experts, these pathways form the basis of our qualitative scenario analysis, enabling us to evaluate a range of potential climate and socioeconomic futures.

Using a narrative-based approach, our qualitative scenario analysis explores climate-related risks under different scenarios, each shaped by distinct socioeconomic pathways. This helps assess the potential impact and magnitude of climate-related risks and opportunities for London Security plc, supporting comprehensive risk preparedness and strategic planning.

SSP1 'Sustainability'

SSP1 envisions a rapid and significant reduction in global greenhouse gas emissions, aligning with the Paris Agreement's goal of limiting global warming to below 2°C above pre-industrial levels. This scenario assumes the implementation of stringent climate policies alongside

enhanced co-operation at local, national and international levels, fostering a transition towards a more sustainable and low-carbon global economy.

SSP3 'Regional Rivalry'

SSP3 depicts a future characterised by rising nationalism, regional conflicts and environmental degradation, leading to a moderate increase in greenhouse gas emissions. Limited

international co-operation, uneven technological progress and inconsistent climate action result in fragmented responses

to global challenges. Resource disputes intensify, potentially weakening environmental regulations and increasing reliance on fossil fuels, thereby reducing investment in renewable energy and hindering progress towards sustainability.

SSP5 'Fossil-Fuelled Development'

SSP5 represents an extreme scenario of rapid economic expansion driven by fossil fuel consumption, leading to high greenhouse gas emissions and significant environmental degradation. In this pathway, support for sustainability initiatives declines, with urban growth and fossil fuel dependency taking precedence over environmental protection. It assumes a reliance on advanced technologies to counteract the severe consequences of climate change, despite the continued prioritisation of economic and industrial development over climate action.

Disclosure of assumptions and estimations

Our qualitative scenario analysis is underpinned by the SSPs, providing a structured framework to assess climate change impacts across economic, environmental and societal trends. These scenarios support the evaluation of climate-related risks and opportunities over different time horizons, informing strategic planning and risk management.

Given the complex and evolving nature of climate change, projections are subject to uncertainties, including regional variations and organisational responses. We currently assume the Group's global presence will remain largely unchanged. As industry best practices evolve, assumptions and estimates will naturally converge and be periodically reassessed to reflect changing climate scenarios, risks and market conditions.

Climate-related risks and opportunities

The most significant climate-related risks and opportunities, along with their expected impacts across different climate scenarios, are summarised in the tables below. Each risk has been categorised as either physical (acute and chronic) or transitional (policy and legal, technology, market, and reputation).

We conducted a qualitative scenario analysis of material climate-related risks and opportunities for the 2023 financial year and will continue to review this at least every three years to provide up to date and relevant information. Alternatively, scenario analysis may be reviewed sooner if significant changes occur in our business operations or underlying assumptions. We will continue to report any changes to the scenario analysis in between the full reviews.

The selected risks and opportunities reflect key climate considerations relevant to our operations; however, it is important to acknowledge that not all material climate-related risks and opportunities are captured here. Those included have been identified based on their potential impact and likelihood, ensuring a broad representation of risk categories.

At present, there are no identified actual impacts arising from the climate-related risks or opportunities outlined in this disclosure, aside from increased sustainability reporting obligations, such as compliance with the Climate-related Financial Disclosure (CFD) requirements.

I

Changes to our climate-related risks and opportunities and scenario analysis

The climate-related risk "enhanced emissions reporting obligations" has been revised to "enhanced sustainability reporting obligations" to reflect a broader scope of regulatory requirements. This change accounts for emerging reporting frameworks, such as the Corporate Sustainability Reporting Directive (CSRD), which is expected to potentially impact our organisation, particularly within the EU countries in which we operate.

Since its inception, the climate risk committee has actively reviewed climate-related risks and opportunities. As a result, two climate-related risks and one climate-related opportunity have been identified and incorporated into our disclosures.

These updates enhance our understanding of climate-related risks and opportunities, ensuring alignment with regulatory developments and evolving market conditions.

Climate-related risks

Climate-related

Risk Scenario Time horizon

2030 2050 2080

Climate-related

Risk Scenario Time horizon

2030 2050 2080

Climate-related risks continued

Climate-related

Risk Scenario Time horizon

2030 2050 2080

Climate-related opportunities

Climate-related

Opportunity Scenario Time horizon

2030 2050 2080

Climate-related opportunities continued

Climate-related

Opportunity Scenario Time horizon

2030 2050 2080

Resilience of our business model

Following our assessment, we believe our business model and strategy remain resilient to identified climate-related risks, with no current impacts from these risks or opportunities. Ongoing monitoring of climate-related metrics enables us to track potential future impacts and maintain control over operations. In the short term, we will remain adaptable to evolving environmental policies and continue exploring mitigation strategies. Longer-term horizons provide scope to implement adaptation measures and address rising material costs and physical climate risks.

As sustainability becomes further embedded in our business, we expect to enhance resilience against climate-related risks, while capitalising on climate-related opportunities. While no mitigation measures are currently in place or planned, the CRC, established in 2024, will begin implementing formal climate risk mitigation and adaptation strategies moving forward. As the CRC matures, it will transition towards active management, strengthening resilience and maximising emerging opportunities.

Metrics and targets

Global carbon footprint assessment results

Since 2022, we have partnered with McGrady Clarke to calculate our global carbon footprint across the Group in alignment with Greenhouse Gas (GHG) Protocol guidelines. The results of the carbon footprint assessments for both reporting years are presented in the table below.

Category Metric

2023 2024

tCO2e % of total tCO2e % of total

Category Metric

2023 2024

tCO2e % of total tCO2e % of total

Total Scope 1-3 16,922.98 100.00% 18,370.66 100.00%

* Scope 3 categories 13, 14 and 15 are not displayed above as they are not relevant to our operations.

Methodology summary for carbon footprint assessment

The 2023 and 2024 carbon footprint assessments encompass our global operations, following the operational control approach. Scope 1 and 2 emissions were calculated using primary data on gas, heating fuel and electricity consumption, applying DEFRA 2023 and 2024 emissions factors, supplemented by Ember emissions factors where required for overseas electricity usage. Where primary utility consumption data was unavailable, estimations were made using CIBSE floor area benchmarking for typical practice. Scope 1 transport and onsite fuel emissions were calculated based on fuel purchase data, while Scope 2 emissions for electric vehicles were derived from mileage data, both using DEFRA emissions factors.

Scope 3 emissions were calculated using either an activity-based or spend-based methodology, depending on data availability, including factors such as weight, distance, material type and expenditure. Data sources included delivery logs, expenditure records, commuting surveys and waste reports. Emissions were calculated using emissions factor sources such as DEFRA 2023/2024 conversion factors, or alternatively the UK government's DEFRA Table 13 (2019) for emissions per monetary value.

Where assumptions were required, such as waste disposal methods or material composition in spend-based datasets, they were informed by industry knowledge and relevant personnel input. In cases of incomplete datasets, pro rata extrapolation was applied to ensure full coverage of the 12 month reporting period. Where spend-based emissions factors did not correspond with the reporting year, they were adjusted for inflation using Bank of England conversion rates. Looking ahead, we aim to further enhance data quality and improve the accuracy of our carbon footprint reporting.

Key performance metrics and associated targets

We actively track a range of metrics related to our emissions data, alongside the assessment of physical and transitional climate-related risks and opportunities, to measure progress towards our targets. The table below provides an overview of these metrics, including the methodologies applied and our current progress against set objectives.

Risk/opportunity

Metric FY 2022 FY 2023 FY 2024 covered

Target relating

to metric Target year Methodology Progress

Future developments

Low growth looks set to continue in 2025. However, we continue to believe that the Group's well-established business model and solid financials provide a strong foundation to weather this challenge and to provide profitable growth and long-term shareholder returns.

Signed on behalf of the Board

Chairman

9 May 2025

London Security plc Annual Report and Accounts 2024

Directors and Company Advisers

CORPORATE GOVERNANCE 19

Jean-Jacques Murray 58

Chairman

Jean-Jacques Murray was appointed Chairman in June 2024 and was

Vice-Chairman from February 2007. He graduated with a BA in Finance from Los Angeles Pepperdine University in 1988 and obtained

his master's degree in 1990. His responsibility is the control and strategic direction of the Group. He is the Executive Chairman of Andrews Sykes.

Xavier Mignolet 60

Managing Director

Xavier Mignolet joined the Group in 1995. He graduated with a

master's degree in Commercial and Financial Sciences at HEC in Liège in 1987 and started his career in financial audit for PwC in Brussels. He is a Non-Executive Director of Andrews Sykes.

Emmanuel Sebag 57

Executive Director

Emmanuel Sebag has responsibility for the review and supervision of Group operations. He graduated with a master's degree in

Industrial Administration from Carnegie-Mellon University in 1991. He is a Non-Executive Director of Andrews Sykes.

Henry Shouler 85

(resigned 5 August 2024)

Andrew Kitchingman 60

(appointed 29 August 2024)

Andrew Kitchingman is the Chairman of Mpac Group plc and a Non-Executive Director of Andrews Sykes Group plc.

He also has a number of other directorships in private companies.

The majority of the Board have been actively involved in the fire protection industry for more than 20 years. Financial expertise

is provided to the Board by the Company Secretary and external advisers.

If he feels it appropriate, the Independent Non-Executive Director is encouraged to seek external professional advice at the Group's expense.

Jean-Pierre Murray 57

Non-Executive Vice-Chairman Jean-Pierre Murray was appointed Non-Executive Vice-Chairman

in February 2024 and was a Non-Executive Director from

August 2008. He graduated from Los Angeles Pepperdine University in 1990 with a BA in Finance and gained his master's degree in 1993. He is the Non-Executive Vice-Chairman of Andrews Sykes and Director of several private companies.

Marie-Claire Leon 61 Non-Executive Director Marie-Claire Leon graduated from California State University

in 1988 with a bachelor's degree in Business Administration,

with a particular focus on marketing, new venture and small business management. She

is a Non-Executive Director of Andrews Sykes.

Corporate Governance Statement

In accordance with the AIM Rules for Companies the Board formally adopted the Quoted Companies Alliance Corporate Governance Code 2023 (the "Code") on 1 September 2024. The Code is based around ten broad principles of good corporate governance. The correct application of the Code requires London Security plc to apply these ten principles and to publish certain related disclosures on its website and in its Annual Report, including a clear explanation of how the Code has been applied.

The explanation below provides a summary of how London Security plc applies the ten principles of the Code.

By way of background to the Board's application of the Code, London Security plc is 80% owned by EOI Fire SARL ("EOI"). In the absence of a substantial third party shareholder, it is considered unnecessary and, to a large degree unrealistic,

to separate the roles of Chairman and Chief Executive.

All the Executive Directors are connected with EOI, as are J-P. Murray and M-C. Leon (Non-Executive Directors), and are therefore not considered to be independent.

To limit the effect of the majority shareholder, the Parent Company and EOI entered into a relationship agreement dated 10 December 1999 in which EOI provided certain assurances to the Parent Company with regard to its relationship with the Parent Company. The agreement confirms that the business and affairs of the Parent Company shall be managed by the Board in accordance with the Parent Company's Memorandum and Articles of Association and with applicable laws and all relevant statutory provisions for the benefit of the shareholders as a whole. Any transactions or other relationships between any member of the EOI Group and the Parent Company would be at arm's length and on a normal commercial basis. The Directors declare their interest and take no part in decisions where appropriate.

Whilst the ownership structure has undoubtedly influenced its governance, in particular with regard to Board membership, corporate governance should be for the benefit of all shareholders and one of the Board's responsibilities is to ensure the imposition and maintenance of an appropriate corporate governance framework. Following the resignation of Henry Shouler the Board has appointed Andrew Kitchingman as Independent Non-Executive Director and as Chairman

of the audit committee and a member of the remuneration committee. Andrew was appointed to provide independent oversight of the Company and its performance and is available for shareholders to contact if they have concerns that may not have been fully resolved by the Board.

Membership of the Board, both Executive and Non-Executive, has been very stable over recent years and this, along

with the presence of a longstanding, substantive majority shareholder has provided the stable base and established management methodology from which London Security plc has been able to deliver an excellent track record of financial performance and shareholder returns and to be focused on the medium to long term.

Code principles and application

1. Establish a purpose, strategy and business model which promote long-term value for shareholders

   London Security plc is an investment holding company and its Board co-ordinates the Group's activities. The principal activities of the Group are the manufacture, sale and rental of fire protection equipment and the provision of associated maintenance services.

   The Group is a leader in Europe's fire security industry. We provide fire protection through our local presence in the United Kingdom, Belgium, the Netherlands, Austria, France, Germany, Denmark and Luxembourg. More detail on our revenue streams can be found in the revenue recognition section of our accounting policies.

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

   The Group aims to achieve the highest levels of service and product quality through continued training of our

   employees to the most stringent servicing standards and the development of the highest performance-rated fire products.

   The Group's activities are highly skilled and reliant upon the skills, dedication and passion of all our employees and contractors who are expected to meet our clients' demand

   for quality and timely delivery. The Group continues to build on its reputation for service excellence and quality to develop a "safety solutions" business with a well-diversified and loyal customer base.

   Shareholder value in the medium to long term is intended to be delivered by driving operational excellence across the

   Group and growing within selected markets and geographies.

   The Board believes that the presence and requirements of a longstanding controlling shareholder helps focus the

   Company's strategy on long-term shareholder value creation.

   The Group's strategy and business model are discussed, agreed and reviewed on a regular basis by the Board and are set out each year in the Company's Annual Report with

   updates provided in the full year and half year financial results announcements. The Group's financial statements can be found in the Investors section of the Company's website.

   The presence and requirements of a longstanding majority shareholder have resulted in a strategy with the key aim of creating long-term shareholder value.

2. Promote a corporate culture that is based on ethical values and behaviours

   The culture of the business is one of support and inclusiveness with the aim of ensuring our business is sustainable in the long run. We aim to be an equal

   opportunities employer and deal fairly with all stakeholders. Robust procedures are in place for conflict resolution.

   The Group has a long-established heritage and reputation based on sound ethical values and the Board considers this to be of great ongoing value. Many companies within our market sector envy our reputation and we frequently optimise this commercially and by attracting new staff. Our employees are vital in delivering the highest levels of service in order to mitigate the downward pressure on prices in our

   market. We involve and listen to employees to maintain strong employee engagement and retain talented people. We have a number of employee representative groups across Europe to facilitate this.

   The Directors recognise the need to foster business relationships with suppliers and customers. We aim to have an open, constructive and effective relationship with all suppliers, including site visits by our staff to ensure supply chain sustainability, responsible sourcing and supply chain resilience.

   The Directors consider the impact of the Group's operations on the environment. In recent years many of our product innovations have been focused on limiting our environmental impact. We have a long list of accreditations, including ISO 9001 and ISO 14001.

   The interests of different stakeholders may not always be totally compatible. Therefore, the Group has to weigh up the needs and requirements of all stakeholders and attempt to find the right balance where decisions may affect more than one stakeholder. The Group remains ethical in its dealings with stakeholders and attempts to keep stakeholders informed of relevant business decisions. The likely consequences of all our long-term decision making is part of our ongoing management process.

   We pride ourselves in providing our staff with a good working environment within a strong ethical culture. The Group's HR policies are regularly reviewed by the operations team, are provided to all staff on commencement of employment and are available at all times. The Group has a large number of long-serving staff members, many with 30 years plus service, which is a testament to our working culture.

3. Seek to understand and meet shareholder needs and expectations

   As outlined in the Corporate Governance Statement, London Security plc has a controlling 80.44% shareholder which has a number of representatives on the Board.

   The Company monitors its share register and ensures that dialogue is entered into with other shareholders as appropriate. The Executive Chairman and the Managing Director respond to all enquiries made of them by shareholders and Andrew Kitchingman, the Independent Non-Executive Director, not only provides an independent view of the Group but is also a point of shareholder access which is independent of the executive team or

   the majority shareholder.

   The Board recognises the importance of communication with the Company's shareholders. The corporate website, https://www.londonsecurity.org, aims to provide shareholders with the required information to fully understand the business. The Annual Report and the Half Year Accounts and related announcements are made available promptly on the Company's website in accordance with the AIM Rules.

   All shareholders are invited to attend and will receive at least 21 clear days' notice of the Company's Annual General Meeting ("AGM"). The notice includes details of the resolutions to be proposed and voted on at the AGM. The AGM

   includes a question and answer session and Directors make themselves available to meet with shareholders following the Meeting.

4. Take into account wider stakeholder interests, including social and environmental responsibilities and their implications for long-term success

   The Group has identified the following stakeholders:

   • Customers

     We service our customers to the highest relevant standards to ensure customers are safe and comply with legislation. We actively participate in trade associations which lobby for high levels of fire protection industry standards and drive positive change in our industry.

   • Employees

The Group recognises the need to ensure effective communications with employees to encourage involvement in the Group's performance and achieve a common awareness of factors affecting that performance. Policies and procedures have been developed to suit the needs

of each subsidiary undertaking, which take into account factors such as numbers employed and location, and include newsletters and communication meetings.

We engage in appropriate liaison with employees and employment bodies such as unions and workers' councils.

Code principles and application continued

1. Take into account wider stakeholder interests, including social and environmental responsibilities and their implications for long-term success continued

   • Employment of disabled persons

     The Group is committed to employment policies that follow best practice based on equal opportunities for all employees and offer appropriate training and career

     development for disabled staff. If members of staff become disabled, the Group continues employment wherever possible and arranges retraining if required.

   • Suppliers

     Where appropriate, the Group asks for method statements and proof that suppliers comply with ethical environmental and other quality standards.

     The Group agrees payment terms with all suppliers when they enter into binding purchase contracts. The Group seeks to abide by the payment terms agreed with suppliers whenever it is satisfied that the supplier has provided the goods or services in accordance with the agreed terms and conditions. The Group does not follow any standard

     or external code which deals specifically with the payment of suppliers.

     We actively engage with suppliers in order to develop and source market-leading fire protection products.

     The Group has considered sustainability.

     The escalating effects of climate change on global markets demand increased transparency and anticipatory planning in our financial reporting. We are fulfilling our reporting obligations as mandated by the Companies Act Climate-related Financial Disclosure (CFD) regulation. Our aim is to provide our stakeholders with a detailed evaluation of the

     potential risks and opportunities climate change poses to our operations. As an international organisation, acknowledging and addressing the effects of climate change on our business is essential.

     The CFD framework is comprised of eight specific disclosure mandates, centred around the four areas of governance, strategy, risk management, and metrics and targets. This framework covers the disclosure of both physical and transition risks linked to climate change, guiding us in reporting governance structures, strategic responses, risk management processes, and climate-related metrics and targets. By implementing CFD practices, we can strengthen our defences against climate-related risks whilst harnessing climate-related opportunities, fostering transparency with our stakeholders. This approach not only supports informed decision making but also promotes sustainable practices.

     In 2024, we strengthened climate-related risk management by establishing our climate risk committee (CRC). Comprising senior managers, a Board member and the Company Secretary, the CRC ensures comprehensive oversight of business operations across the UK and mainland Europe.

     The Board has granted the CRC the authority and resources to fulfil its responsibilities. The CRC oversees climate risk strategy, risk identification, mitigation measures, regulatory compliance, stakeholder engagement and climate policy monitoring within the Group's broader risk management framework.

     The CRC operates at the Group level, although it still incorporates input from individual subsidiaries with members representing different business units. The Company Secretary, Richard Pollard, was appointed to lead our climate change policy initiatives in 2023 and was appointed Chair of the CRC in 2024, ensuring Board-level oversight alongside Board member Xavier Mignolet.

     The CRC reports directly to the Board, providing biannual updates and making climate-related recommendations on climate-related matters. While it did not attend Board meetings in 2024, its first update will be presented in May

     2025. The CRC also collaborates with the audit committee to align risk management processes across corporate governance structures.

2. Embed effective risk management, internal controls and assurance activities, considering both opportunities and threats, throughout the organisation

   The Board has overall responsibility for the oversight of risk as well as maintaining a robust risk management framework and internal control system with the Audit Committee reviewing its effectiveness. Our risk management framework is designed to ensure the Board can clearly identify our risks and ensure these risks are being managed and mitigated effectively. The Group's principal risks, and plans to mitigate these risks, are identified and set out in the Company's Annual Report within the Strategic Report section.

   The Directors have considered the effectiveness of the Group's system of internal controls. The Directors have continued to report upon internal financial controls in accordance with the ICAEW's guidance "Internal Control and Financial Reporting" (the Rutteman guidance), and to report non-compliance with "Internal Control: Guidance for Directors on the Combined Code" (the Turnbull guidance).

   Key elements of the Group's system of internal financial controls are as follows:

   • Control environment - the Directors have put in place an organisational structure with clearly defined lines of

     responsibility and delegation of authority. This is reinforced by the direct supervision of the Executive Directors supported by appropriate policy statements.

   • Risk management - the Executive Directors are responsible for identifying risks facing the business and for putting in place procedures to mitigate and monitor risks. Risks are assessed and monitored at Board level on an ongoing basis, as well as during the annual business planning process.

     • Information systems - the Group has a comprehensive system of financial reporting. The annual budget is approved by the Board. Actual results and variances compared with the budget are reported to the

       Board monthly, supported by detailed management commentaries. Revised forecasts for the period are prepared and reported to the Board each quarter.

     • Control procedures - policies and procedures manuals are maintained at all significant business locations. In particular, there are clearly defined policies for capital expenditure including appropriate authorisation levels. Larger capital projects and major investments and divestment decisions require Board approval.

     • Monitoring systems - internal controls are monitored by management review.

       The Board routinely consider the effectiveness of the Company's system of internal controls. The Board has established an Audit Committee. The Audit Committee considers risk and internal control as a fundamental part of its responsibilities. The Directors confirm that they have reviewed the effectiveness of the system of risk management and internal control.

       The Board reports upon internal financial controls in accordance with the ICAEW's guidance "Internal Control and Financial Reporting".

3. Establish and maintain the Board as a well-functioning, balanced team led by the Chair

   The Board consists of six members, led by Jean-Jacques Murray, the Chairman. He manages and provides leadership to the Board to ensure that it is effective in its task of setting and implementing the Company's direction and strategy.

   The Chairman is also responsible for ensuring the Board and broader management framework is established, operates effectively and is compliant with relevant statutory codes and Company policies and for the regular assessment of

   the effectiveness of the Board and its committees. Due to the relatively small size of the Group and the nature of its

   businesses, the Executive Directors are more directly involved in the day-to-day activities than would be the case in a larger more diversified organisation.

   The Board is composed of a mixture of three Executive and three Non-Executive members in order to provide the division of responsibilities and balance which are

   considered appropriate to the Parent Company's individual circumstances. The Non-Executive Directors have particular responsibility in ensuring that the strategies proposed by executive management are fully challenged. The majority of the Board has been actively involved in the fire protection industry for more than 20 years.

   The Group and Parent Company are 80% owned by EOI Fire SARL ("EOI"). In the absence of a substantial third party shareholder, it is considered unnecessary

   and, to a large degree unrealistic, to separate the roles of Chairman and Chief Executive. All the Executive Directors are connected with EOI, as are J-P. Murray and M-C. Leon (Non-Executive Directors), and are therefore not considered to be independent. Andrew Kitchingman is recognised as the Independent Non-Executive Director.

   A schedule is maintained of matters specifically reserved for decision by the full Board, which includes matters of business strategy, business acquisitions, business disposals, approval of budgets and approval of financial statements. Interim meetings or appropriate sub-committees are established when decisions are required between scheduled meetings.

   All Directors have access to the Company Secretary who is responsible to the Board for ensuring that all applicable procedures and regulations are complied with. Each Director has the right to take independent professional advice in connection with his or her duties at the Parent Company's expense.

   The Board meets on two occasions each year. All Directors receive a pre-meeting briefing package and post meeting minutes and appropriate attachments. As a number of the Board's Directors are based overseas, it is not appropriate for all Directors to attend all meetings. Where a Director cannot attend, they can give their contributions in advance to an attending Director or the Company Secretary and relay any comments concerning the Board minutes before they are adopted. Should there be anything that requires further discussion, an all-parties telephone Board meeting is convened.

   All Directors receive appropriate monthly management information and have the opportunity to discuss this with the Chairman or any member of his team or the Board.

   In addition, Board approval is sought for all material acquisitions or any activities that are of material importance to the Group. Due to the small size of the Board and close involvement of the majority shareholder, the Directors have no current intentions to appoint another Independent Non-Executive Director.

   The Non-Executive Directors provide oversight and scrutiny of the performance of the executive team to ensure that

   the Company's key strategic objectives are met, as well as representing the shareholders of the Company. None of the Non-Executive Directors participate in any performance related remuneration/share option schemes.

   Annually all Directors will resign and stand for re-election.

   Code principles and application continued

4. Ensure that between them the Directors have the necessary up-to-date experience, skills and capabilities

   The Board is considered to comprise individuals with a good blend of relevant experience in the Company's sector, and the financial and public markets, and with the necessary experience and strategic and operational skills required to drive the Group forward.

   The Directors' biographies and skill sets are detailed in the Annual Report and the Directors section of the Company's website.

   Each Director keeps up to date with their specialist experience and knowledge by following relevant information and publications. From time to time this is supported by the Company's advisers and specialist consultants. All Directors have access to the Company Secretary who is responsible to the Board for ensuring that all applicable procedures and regulations are complied with. Each Director has the right to take independent professional advice in connection with his or her duties at the Parent Company's expense.

   The Board is supported by two standing committees. Both committees have written constitutions and terms of reference.

   The remuneration committee comprises Andrew Kitchingman and Jean-Jacques Murray. The committee is chaired by Andrew Kitchingman. The remuneration committee reviews the performance of Executive Directors and sets the scale and structure of their remuneration and the basis of their service agreements with due regard to the interests of

   the shareholders. No Director is permitted to participate in decisions concerning his own remuneration. Details of Directors' remuneration are set out in the Directors' Remuneration Report.

   The audit committee currently comprises Andrew Kitchingman and Jean-Jacques Murray. Andrew Kitchingman is independent of management and EOI Fire SARL. The committee is chaired by Andrew Kitchingman The audit committee is responsible for ensuring that the financial performance of the Group is properly monitored, controlled and reported on. It meets regularly and meets the auditor

   to discuss the audit approach and the results of the audit. It considers and ensures the auditor's independence.

   The audit committee considers the need to introduce an internal audit function each year. After taking into

   consideration the current size and complexity of the Group, the committee believes that it would not be cost effective to have an internal audit function and the committee feels that sufficient comfort is obtained through the scope and quality of management's ongoing monitoring of risks.

   Due to the small size of the Board, the Directors consider that a nomination committee need not be established.

   On an annual basis, following the Annual General Meeting, the Board reviews the performance of its two committees.

5. Evaluate Board performance based on clear and relevant objectives, seeking continuous improvement

   The Board is measured primarily with reference to Group's financial performance and the suitability of the Group

   to deliver strong results in the future. In recent years the financial performance of the Group has been strong which has encouraged the Board to believe that its membership is appropriate. Given the straightforward nature of the business, the Company's Directors are of the opinion that the analysis of revenue, operating profit and earnings per share are the appropriate KPIs for an understanding of the

   development and performance of the business. The analysis of these KPIs is included in the Chairman's Statement and the Financial Review.

   The Board also considers that the stability of its membership over recent years has been a major contributor to the Company's success.

   The Chairman evaluates the Board's performance informally on a regular basis and formally at least twice per year.

6. Establish a remuneration policy which is supportive of long-term value creation and the Company's purpose, strategy and culture

   The Company's remuneration policy is to provide a core level of reward for the completion of Directors' duties, set at a level that allows us to attract and retain employees of the calibre required to drive the Company's success. There is no maximum salary limit. When considering salary levels, the

   Remuneration Committee will consider the specific nature and responsibilities of the role and the capabilities and experience of the individual.

   The Remuneration Committee meets at least once a year to review the performance of the Directors and set the scale and structure of their remuneration and the basis of their service agreements with due regard to the interests of the shareholders. The Remuneration Committee comprises Jean-Jacques Murray (Chairman) and Andrew Kitchingman (Independent Non-Executive Director). Details of the Directors' remuneration are set out in the Directors' Remuneration Report.

   The Remuneration Report is subject to a shareholder vote at the AGM.

7. Communicate how the Company is governed and is performing by maintaining a dialogue with shareholders and other key stakeholders

During 2024 the Board completed a gap analysis against the new 2023 QCA Code and has updated its Corporate

Governance Statement. A new independent Director, Andrew Kitchingman, has been appointed following the decision by Henry Shouler to retire in August 2024.

The Company reports on its financial performance and updates on its corporate governance at least two times each year, at the half year and full year financial results. The financial results are also communicated to the stock market via RNS announcements.

These reports and announcements are available in the Investors section of the Company's website. Copies

of previous years' reports since 2002 are also on the Company's website.

The Board pays particular attention to the votes cast by the shareholders at the AGM. In the event that a significant proportion (>20% including proxies) of independent votes are cast against a resolution at a General Meeting of the

Company, the Board intends, on a timely basis, to explain any action it has taken or will take as a result of that vote.

COMPANY INFORMATION

Company advisers

Company Secretary and registered office

Richard Pollard Premier House 2 Jubilee Way Elland

West Yorkshire HX5 9DY

Registered number 00053417

Chartered accountants and statutory independent auditor

Grant Thornton UK LLP No.1 Whitehall Riverside Leeds LS1 4BN

Registrars

MUFG Corporate Markets

Central Square

29 Wellington Street Leeds LS1 4DL

Stockbroker and nominated adviser Zeus Capital Limited

82 King Street Manchester M2 4WQ

Report of the Directors

The Directors present their report and the audited Group and Parent Company financial statements for the year ended 31 December 2024. Future developments in the business and dividends paid and proposed are discussed in the Strategic Report. The Group's financial risk management policy is discussed in the Financial Review and note 3 to

the Financial Statements.

Directors

The Directors of the Parent Company, all of whom served during the whole of the year ended 31 December 2024 unless otherwise indicated, and up to the date of signing the Group and Parent Company financial statements, were:

Executive Directors

J-J. Murray, X. Mignolet and E. Sebag.

Non-Executive Directors

J-P. Murray and M-C. Leon.

Independent Non-Executive Director

H. Shouler (resigned 5 August 2024) and A. Kitchingman (appointed 29 August 2024).

In line with the Corporate Governance Statement all Directors retire and, being eligible, offer themselves for re-election at the Annual General Meeting.

Brief biographical details of the Directors are set out on page 19.

Directors' liability insurance

The Parent Company has maintained a Directors' qualifying third party indemnity policy throughout the financial year and up to the date of signing the financial statements. Neither the Company's indemnity nor insurance provide cover in the event that a Director is proved to have acted fraudulently

or dishonestly. No claims have been made under either the indemnity or insurance policy.

Substantial shareholdings

At 9 May 2025, the Parent Company had been notified of the following interests of 3% or more in its share capital:

Insofar as it is aware, the Parent Company has no institutional shareholders.

J-J. Murray, J-P. Murray and M-C. Leon are Directors of London Security plc as well as Tristar Fire Corp.

Corporate culture and ethical values

The Group has a long-established heritage and reputation based on sound ethical values and the Board considers this to be of great ongoing value. Many companies within our market sector envy our reputation and we frequently optimise this commercially and by attracting new staff.

We have a long list of accreditations, including ISO 9001 and ISO 14001.

We pride ourselves on providing our staff with a good working environment within a strong ethical culture. The local staff handbooks are regularly reviewed by the senior operations teams and are provided to all staff on commencement of employment and are available at all times via a Company intranet site. The Group has a large number of long-serving staff members, many with 30 years' plus service, which is a testament to our working culture.

Health, safety and the environment

The maintenance and improvement of working standards to safeguard the health and wellbeing of staff and customers alike is a continuing priority. Health and Safety Officers are appointed at each Group location and they receive periodic training to keep abreast of both legislative requirements and technological advances. It is Group policy to operate in a reasonable manner with regard to the environment.

Employment of disabled persons

The Group is committed to employment policies that follow best practice based on equal opportunities for all employees and offer appropriate training and career development

for disabled staff. If members of staff become disabled, the Group continues employment wherever possible and arranges retraining if required.

Employee involvement

The Group recognises the need to ensure effective communications with employees to encourage involvement in the Group's performance and achieve a common awareness of factors affecting that performance. Policies and procedures have been developed to suit the needs of each subsidiary undertaking, which take into account factors such as numbers employed and location and include newsletters

and communication meetings.

Payment to suppliers

The Parent Company and Group agree payment terms with all suppliers when they enter into binding purchase contracts.

The Group seeks to abide by the payment terms agreed with suppliers whenever it is satisfied that the supplier has provided the goods or services in accordance with the agreed terms and conditions. The Group does not follow any standard or external code which deals specifically with the payment of suppliers.

At 31 December 2024, Group average creditor days were 40 days (2023: 35 days). The Parent Company had no trade creditors at either year end.

Stakeholder engagement

Also refer to the S172 Statement in the Strategic Report for further details.

Engaging with our stakeholders is key to our success and delivering our strategy. We have various mechanisms that enable the Board and management to understand and consider stakeholder views as part of their decision making. The key stakeholder groups and the ways in which we engage with them are set out below:

Customers - feedback from customers enables us to develop service plans and products that better meet their needs. Our engineers interact with customers on a daily basis. When customers need extra support our customer service team is available to offer assistance.

Suppliers - we work with suppliers worldwide which provide products that support us in delivering high-quality and

safe products for our customers. We aim to have an open, constructive and effective relationship with all suppliers including site visits by our staff.

Investors - we maintain regular dialogue with investors to communicate our strategy and performance in order to promote investor confidence and ensure our continued access to capital. We use our website to facilitate distribution of our results and news. There is an AGM open to all investors.

Employees - the Group recognises the need to ensure effective communications with employees to encourage involvement in the Group's performance and achieve a common awareness of factors affecting that performance. Policies and procedures have been developed to suit the needs of each subsidiary undertaking, which take into account factors such as numbers employed and location and include newsletters and communication meetings. We involve and listen to employees to maintain strong employee engagement and retain talented people. We consult employees or their representatives on a regular basis so that their views can be taken into account in making decisions which are likely to affect their interests. We have a number of employee representative groups across Europe to facilitate this. We encourage the involvement of our employees in the

performance of their Company by linking their remuneration to a series of incentive schemes.

Environment - the Group has a long-established heritage and reputation based on sound ethical values and the Board considers this to be of great ongoing value. In recent years, many of our product innovations have been focused on limiting our environmental impact. We have a long list of accreditations, including ISO 9001 and ISO 14001.

Streamlined Energy and Carbon Reporting

Under the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon) Regulations 2018, we are mandated to disclose our UK energy use and associated greenhouse gas (GHG) emissions. As a minimum, we are required to report the GHG emissions from fuel combustion, purchased energy and transport vehicles, under Streamlined Energy and Carbon Reporting (SECR). Additionally, the use of an intensity ratio and an outline of implemented efficiency measures are required under the SECR regulations.

To ensure a high level of transparency is achieved, robust and recognised reporting methods have been implemented. The reporting methodology involves usage of the Department for Environment, Food and Rural Affairs ("DEFRA") 2024 emissions factors to calculate and assess our UK operational emissions.

The SECR reporting period covers London Security plc's UK operations from 1 January 2024 to 31 December 2024 and our calculations are for the following scopes:

• Building-related energy - onsite fuel combustion (Scope 1), gas consumption (Scope 1) and purchased electricity consumption (Scope 2).

• Transportation - fuel combustion in company owned or operated vehicles (Scope 1) and electricity consumption in company electric vehicles (EVs) (Scope 2).

Calculation methodology

London Security plc's emissions have been assessed in accordance with the GHG Protocol Corporate Accounting and Reporting Standard and in line with DEFRA's 'Environmental reporting guidelines: including Streamlined Energy and Carbon Reporting Requirements'. The DEFRA 2024 emissions conversion factors were used to quantify the emissions associated with London Security plc's UK operations for

the specified reporting period. Where first hand energy consumption data was unavailable, data benchmarking and pro rata extrapolation methodologies have been used.

Organisational boundary

We have used the operational control approach.

Report of the Directors continued

Streamlined Energy and Carbon Reporting continued

Results

Reporting period

1 January 2023-

31 December 2023

1 January 2024-

31 December 2024

Area Metric UK and offshore UK and offshore

Intensity metrics

The chosen intensity ratios are emissions (tCO2e) per £ million turnover and emissions (tCO2e) per FTE employee. These were chosen as appropriate activity metrics considering the nature of our operations.

Energy efficiency measures

In 2024, London Security plc has been working to reduce the greenhouse gas emissions from its company fleet. The number of electric vehicles in the company fleet has been increased, enhancing the overall energy efficiency and reducing the GHG emissions from company fleet operations.

Donations

The Parent Company and the Group made no political donations during the year (2023: £Nil) and made charitable donations of £1,000 (2023: £1,000).

Future developments

Future developments are discussed in the Chairman's Statement and in the Strategic Report.

Post balance sheet events

Subsequent to the year end, the Group has completed the acquisition of further service contracts for a total of £270,000 (2023: £922,000).

Dividends

Dividends are discussed in the Chairman's Statement.

Purchase of own shares and authorities to issue shares During the year the Company purchased no shares (2023: 1,100 shares with a nominal value of 1 pence each at a total cost of £33,000).

As at 9 May 2025 there remained outstanding general authority for the Directors to purchase a further 500,000 ordinary shares. Resolution 12 is to be proposed at the Annual General Meeting to extend this authority until the 2026 Annual General Meeting.

The special business to be proposed at the 2025 Annual General Meeting also includes, in resolution 11, a special resolution to authorise the Directors to issue shares for cash, other than pro rata to existing shareholdings, in connection with any offer by way of rights not strictly in accordance with statutory pre-emption rights or otherwise, up to a maximum nominal value of £6,130, being 5% of the Parent Company's issued ordinary share capital. This authority will expire on the earlier of the date of next year's Annual General Meeting or 15 months after the passing of the resolution. The passing of that resolution is subject to resolution 10, an ordinary resolution, being approved to authorise the Directors to have the power to issue ordinary shares.