London Security plc Annual Report 2018

FY2018 Annual Report · London Security plc

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London Security plc

A leader in
Europe’s fire
security industry.

Annual Report and Accounts 2018

London
Security plc

Each year we provide fire protection for over 233,000 customers
through our local presence in the United Kingdom, Belgium, the
Netherlands, Austria, France, Germany, Denmark and Luxembourg.

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 blue chip
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.

01 Financial highlights

01 Our European group brands

02 Chairman’s statement

03 Financial review

05 Strategic report

06 Directors and Company advisers

08 Report of the Directors

11 Directors’ remuneration report

Independent auditors’ report

18 Consolidated statement of changes in equity

19 Consolidated statement of financial position

20 Consolidated statement of cash flows

21 Notes to the financial statements

Independent auditors’ report

49 Parent Company balance sheet

50 Statement of changes in equity

51 Notes to the Parent Company financial statements

55 Notice of Annual General Meeting

16 Consolidated income statement

58 Group companies

17 Consolidated statement of comprehensive income

Financial
highlights

Earnings per share
131.1p

Operating profit
£23.2m

Revenue
£137.7m

131.1p

116.7p

112.4p

100.1p

103.4p

111.8p

£23.2m

£21.7m

£20.9m

£18.5m

£19.7m

£20.0m

£137.7m

£125.9m

£114.8m

£101.2m

£100.9m

£101.4m

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

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.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Chairman’s statement

J.G. Murray, Chairman

Management and staff
2018 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.

The Group was saddened by the sad loss of
Michael Gailer following a short illness and is
grateful to him for his 19 years of service.

Dividends
A final dividend in respect of 2017 of £0.40 per
ordinary share was paid to shareholders on
5 July 2018. An interim dividend in respect of 2018
of £0.40 per ordinary share was paid to shareholders
on 30 November 2018. The Board is recommending
the payment of a final dividend in respect of 2018 of
£0.40 per ordinary share to be paid on 5 July 2019 to
shareholders on the register on 7 June 2019. The shares
will be marked ex-dividend on 6 June 2019.

Future prospects
The Group will continue to grow and consolidate the
fire protection industry with the finest customer care.

Annual General Meeting
The Annual General Meeting will be held at 2 Eaton
Gate, London SW1W 9BJ, on 18 June 2019 at 2 pm.
You will find enclosed a form of proxy for use at that
Meeting, which you are requested to complete and
return in accordance with the instructions on the
form. Your Directors look forward to meeting you
at that time.

J.G. Murray
Chairman
8 May 2019

Financial highlights
Financial highlights of the audited results for the year
ended 31 December 2018 compared with the year
ended 31 December 2017 are as follows:

• revenue of £137.7 million (2017: £125.9 million);

• EBITDA of £29.6 million (2017: £27.9 million);

• operating profit of £23.2 million (2017: £21.7 million);

• profit for the year of £16.2 million

(2017: £14.3 million); and

• a dividend per share of £0.80 (2017: £0.80).

Trading review
The financial highlights illustrate that the Group’s
revenue increased by £11.8 million (9.4%) to
£137.7 million and operating profit increased by
£1.5 million (6.9%) to £23.2 million. These results reflect:

• the positive impact of acquisitions in 2017 and

2018 in the United Kingdom, Austria and Denmark;

• improved performance from our service business

in continental Europe;

• continued improvement from newer service offerings
(e.g. emergency lights and passive fire protection); and

• the movement in the Euro to Sterling average

exchange rate, which had a favourable effect of
£1.0 million on reported revenue and £0.2 million
on operating profit. A more detailed review of this
year’s performance is given in the Financial Review
and the Strategic Report.

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 has acquired four established
fire protection businesses and strengthened its position
in the passive fire protection market with the acquisition
of Amberfire Limited. The Group has grown its
presence in the Netherlands, Belgium, Austria and
the UK with the acquisition of service contracts from
smaller well-established businesses for integration
into the Group’s existing subsidiaries. In addition,
with the acquisition of Linde Brandmateriel Aps the
Group has expanded its business into Denmark.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Financial review

In summary:
• Our acquisitive strategy continues to add to

Group profitability.

• The fire security market is experiencing increased
competition and downward pressure on prices.

• We will continue to concentrate on the highest

levels of customer service to mitigate this.

Consolidated Income Statement
The Group’s revenue increased by £11.8 million
(9.4%) to £137.7 million. Operating profit increased
by £1.5 million (6.9%) to £23.2 million. Of the increased
revenue, £2.6 million was generated by the Group’s
new subsidiaries in 2018 as disclosed in note 26.
In 2017 the Group acquired three new subsidiaries;
£4.1 million was generated in a full year from these
businesses. A further £4.1 million was generated
through smaller acquisitions and organic growth in
our existing businesses. The market for fire protection
is mature and highly competitive; as a result there is
a downward pressure on prices which is eroding
our margins. We will continue to concentrate on the
highest levels of customer service to mitigate this.

These results also reflect the movement in the
Euro to Sterling average exchange rate, which has
decreased from 1.14 to 1.13. If the 2018 results from
the European subsidiaries had been translated at
2017 rates, revenue would have been £136.7 million
instead of £137.7 million, which would represent an
increase of 8.6% on the prior year. On the same
basis, operating profit would have been £23.0 million
instead of £23.2 million, an increase of 6.0% compared
to 2017.

As an acquisitive Group the effect of past business
acquisitions can be seen in our amortisation charge.
This charge represents the declining value over time
of customer contracts we have acquired over the last
few years. Overall depreciation and amortisation
charged in deriving operating profit has increased by
£0.2 million in 2018 compared to 2017. This increase
is largely attributable to the increase in the amortisation
of service contracts. It is a factor of the price we pay
for service contracts and the length of time we expect
to retain those customers within the Group.

Net finance costs have declined by £0.1 million.
This represents the lower interest rates on the Group’s
borrowings following the refinancing in May 2018.
This charge also includes the revaluation of our
derivative financial instruments. These financial
instruments are the interest rate agreements the
Group entered into to mitigate its interest rate risk
on its bank borrowings. Their revaluation at each
year end has introduced volatility into our net finance
costs. In 2018 there was a marginal increase in
their value.

The Group’s effective income tax rate has declined
to 30.0% from 33.3% of operating profit as a result of
corporation tax reductions in some of the jurisdictions
in which the Group operates.

Consolidated Statement of Financial Position
The Group continues to demonstrate consistently
profitable performance and strong cash conversion.
This is illustrated by a well-capitalised balance
sheet with net cash and a strong asset base.

The Group’s borrowings disclosed in these financial
statements were refinanced in May 2018 with the
Group’s existing bankers, Lloyds Bank plc, resulting
in a new multi-currency term loan denominated as
£3 million in Sterling and €8 million in Euros. The facility
will be repaid evenly over five years. The Group
incurred £0.1 million in fees in arranging these loans,
which was amortised over the life of the loans. The
bank loans in the financial statements are stated net
of these finance arrangement fees.

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.

To fully address the foreign currency translation
exposure the Group’s borrowings, which were
refinanced in May 2018, are split between Euro and
Sterling according to the forecast income streams.
This policy acts as a natural hedge as the effect of an
adverse exchange movement on translation of foreign
currency loans would be offset by a positive effect of
translating income streams from Europe and vice versa.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Financial review continued

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. The Group’s operations are managed
on a Pan-European basis and there are 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.

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

Treasury management and policy continued
Regarding the interest risk, the Group has entered
into interest rate agreements capping LIBOR at 1.50%
and EURIBOR at 0.25% to take advantage of low
market interest rates. These agreements remain
in place until the loan is repaid in 2023.

Segmental reporting
The Directors have considered the requirements
of IFRS 8 “Operating Segments”. Operating segments
are reported in a manner consistent with the internal
reporting provided to the chief operating decision
maker (“CODM”). The CODM for the London Security
Group has been identified as the Board as ultimately
this function is responsible for the allocation of
resources and assessing the performance of the
Group’s business units. The management information
on which the CODM makes its decisions has been
reviewed to identify any reportable segments as
defined by IFRS 8. The Directors have concluded
that there is a single operating segment for which
financial information is regularly reviewed by the CODM.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

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.

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. These activities are performed whilst
considering the preservation of the environment.
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.
The Board believes that the presence and requirements
of a longstanding controlling shareholder helps focus the
Group’s strategy on long-term shareholder value creation.

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 2018
of £16.1 million (2017: £14.3 million). The Group’s
results are discussed in detail in the Financial Review.
The Group paid dividends in the year of £9.8 million
comprising a final dividend in respect of the year ended
31 December 2017 of £0.40 per ordinary share and an
interim dividend of £0.40 per ordinary share in respect
of the year ended 31 December 2018. The Board is
recommending the payment of a final dividend in
respect of the year ended 31 December 2018 of
£0.40 per ordinary share. The Group ended the year
with net assets of £110.2 million (2017: £103.6 million).

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

Board performance
The Board is measured primarily with reference to
the 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. The Board
also considers that the stability of its membership
over recent years has been a major contributor to the
Company’s success. The Vice Chairman evaluates
the Board performance informally on a regular basis
and formally at least twice per year.

Principal risks and uncertainties
Increased competition, the current economic climate
and industry changes are regarded as the main strategic
risks. These are mitigated by providing service levels
recognised as being the best in the industry, together
with a diverse base of operations throughout Europe.

Growth through acquisition is an important strategy
of the Group. A potential risk is not identifying
unsuitable acquisitions that fail to meet the investment
case and 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.

The UK vote to leave the EU has had little impact
on the Group’s performance. There is no significant
trade between the Group’s Sterling and Eurozone
subsidiaries which would be subject to uncertainty
surrounding access to each other’s markets.

Foreign currency and interest rate risk are discussed
in the Financial Review.

Future developments
We expect competition to intensify in our core market.
Despite this our successful business model means
we are well placed to deal with the challenges that
may arise in 2019 and beyond. At the same time the
Group continues to carefully control its cost base to
ensure satisfactory levels of profit can be achieved.

Signed on behalf of the Board

J.G. Murray
Chairman
8 May 2019

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Directors and Company advisers

Executive Directors

Independent Non-Executive Directors

Henry Shouler 81
Senior Independent Non-Executive Director

Henry Shouler is a Director of PKL Holdings plc.
He also has a number of other directorships in
private companies.

Non-Executive Directors

Jean-Pierre Murray 50
Non-Executive Director

Jean-Pierre Murray is the son of Jacques Gaston
Murray. He graduated from Los Angeles Pepperdine
University in 1990 with a BA in Finance, and gained
his master’s degree in 1993. He is a Non-Executive
Director of Andrews Sykes and a number of
private companies.

Marie-Claire Leon 55
Non-Executive Director

Marie-Claire Leon has been responsible for
managing various projects around the world
with Jacques Gaston Murray. She graduated from
California State University in 1988 with a bachelor’s
degree in Business Administration, with a particular
focus on Marketing Management, New Venture
and Small Business Management. She is a
Non-Executive Director of Andrews Sykes.

Jacques Gaston Murray 99
Chairman

Mr. Murray’s involvement in the fire industry began
in 1961 with his investment in a business which
became General Incendie S.A., one of France’s
largest fire extinguisher companies. He invested
in Nu-Swift and became Chairman in 1982 and the
majority shareholder in 1984 when Nu-Swift acquired
Associated Fire Protection Limited, which owned
General Incendie S.A. He has a business interest
in, and is Chairman of, Andrews Sykes Group plc
(“Andrews Sykes”), a separately AIM-quoted
UK company.

Jean-Jacques Murray 52
Vice Chairman

Jean-Jacques Murray is the son of Jacques Gaston
Murray. 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 a
Non-Executive Vice Chairman of Andrews Sykes.

Xavier Mignolet 54
Managing Director

Xavier Mignolet joined the Group in 1995.
He graduated with a master’s degree in Commercial
and Financial Sciences at HEC in Liege in 1987 and
started his career in financial audit for PwC in Brussels.
He is a Non-Executive Director of Andrews Sykes.

Emmanuel Sebag 50
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.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

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 Senior Non-Executive
Director is encouraged to seek external professional
advice at the Group’s expense.

Corporate governance
The Parent Company’s and Group’s approach
to applying the ten principles set out in Section 3 of
QCA Corporate Governance Code is set out in detail
on the Group’s website, www.londonsecurity.org.
Since the adoption of the Quoted Companies
Alliance (“QCA”) Corporate Governance Code
on 20 September 2018 there has been one
Board meeting in November 2018. In attendance
were: Jean-Jacques Murray, Xavier Mignolet,
Emmanuel Sebag, Henry Shouler and
Marie-Claire Leon.

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, he can give his
contributions to an attending Director or the Company
Secretary and relay any comments concerning the
Board minutes before they are adapted. Should there
be anything that requires reconvening the meeting,
an all parties telephone Board meeting is convened.

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

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

Board committees
The Board maintains two standing committees
comprising Executive and Non-Executive Directors.
Both committees have written constitutions and
terms of reference.

The remuneration committee comprises H. Shouler
and J-J. Murray. The committee is chaired by H. Shouler.
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 in the Annual Report.

The audit committee currently comprises
H. Shouler and J-J. Murray. H. Shouler is independent
of management and EOI Fire SARL. The committee
is chaired by H. Shouler. The audit committee is
responsible for ensuring that the financial performance of
the Group is properly monitored, controlled and reported
on. The audit committee considers risk and internal
control as a fundamental part of its responsibilities.
It meets the auditors to discuss the audit approach and
the results of the audit. 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.

Company information

Company advisers
Company Secretary
and registered office
Richard Pollard
Premier House
2 Jubilee Way
Elland
West Yorkshire HX5 9DY

Registered number
53417

Chartered accountants and
statutory independent auditors
PricewaterhouseCoopers LLP
Central Square
29 Wellington Street
Leeds LS1 4DL

Stockbrokers and
nominated advisers
WH Ireland Limited
24 Martin Lane
London EC4R 0DR

Registrars
Link Asset Services
Northern House
Woodsome Park
Fenay Bridge
Huddersfield HD8 0LA

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Report of the Directors

The Directors present their report and the audited Group and Parent Company financial statements for the year ended 31 December 2018.
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.

Directors
The Directors of the Parent Company who served during the whole of the year ended 31 December 2018, and up to the date
of signing the Group and Parent Company financial statements, were:

Executive Directors
J.G. Murray, J-J. Murray, X. Mignolet and E. Sebag were Directors throughout the whole of the year ended 31 December 2018.

Non-Executive Directors
M-C. Leon, H. Shouler and J-P. Murray were Directors throughout the whole of the year ended 31 December 2018.

M. Gailer (deceased) served as a Director until 5 March 2018.

J-J. Murray, X. Mignolet and M-C. Leon retire by rotation and, being eligible, offer themselves for re-election at the Annual General Meeting.

None of the Directors have a service contract with the Parent Company.

Brief biographical details of the Directors are set out on page 6.

Directors’ interests
No Director in office at 31 December 2018 had any disclosable interest in the share capital of the Parent Company or any
subsidiary undertaking.

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 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 8 May 2019, the Parent Company had been notified of the following interests of 3% or more in its share capital:

EOI Fire SARL
Tristar Fire Corp.

Number
of shares

9,861,954
2,256,033

Percentage
of share
capital

80.43%
18.40%

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

J.G. Murray is a Director of London Security plc as well as EOI Fire SARL. J.G. Murray, J-J. Murray, J-P. Murray and M-C. Leon
are Directors of London Security plc as well as Tristar Fire Corp. X. Mignolet is a Director of London Security plc and resigned
as a Director of Tristar Fire Corp. on 17 January 2019.

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.

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.

We pride ourselves in 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, are provided to all staff both 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.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

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 2018 Group average creditor days were 56 days (2017: 56 days). The Parent Company had no trade creditors
at either year end.

Donations
The Parent Company and the Group made no political donations during the year (2017: £Nil) and made charitable donations
of £1,000 (2017: £Nil).

Purchase of own shares and authorities to issue shares
As at 8 May 2019 there remained outstanding general authority for the Directors to purchase a further 500,000 ordinary shares.
Resolution 9 is to be proposed at the Annual General Meeting to extend this authority until the 2019 Annual General Meeting.

The special business to be proposed at the 2019 Annual General Meeting also includes, at resolution 8, 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 £6,131, 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 5, an ordinary
resolution, being approved to authorise the Directors to have the power to issue ordinary shares.

Statement of disclosure of information to auditors
The Directors of the Parent Company at the date of this report confirm that:

• so far as each Director is aware, there is no relevant audit information of which the Parent Company’s auditors are unaware; and

• each Director has taken all steps he or she ought to have taken as a Director in order to make himself or herself aware of any

audit information and to establish that the Parent Company’s auditors are aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of Section 418(2) of the Companies Act 2006.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Report of the Directors continued

Statement of Directors’ responsibilities in respect of the financial statements
The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law
and regulation.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have
prepared the Group financial statements in accordance with International Financial Reporting Standards (“IFRSs”) as adopted by
the European Union and Parent Company financial statements in accordance with United Kingdom Generally Accepted Accounting
Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and
Republic of Ireland”, and applicable law). Under company law the Directors must not approve the financial statements unless they
are satisfied that they give a true and fair view of the state of affairs of the Group and Parent Company and of the profit or loss
of the Group and Parent Company for that period. In preparing the financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• state whether applicable IFRSs as adopted by the European Union have been followed for the Group financial statements and

United Kingdom Accounting Standards, comprising FRS 102, have been followed for the Parent Company financial statements,
subject to any material departures disclosed and explained in the financial statements;

• make judgements and accounting estimates that are reasonable and prudent; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and

Parent Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group
and Parent Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Group
and Parent Company and enable them to ensure that the financial statements comply with the Companies Act.

The Directors are also responsible for safeguarding the assets of the Group and Parent Company and hence for taking reasonable
steps for the prevention and detection of fraud and other irregularities.

The Directors of the ultimate Parent Company are responsible for the maintenance and integrity of the ultimate Parent Company’s
website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ
from legislation in other jurisdictions.

Directors’ confirmations
In the case of each Director in office at the date the Directors’ Report is approved:

• so far as the Director is aware, there is no relevant audit information of which the Group and Parent Company’s auditors are

unaware; and

• they have taken all the steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit

information and to establish that the Group and Parent Company’s auditors are aware of that information.

Independent auditors
A resolution is to be proposed at the Annual General Meeting in accordance with Section 489 of the Companies Act 2006 for the
re-appointment of PricewaterhouseCoopers LLP as independent auditors of the Parent Company and authorising the Directors
to set its remuneration.

Annual General Meeting
The Notice of the Annual General Meeting is set out on pages 55 to 57 and all shareholders are invited to attend in person if they
wish or by proxy if they are unable to attend. A form of proxy is enclosed for you to complete according to the instructions printed
on it and send to the postage paid address. All proxies must be received by 11 am on 16 June 2019. Appointment of a proxy will
not prevent you from attending and voting at the Meeting if you subsequently find that you are able to do so.

By order of the Board

R. Pollard
Company Secretary
8 May 2019

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Directors’ remuneration report

The Parent Company has followed the provisions in Schedule B of the Combined Code with respect to Directors’ remuneration
except that, due to the small size of the Board, the remuneration committee does not consist exclusively of Independent
Non-Executive Directors. As the Parent Company is quoted on AIM, it is not required to make disclosures specified by
the Remuneration Report Regulations 2002.

Remuneration committee (unaudited)
The remuneration committee comprises H. Shouler and J-J. Murray. The committee is chaired by H. Shouler, who is an independent
Non-Executive Director. The remuneration of Non-Executive Directors is set by a committee of the other Directors. No Director is
involved in deciding his or her own remuneration.

Policy on Executive Directors’ remuneration (unaudited)
It is the Parent Company’s policy to provide the packages needed to attract, retain and motivate Directors of the quality required,
bearing in mind the size and resources of the Parent Company and its position relative to other companies.

Directors’ remuneration (audited)
Directors’ emoluments totalled £566,067 (2017: £453,375). This includes an amount paid to the highest paid Director of £381,047
(2017: £247,726).

In compliance with the amendment to AIM Rule 19 the following disclosure in respect of Directors’ remuneration is made:

Emoluments and compensation
including any cash or non-cash
benefits received

2018

2017

J.G. Murray
J-J. Murray
X. Mignolet
E. Sebag
J-P. Murray
M-C. Leon
H. Shouler
M. Gailer

£Nil

£Nil
£116,922 £118,156
£381,047 £247,726
£Nil
£21,827
£20,000
£23,333
£22,333

£Nil
£20,000
£20,000
£24,000
£4,098

None of the Directors participate in Group pension arrangements. The Company paid no contributions to any private
pension schemes.

The costs relating to the Head Office and other expenses of the Executive Directors are limited under a Services Agreement
dated 10 December 1999 and reviewed annually. The total costs amounted to £800,473 (2017: £951,000) for the year ended
31 December 2018 as per the Services Agreement.

On behalf of the Board

H. Shouler
Chairman of the remuneration committee
8 May 2019

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Independent auditors’ report

to the members of London Security plc

Report on the audit of the group financial statements
Opinion
In our opinion, London Security plc’s group financial statements (the “financial statements”):

• give a true and fair view of the state of the group’s affairs as at 31 December 2018 and of its profit and cash flows for the year

then ended;

• have been properly prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the

European Union; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements, included within the Annual Report and Accounts (the “Annual Report”), which
comprise: the Consolidated statement of financial position as at 31 December 2018; the Consolidated income statement and
Consolidated statement of comprehensive income, the Consolidated statement of cash flows, and the Consolidated statement
of changes in equity for the year then ended and the notes to the financial statements, which include a description of the significant
accounting policies.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities
under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence
We remained independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial
statements in the UK, which includes the FRC’s Ethical Standard, as applicable to listed entities, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.

Our audit approach
Overview

• Overall group materiality: £1,156,000 (2017: £1,075,000), based on 5% of profit before tax.

Materiality

• We, as the Group engagement team performed full scope audits of five UK entities and limited

procedures over two further entities, covering 17.2% of the Group’s external revenues and 3.8%
of the Group’s profit before tax.

• For the three largest non-UK components of the Group, which are audited by PwC component

auditors, we were heavily involved at all stages of their audits by virtue of numerous communications
throughout the process, including the issuance of detailed audit instructions, review and discussion
of audit findings, in particular over our areas of focus.

• As a result of this scoping we obtained coverage over 84.3% of the Group’s external revenues

and 74.2% of the Group’s profit before tax.

• Goodwill impairment assessment.

Audit
scope

Key audit
matters

As in all of our audits we also addressed the risk of management override of internal controls, including evaluating whether there was
evidence of bias by the directors that represented a risk of material misstatement due to fraud.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Report on the audit of the group financial statements continued
Key audit matters
Key audit matters are those matters that, in the auditors’ professional judgement, were of most significance in the audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud)
identified by the auditors, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the
audit; and directing the efforts of the engagement team. These matters, and any comments we make on the results of our procedures
thereon, were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters. This is not a complete list of all risks identified by our audit.

Key audit matter

How our audit addressed the key audit matter

Goodwill impairment assessment
The Group holds goodwill with a carrying
value of £51.2 million (2017: £49.7 million),
which is required to be tested for impairment
on an annual basis.

We focused on this area because of the
magnitude of the balance and due to the
judgements made by management when
assessing for the possibility of impairment.
These judgements include the nature,
timing and extent of the projected cash
flows within the discounted cash flow
model prepared to assess impairment
and associated inputs to the model
such as discount rate.

We obtained management’s discounted cash flow model and assessed its
appropriateness in accordance with the requirements of IFRS.

We evaluated the process by which the Directors prepared their cash flow forecasts
and compared them against the latest Board approved forecasts and found them
to be consistent. We evaluated the historical accuracy of forecasts by comparing
the forecasts used in the prior year cash flow model to the actual performance in
the current year. These procedures enabled us to determine the accuracy of the
Directors’ forecasting process. We found no issues and were satisfied with the
evidence obtained in this regard.

We evaluated the assumptions used in the profit and cash flow forecasts included
in the Directors’ cash flow model. We compared forecast growth rates with historical
performance as well as gaining an understanding of key factors and judgements
applied in determining the future growth rates. We performed sensitivity analysis
over the principal assumptions used in the cash flow model. We found no issues
and were satisfied with the evidence obtained in this regard.

We assessed the appropriateness of the Directors’ discount rates by comparing
the rate used to our own independently determined range of what we would consider
to be acceptable. We found no issues and were satisfied with the evidence obtained
in this regard.

How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements
as a whole, taking into account the structure of the group, the accounting processes and controls, and the industry in which it operates.

Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These,
together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit
procedures on the individual financial statement line items and disclosures and in evaluating the effect of misstatements, both
individually and in aggregate on the financial statements as a whole.

Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:

Overall Group materiality

£1,156,000 (2017: £1,075,000).

How we determined it

5% of profit before tax.

Rationale for benchmark applied

Based on the benchmarks used in the annual report, profit before tax is the primary
measure used by the shareholders in assessing the performance of the group,
and is a generally accepted auditing benchmark.

For each component in the scope of our group audit, we allocated a materiality that is less than our overall group materiality.
The range of materiality allocated across components was between £26,000 and £935,000. Certain components were audited
to a local statutory audit materiality that was also less than our overall group materiality.

We agreed with the Audit Committee that we would report to them misstatements identified during our audit above £58,500
(2017: £53,750) as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Independent auditors’ report continued

to the members of London Security plc

Report on the audit of the group financial statements continued
Conclusions relating to going concern
ISAs (UK) require us to report to you when:

• the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt
about the group’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from
the date when the financial statements are authorised for issue.

We have nothing to report in respect of the above matters.

However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the group’s ability to
continue as a going concern. For example, the terms on which the United Kingdom may withdraw from the European Union are not
clear, and it is difficult to evaluate all of the potential implications on the group’s trade, customers, suppliers and the wider economy.

Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’
report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover
the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated
in this report, any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform
procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other
information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report based on these responsibilities.

With respect to the Strategic Report and Report of the Directors, we also considered whether the disclosures required by the
UK Companies Act 2006 have been included.

Based on the responsibilities described above and our work undertaken in the course of the audit, ISAs (UK) require us also
to report certain opinions and matters as described below.

Strategic Report and Report of the Directors
In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic Report and
Report of the Directors for the year ended 31 December 2018 is consistent with the financial statements and has been prepared
in accordance with applicable legal requirements.

In light of the knowledge and understanding of the group and its environment obtained in the course of the audit, we did not identify
any material misstatements in the Strategic Report and Report of the Directors.

Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements
As explained more fully in the Statement of Directors’ responsibilities in respect of the financial statements set out on page 10,
the directors are responsible for the preparation of the financial statements in accordance with the applicable framework and for
being satisfied that they give a true and fair view. The directors are also responsible for such internal control as they determine is
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group’s ability to continue as a going concern,
disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors
either intend to liquidate the group or to cease operations, or have no realistic alternative but to do so.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Report on the audit of the group financial statements continued
Responsibilities for the financial statements and the audit continued
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this report
This report, including the opinions, has been prepared for and only for the parent company’s members as a body in accordance
with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or
assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.

Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:

• we have not received all the information and explanations we require for our audit; or

• certain disclosures of directors’ remuneration specified by law are not made.

We have no exceptions to report arising from this responsibility.

Other matter
We have reported separately on the parent company financial statements of London Security plc for the year ended 31 December 2018.

Ian Morrison (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Leeds
8 May 2019

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Consolidated income statement

for the year ended 31 December 2018

Revenue
Cost of sales

Gross profit
Distribution costs
Administrative expenses

Operating profit

EBITDA*
Depreciation and amortisation

Operating profit

Finance income
Finance costs

Finance costs – net

Profit before income tax
Income tax expense

Profit for the year

Profit is attributable to:
Equity shareholders of the Company
Non-controlling interest

Earnings per share
Basic and diluted

* Earnings before interest, tax, depreciation and amortisation.

The notes on pages 21 to 45 are an integral part of these consolidated financial statements.

The above results are all as a result of continuing operations.

Notes

2018
£’000

2017
£’000

137,711
(31,780)

125,873
(26,626)

105,931
(50,593)
(32,163)

99,247
(47,751)
(29,757)

23,175

21,739

29,557
(6,382)

27,934
(6,195)

23,175

21,739

7
8

131
(171)

(40)

237
(392)

(155)

23,135
(6,945)

21,584
(7,239)

16,190

14,345

16,077
113

14,310
35

16,190

14,345

131.1p

116.7p

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Consolidated statement of comprehensive income

for the year ended 31 December 2018

Profit for the financial year

Other comprehensive income/(expense):
Items that may be reclassified subsequently to profit or loss:
– currency translation differences on foreign currency net investments
Items that will not be reclassified subsequently to profit or loss:
– actuarial gain recognised in the Nu-Swift Pension Scheme
– movement on deferred tax relating to Nu-Swift Pension Scheme surplus
– actuarial (loss)/gain recognised in the Ansul Pension Scheme
– movement on deferred tax relating to Ansul Pension Scheme deficit

Other comprehensive income for the year, net of tax

Total comprehensive income for the year

The notes on pages 21 to 45 are an integral part of these consolidated financial statements.

Notes

2018
£’000

2017
£’000

16,190

14,345

20
18
20
18

361

1,439

16
(6)
(145)
36

262

734
(257)
721
(313)

2,324

16,452

16,669

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Consolidated statement of changes in equity

for the year ended 31 December 2018

At 1 January 2017

Total comprehensive income for the year
Profit for the financial year
Other comprehensive income/(expense):
– exchange adjustments
– actuarial gain on pension schemes
– net movement on deferred tax

relating to pension asset

Total comprehensive income for the year

Contributions by and distributions
to owners of the Company:
– dividends

Contribution from non-controlling
interest on business combination

At 31 December 2017
and 1 January 2018

Total comprehensive income for the year
Profit for the financial year
Other comprehensive income/(expense):
– exchange adjustments
– actuarial loss on pension schemes
– net movement on deferred tax relating

to pension asset

Total comprehensive income for the year

Contributions by and distributions
to owners of the Company:
– dividends

At 31 December 2018

Share
capital
£’000

123

Share
premium
account
£’000

344

Capital
redemption
reserve
£’000

Merger
reserve
£’000

Other
reserve
£’000

Retained Non-controlling
interest
earnings
£’000
£’000

Total
equity
£’000

2,033

7,031

87,021

— 96,553

—

—
—

—

—
—

—

—
—

—

—
—

—

— 14,310

14,345

1,439
—

—
1,455

—

(570)

1,439

15,195

—
—

—

1,439
1,455

(570)

16,669

—

(9,808)

—

(9,808)

—

154

123

344

2,033

8,470

92,408

189

103,568

—

—
—

—

—
—

—

123

—

344

—

—
—

—

—
—

—

— 16,077

113

16,190

361
—

—

—
(129)

—
—

—

361
(129)

361

15,978

113

16,452

—

(9,809)

—

(9,809)

2,033

8,831

98,577

302

110,211

The merger reserve is not a distributable reserve. The other reserve relates entirely to the effects of changes in foreign currency
exchange rates.

The notes on pages 21 to 45 are an integral part of these consolidated financial statements.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Consolidated statement of financial position

as at 31 December 2018

Assets
Non-current assets
Property, plant and equipment
Intangible assets
Deferred tax asset
Retirement benefit surplus

Current assets
Inventories
Trade and other receivables
Cash and cash equivalents

Total assets

Liabilities
Current liabilities
Trade and other payables
Income tax liabilities
Borrowings
Derivative financial instruments
Provision for liabilities and charges

Non-current liabilities
Trade and other payables
Borrowings
Derivative financial instruments
Deferred tax liabilities
Retirement benefit obligations
Provision for liabilities and charges

Total liabilities

Net assets

Shareholders’ equity
Ordinary shares
Share premium
Capital redemption reserve
Merger reserve
Other reserves
Retained earnings

Equity attributable to owners of the Parent Company
Non-controlling interest

Total equity

Notes

2018
£’000

2017
£’000

11
12
18
20

14
15
16

19
13
21

17
19
13
18
20
21

22
22
22

12,077
63,695
811
4,430

11,589
61,724
589
4,397

81,013

78,299

13,293
28,732
26,110

11,749
26,063
24,652

68,135

62,464

149,148

140,763

(22,713)
(1,731)
(2,125)
—
(5)

(19,576)
(1,699)
(11,125)
(54)
—

(26,574)

(32,454)

(922)
(7,441)
(41)
(1,898)
(1,880)
(181)

(1,003)
—
—
(1,830)
(1,721)
(187)

(12,363)

(4,741)

(38,937)

(37,195)

110,211

103,568

123
344
1
2,033
8,831
98,577

123
344
1
2,033
8,470
92,408

109,909
302

103,379
189

110,211

103,568

The notes on pages 21 to 45 are an integral part of these consolidated financial statements.

The financial statements on pages 16 to 45 were approved by the Board of Directors on 8 May 2019 and were signed on its behalf by:

J.G. Murray
Chairman
8 May 2019

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Consolidated statement of cash flows

for the year ended 31 December 2018

Cash flows from operating activities
Cash generated from operations
Interest paid
Income tax paid

Net cash generated from operating activities

Cash flows from investing activities
Acquisition of subsidiary undertakings (net of cash acquired)
Purchases of property, plant and equipment
Proceeds from the sale of property, plant and equipment
Purchases of intangible assets
Interest received

Net cash used in investing activities

Cash flows from financing activities
Repayments of borrowings
Dividends paid to Company’s shareholders
Contribution from non-controlling interest

Net cash used in financing activities

Effects of exchange rates on cash and cash equivalents

Net increase in cash in the year
Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year

The notes on pages 21 to 45 are an integral part of these consolidated financial statements.

Notes

2018
£’000

2017
£’000

28,385
(147)
(7,393)

25,182
(368)
(7,249)

20,845

17,565

(4,274)
(3,551)
398
(746)
12

(1,220)
(3,384)
349
(600)
30

(8,161)

(4,825)

(1,614)
(9,809)
—

(1,809)
(9,808)
154

(11,423)

(11,463)

197

773

1,458
24,652

2,050
22,602

26,110

24,652

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Notes to the financial statements

for the year ended 31 December 2018

1 General information
London Security plc (the “Parent Company”) is a leader in the European fire security industry, providing fire protection for our
customers through a local presence in the UK, Belgium, the Netherlands, Austria, France, Germany, Denmark and Luxembourg.

The Parent Company is a public limited liability company incorporated and domiciled in the United Kingdom. The registered office
is Premier House, 2 Jubilee Way, Elland, West Yorkshire HX5 9DY.

The Parent Company has its primary listing on AIM, part of the London Stock Exchange.

2 Summary of significant accounting policies
The principal accounting policies applied in the preparation of these Group financial statements are set out below. These policies
have been consistently applied to all the years presented, unless otherwise stated.

Basis of preparation
These Group financial statements have been prepared in accordance with IFRS as adopted by the EU, IFRIC interpretations and those
parts of the Companies Act 2006 applicable to companies reporting under IFRS. These Group financial statements have been prepared
under the historical cost convention, as modified by accounting for derivative financial instruments at fair value through profit or loss.

The Directors have prepared these financial statements on the fundamental assumption that the Group is a going concern and
will continue to trade for at least 12 months following the date of approval of the financial statements. In determining whether the
Group’s accounts should be prepared on a going concern basis the Directors have considered the factors likely to affect the future
performance. The Directors have reviewed trading and cash flow forecasts as part of the going concern assessment and based
on this have the expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.

Accounting developments
A number of new standards, amendments to standards and interpretations are effective for the year ended 31 December 2018.
These are considered either not relevant or to have no material impact on the Group. The following standards have been considered
in more detail:

(a) IFRS 9 “Financial Instruments” incorporating the impairment classification and measurement requirements replaced IAS 39

“Financial Instruments: Recognition and Measurement” from 1 January 2018. The Group has reviewed the composition of its
trade receivables and concluded that as the expected term of the receivables is less than one year the receivables do not have
a significant financing component. Therefore the Group has measured these assets at their transaction price and the new
standard has not had a material impact on the Group.

(b) IFRS 15 “Revenue from Contracts with Customers” was applicable from 1 January 2018. The Group has conducted an assessment
of the impact of the standard and concluded that our current revenue recognition policies comply and the standard has not had
a material impact on the Group.

(c) There are a number of new standards, amendments to standards and interpretations that are effective for the year ended

31 December 2018. These are considered not relevant to the Group.

The following standards and interpretations have been issued but were not mandatory for annual reporting periods ending
on 31 December 2018:

(a) IFRS 16 “Leases” was issued in January 2016 with an effective date of 1 January 2019. The standard specifies how leases are

recognised, presented, measured and disclosed. We expect that the majority of the Group’s lease commitments will be brought
onto the balance sheet together with corresponding right of use assets. In the Income Statement, the existing operating lease charge,
which is recognised within operating profit, will be replaced by a depreciation charge in respect of the right of use asset. In addition
there will be an interest cost in relation to the lease liability which will be recognised within finance costs. This is likely to impact
on the timing of the recognition of lease costs within the Income Statement although it will not affect the Group’s cash flows.

The Group does not intend to restate prior year figures when the new standard is adopted, with lease asset values being set
equal to lease liabilities at the date of transition in line with the simplified approach under IFRS 16. The Group has elected to
apply the recognition exemptions in respect of short-term leases of less than 12 months and low-value items with an initial
purchase price of less than £4,500. A review of the Group’s operating lease commitments was undertaken and identified
that property and motor vehicles were the only high-value items to which the standard applies.

The Group has based the incremental borrowing rate at which to discount the future lease liabilities on the multi-currency
refinancing which was completed in May 2018 in order to set a different rate for leases denominated in Sterling and Euros.
The Group has completed its assessment of the impact of the standard on the Group’s results and financial position.
The lease liability and corresponding right of use asset disclosed in the Statement of Financial Position will be £2.5 million
on transition at 1 January 2019 and the impact on the 2019 Income Statement will not be material.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

2 Summary of significant accounting policies continued
Consolidation
Subsidiaries are entities which the Group has power over, exposure or rights to variable returns and an ability to use its power
to affect those returns. All subsidiaries share the same reporting date, being 31 December, and the same accounting policies
as London Security plc.

The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition is
measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange.
The costs directly attributable to the acquisition are expensed, with the exception of those relating to the costs to issue debt or
equity securities, which are recognised in accordance with IAS 32 and IAS 39.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their
fair values at the acquisition date, irrespective of the extent of any minority interest. The excess of the cost of acquisition over the fair
value of the Group’s share of the identifiable net assets acquired is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised
losses are also eliminated but considered an impairment indicator of the asset transferred.

On transition to IFRS, the Directors fixed the value of consolidated goodwill on the European subsidiaries at the rate in effect at the
date of transition, as permitted under IFRS 1. Hence, the consolidated goodwill is presented at cost less any provision for diminution
in value.

Segment reporting
An operating segment is a group of assets and operations for which discrete financial information is available that is regularly
reviewed by the CODM. The Directors have concluded that there is a single operating segment as defined by IFRS 8, being the
provision and maintenance of fire protection equipment in Europe. Consequently, the results for the year and assets and liabilities
relate to the one operating segment and one geographical area.

Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic
environment in which the entity operates (the “functional currency”). The Group financial statements are presented in Sterling, which
is the Parent Company’s functional and presentation currency.

(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at
year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Income Statement.

(c) Group companies
The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that
have a functional currency different from the presentation currency are translated into the presentation currency as follows:

(i)

assets and liabilities for each Statement of Financial Position presented are translated at the closing rate at the date of that
Statement of Financial Position;

(ii) income and expenses for each Income Statement are translated at average exchange rates; and

(iii) all resulting exchange differences are recognised as a separate component of equity and are reported within the

Statement of Comprehensive Income.

In accordance with IFRS 1, the translation reserve has been set at £Nil at the date of transition to IFRS.

On consolidation, exchange differences arising from the translation of the net investment in foreign operations and of borrowings
and other currency instruments designated as hedges of such investments are taken to other comprehensive income. When a
foreign operation is sold, exchange differences that were recorded in equity are recognised in the Income Statement as part
of the gain or loss on sale.

Notes to the financial statements continuedfor the year ended 31 December 2018LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

2 Summary of significant accounting policies continued
Property, plant and equipment
Property is carried at deemed cost at the date of transition to IFRS based on the previous UK GAAP valuations. Plant and
equipment held at the date of transition and subsequent additions to property, plant and equipment are stated at purchase
cost including directly attributable costs, less accumulated depreciation.

Freehold land is not depreciated. Depreciation on all other assets is calculated using the straight line method to allocate their
cost less residual value over their estimated useful lives, as follows:

Freehold buildings
Plant, machinery and extinguisher rental units 10%–33%
Motor vehicles and share in aircraft
Fixtures, fittings and equipment

5%–33%
10%

2%–6%

The assets’ residual values and useful lives are reviewed annually and adjusted if appropriate at each Statement of Financial Position date.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount. These are included
in the Income Statement.

Intangible assets
(a) Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the identifiable net assets
acquired. Goodwill on acquisition of subsidiaries is included in “intangible assets”. Separately recognised goodwill is tested annually
for impairment and carried at cost less accumulated impairment losses.

An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable
amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets
are grouped at the lowest levels for which there are separately identifiable cash flows.

Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount
of goodwill relating to the entity sold.

(b) Approval costs
Approval costs are the expenses incurred in meeting the regulatory requirements measuring the fire rating of our products. Approval
costs are shown at historical cost, have a finite useful life and are carried at cost less accumulated amortisation. Amortisation
is calculated using the straight line method to allocate their cost over their estimated useful lives (ten to 20 years).

(c) Computer software
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific
software. These costs are amortised over their estimated useful lives (three to five years) using the straight line method.

(d) Service contracts
Acquired service contracts are capitalised on the basis of the costs incurred to acquire. Amortisation is calculated using the straight
line method to allocate the cost of the contracts over their estimated useful lives (five to ten years) based on information available
to the Directors on average attrition rates.

Derivative financial instruments
Derivative financial instruments are initially measured at cost at the date the contract is entered into and are remeasured at fair value
at the Statement of Financial Position date with any valuation adjustment being reflected in the Income Statement. The fair value at
the balance sheet date is calculated based on observable interest rates.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

2 Summary of significant accounting policies continued
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first-in, first-out method. The cost
of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads.
Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses.
Provision is made for obsolete, slow-moving or defective items where appropriate.

Trade receivables
The Group has reviewed the composition of its trade receivables and concluded that as the expected term of the receivables is less
than one year the receivables do not have a significant financing component. Therefore the Group will initially measure these assets
at their transaction price under IFRS 15 and subsequently adjust for any allowance for expected credit loss under IFRS 9. The Group
applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected credit loss allowance
for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk
characteristics and days past due. Expected loss rates are based on historical credit losses experienced. Historical loss rates are
adjusted to reflect current and forward-looking factors affecting the ability of customers to settle the receivables. Consideration
is given to the overall economic environment as well as specific indicators that the recovery of a balance may be in doubt.
The movement in the expected credit loss is recognised in the Income Statement within administrative expenses.

Cash and cash equivalents
Cash and cash equivalents are included in the Statement of Financial Position at cost. Cash and cash equivalents includes cash in
hand, deposits held at call with banks and other short-term, highly liquid investments with original maturities of three months or less,
less bank overdrafts where there is a legal right of offset and an intention to settle. Bank overdrafts are shown within borrowings
in current liabilities on the Statement of Financial Position.

Share capital
Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from
the proceeds.

Where the Parent Company purchases its own shares, the consideration paid, including any directly attributable incremental costs
(net of income taxes), is deducted from equity attributable to the Parent Company’s equity holders until the shares are cancelled.

Trade payables
Trade payables are initially recognised at fair value.

Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at
amortised cost.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability
for at least 12 months after the Statement of Financial Position date.

Current and deferred income tax
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the Statement of
Financial Position date in the countries where the Company’s subsidiaries operate and generate taxable income. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to
interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, using the net assets approach, on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income tax is
not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that
at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax
rates (and laws) that have been enacted or substantively enacted by the Statement of Financial Position date and are expected
to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against
which the temporary differences can be utilised.

Notes to the financial statements continuedfor the year ended 31 December 2018LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

2 Summary of significant accounting policies continued
Employee benefits
Pension obligations
Group companies operate various pension schemes. The schemes are generally funded through payments to insurance companies or
trustee-administered funds, determined by periodic actuarial calculations. The Group has both defined benefit and defined contribution
plans. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. The Group
has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the
benefits relating to employee service in the current and prior periods. A defined benefit plan is a post-employment benefit plan other
than a defined contribution plan. Typically, defined benefit plans define an amount of pension benefit that an employee will receive
on retirement, usually dependent on one or more factors such as age, years of service and compensation.

The liability and surplus recognised in the Statement of Financial Position in respect of defined benefit pension plans is the present
value of the defined benefit obligation at the Statement of Financial Position date less the fair value of plan assets, together with
adjustments for actuarial gains or losses and past service costs. The defined benefit obligation is calculated triennially by independent
actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the
estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which
the benefits will be paid and that have terms to maturity approximating to the terms of the related pension liability.

The interest cost and the expected return on the assets are shown within finance cost and finance income respectively within
the Consolidated Income Statement. Actuarial gains and losses are recognised immediately in the Consolidated Statement of
Comprehensive Income. Net defined benefit pension scheme deficit and surplus are presented separately on the Statement of
Financial Position within non-current liabilities and non-current assets respectively before tax relief. The attributable deferred tax
asset and liability is included within deferred tax and is subject to the recognition criteria as set out in the accounting policy on
deferred taxation.

For defined contribution plans, the Group pays contributions to publicly or privately administered pension insurance plans on a
mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid.
The contributions are recognised as an employee benefit expense when they are due.

Provisions
Provisions are recognised when: the Group has a present legal or constructive obligation as a result of past events; it is more likely
than not that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions
are not recognised for future operating losses.

Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability.

Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary
course of the Group’s activities. Revenue is shown net of value-added tax, estimated returns, rebates and discounts and after
eliminated sales within the Group.

In line with IFRS 15, the Group has identified the performance obligations within its contracts with its customers and recognises
revenue when those obligations have been satisfied. Revenue is recognised as follows:

(a) Outright sale of equipment
Revenue from the outright sale of equipment is recognised upon delivery to the customer.

(b) Service
Revenue from the servicing of equipment is recognised when the service has been performed.

(c) Maintenance
Revenue from the provision of maintenance services is recognised over the term of the maintenance contract on a pro rata basis
with the unexpired portion held in deferred income.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

2 Summary of significant accounting policies continued
Revenue recognition continued
(d) Equipment rental
Revenue from the equipment leased to customers under an operating lease is recognised over the term of the lease, typically
five years, on a pro rata basis. All contracts are cancellable.

(e) Long-term installation
Revenue includes the initial amount agreed in the contract plus any variations in contract work, claims and incentive payments.
As soon as the outcome of the contract can be estimated reliably, contract revenue is recognised in the Income Statement
in proportion to the stage of completion of the contract. Contract expenses are recognised as incurred unless they create an
asset related to future contract activity. An expected loss on a contract is recognised immediately in the Income Statement.

The Group derives revenue from the transfer of goods and services over time and at a point in time in the revenue streams
previously identified.

2018

Timing of recognition:
At a point in time
Over time

Total revenue

2017

Timing of recognition:
At a point in time
Over time

Total revenue

Outright sale
£’000

Service Maintenance
£’000

£’000

Rental
£’000

Installation
£’000

Total
£’000

86,537
—

33,562
—

86,537

33,562

—
4,183

4,183

—
4,430

4,430

8,999
—

129,098
8,613

8,999

137,711

Outright sale
£’000

Service
£’000

Maintenance
£’000

Rental
£’000

Installation
£’000

Total
£’000

78,760
—

31,122
—

78,760

31,122

—
4,161

4,161

—
4,543

4,543

7,287
—

117,169
8,704

7,287

125,873

Cost of sales
Cost of sales includes direct material costs. Other direct costs, largely direct labour, of £52.2 million (2017: £47.8 million)
are included within distribution costs.

Leases
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating
leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the Income Statement
on a straight line basis over the period of the lease.

Dividend distribution
Dividend distribution to the Parent Company’s shareholders is recognised as a liability in the Group’s financial statements when
paid in the case of interim dividends or in the period in which the dividends are approved by the Parent Company’s shareholders
in the case of final dividends.

3 Financial risk management
Financial risk factors
The Board considers the Group has exposure to the following risks: foreign exchange risk, interest rate risk and capital risk. Risk
management is carried out under treasury policies and guidelines authorised and reviewed by the Board of Directors. This note
presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and processes for
measuring and managing risk and the Group’s management of capital. The Board has also considered the Group’s exposure to
credit risk and liquidity risk. The Group’s trade receivables consist of a large number of customers spread across diverse industries
and geographical locations. The Group does not have any significant credit risk exposure to any single customer. As a result the
Board has concluded that the carrying amount of financial assets recorded in the financial statements, which is net of impairment
losses, represents the Group’s maximum exposure to credit risk. In view of the significant level of cash reserves held by the Group,
the Board has concluded that it has minimal exposure to liquidity risk.

Notes to the financial statements continuedfor the year ended 31 December 2018LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

3 Financial risk management continued
Financial risk factors continued
(a) Foreign exchange risk
The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk.
Currency exposure arising from the net assets of the Group’s foreign operations is managed primarily through borrowings
denominated in the relevant foreign currencies.

The Group’s exposure to foreign currency risk is as follows. This is based on the carrying amount for monetary financial instruments
except derivatives when it is based on notional amounts:

31 December 2018

Cash and cash equivalents
Trade and other receivables
Bank loans
Trade and other payables
Income tax liabilities

Balance sheet exposure

31 December 2017

Cash and cash equivalents
Trade and other receivables
Bank loans
Trade and other payables
Income tax liabilities

Balance sheet exposure

Sterling
£’000

5,928
6,430
(2,788)
(5,939)
(347)

Euro
£’000

Total
£’000

20,182
22,302
(6,778)
(16,774)
(1,384)

26,110
28,732
(9,566)
(22,713)
(1,731)

3,284

17,548

20,832

Sterling
£’000

5,924
5,999
(3,292)
(4,768)
(402)

Euro
£’000

Total
£’000

18,728
20,064
(7,833)
(14,808)
(1,297)

24,652
26,063
(11,125)
(19,576)
(1,699)

3,461

14,854

18,315

A 5% weakening of the Euro against Sterling at 31 December 2018 would have decreased equity and profit or loss by £900,000
(2017: decrease of £755,000). This calculation assumes that the change occurred at the Statement of Financial Position date and
had been applied to risk exposures existing at that date. A 5% strengthening of the Euro against Sterling at 31 December 2018
would have had the equal but opposite effect, on the basis that all other variables remain constant.

(b) Interest rate risk
The Group’s interest rate risk arises from long-term borrowings. These borrowings were issued at variable rates based on EURIBOR
and LIBOR and did expose the Group to cash flow interest rate risk.

The Group manages its cash flow interest rate risk by entering into interest capping agreements. The effect of these agreements
is to fix the Group’s exposure to EURIBOR to 0.25% and LIBOR to 1.50%. The agreements took effect from May 2018 and provide
interest rate cover until the loans are repaid in May 2023.

(c) Capital risk
The Group’s objective in managing capital is to maintain a strong capital base to support current operations and planned growth
and to provide for an appropriate level of dividend payment to shareholders.

The Group is not subject to external regulatory capital requirements.

Total capital

Total borrowings
Less: cash and cash equivalents

Net funds
Total equity

Total capital

2018
£’000

2017
£’000

9,566
(26,110)

11,125
(24,652)

(16,544)
110,211

(13,527)
103,568

93,667

90,041

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

4 Significant accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances.

Significant estimates
The Group makes estimates and assumptions concerning the future. The resulting estimates will, by definition, seldom equal the
related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying
value of assets and liabilities within the next financial year are discussed below.

(a) Carrying value of goodwill and intangible assets
The Group tests annually whether the carrying value of goodwill has suffered any impairment, in accordance with its accounting
policy. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations.

The value-in-use calculations have used pre-tax cash flow projections based on the budget for the year ending 31 December 2019
and are extrapolated using an estimated growth rate of 1% reflecting the mature nature of the market in which the Group operates.
The cash flows are then discounted. The value-in-use calculations did not indicate impairment in any goodwill. If the discount rate
had been 5% higher there would still have been no impairment in any goodwill.

(b) Provisions for doubtful debtors
Trade receivables are stated in the Statement of Financial Position at their transaction price less any allowance for expected
credit loss under IFRS 9. The Group’s approach to the application of IFRS 9 is discussed in note 2 within the accounting policy
for trade receivables.

Significant judgements
(a) Pension scheme assumptions and mortality tables
The carrying value of the defined benefit pension scheme is valued using actuarial valuations. These valuations are based on
assumptions including the selection of the most appropriate mortality table for the profile of the members in the scheme and the
financial assumptions concerning discount rates and inflation. All these are estimates of future events and are therefore uncertain.
The choices are based on advice received from the scheme’s actuaries which is checked from time to time with benchmark
surveys. The effect of varying these assumptions is discussed in the relevant pension note.

(b) Useful economic lives of intangible assets
Amortisation of intangible assets is charged to the Income Statement on a straight line basis over the estimated useful economic life
of each asset, which in some cases is in excess of the contracted life. The Directors have made judgements based on the evidence
in the market and historical evidence on attrition rates when determining the useful economic lives of intangible assets and based
on the legal rights on the contracts being renewable.

(c) Carrying value of inventory
Subsequent to initial recognition as disclosed in the significant accounting policies, inventory is annually reviewed and, where
necessary, provision is made for obsolete, slow-moving and defective stocks.

5 Employee benefit expense

Wages and salaries
Social security costs
Other pension costs (note 20)

Number of employees

2018
£’000

2017
£’000

44,622
9,782
1,862

41,637
9,096
1,676

56,266

52,409

1,191

1,141

Directors’ remuneration is reported within audited sections of the Directors’ Remuneration Report on page 11 under the heading
“Directors’ remuneration (audited)”.

Notes to the financial statements continuedfor the year ended 31 December 2018LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

5 Employee benefit expense continued
The average monthly number of persons employed by the Group (including Directors) during the year was as follows:

Production
Administration and management

Total

6 Finance income and costs

Finance income
Bank interest receivable
Expected return on pension scheme assets (note 20)
Fair value of derivative financial instruments

Total finance income

Finance costs
Bank loans, overdrafts and other loans repayable within five years
Amortisation of loan arrangement fees
Interest on pension scheme liabilities (note 20)

Total finance costs

Net finance costs

7 Profit before income tax
Profit before income tax is stated after charging/(crediting):

Depreciation of property, plant and equipment
Amortisation of intangible fixed assets
Profit on disposal of plant and equipment
Hire charges under operating leases:
– land and buildings
– other

2018
Number

46
1,145

1,191

2017
Number

46
1,095

1,141

2018
£’000

12
106
13

131

(123)
(27)
(21)

(171)

(40)

2017
£’000

19
89
129

237

(271)
(97)
(24)

(392)

(155)

2018
£’000

2,996
3,386
(98)

639
735

2017
£’000

2,814
3,381
(78)

1,247
873

Services provided by the Group’s external auditors and network firms
During the year, the Group (including its overseas subsidiaries) obtained the following services from the Group’s auditors
as detailed below:

Audit services
Fees payable to the Parent Company’s auditors for the audit of the Group’s annual accounts
Fees payable to the Parent Company’s auditors and its network firms for other services:
– the audit of the Parent Company’s subsidiaries pursuant to legislation
Other services relating to:
– advisory services

2018
£’000

218

—

237

2017
£’000

200

224

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

8 Income tax expense

United Kingdom
Corporation tax

Foreign tax
Corporation taxes

Total current tax

Deferred tax
Original and reversal of timing differences representing:
– United Kingdom tax
– foreign tax

Total deferred tax (note 18)

Total tax charge

2018
£’000

469

2017
£’000

407

6,704

7,173

6,942

7,349

27
(255)

(228)

44
(154)

(110)

6,945

7,239

The tax for the year is higher (2017: higher) than the standard rate of corporation tax in the United Kingdom of 19.00% (2017: 19.25%).
The differences are explained below:

Profit on ordinary activities before taxation

Profit on ordinary activities multiplied by the standard rate of corporation tax in the United Kingdom of 19.00%
(2017: 19.25%)
Effects of:
– expenses not deductible for tax purposes
– overseas tax rate in excess of UK standard

Total tax charge

2018
£’000

2017
£’000

23,135

21,584

4,396

4,155

379
2,170

6,945

420
2,664

7,239

The Group’s effective income tax rate of 30.0% of operating profit is expected to remain constant despite a reduction in the UK’s
main rate of corporation tax to 19.0%. This is because most of the expense is incurred in overseas jurisdictions which are not
affected by this reduction.

9 Earnings per share
The calculation of basic earnings per ordinary share (“EPS”) is based on the profit on ordinary activities after taxation of £16,077,000
(2017: £14,310,000) and on 12,261,477 (2017: 12,261,477) ordinary shares, being the weighted average number of ordinary shares
in issue during the year.

For diluted EPS, the weighted average number of shares in issue is adjusted to assume conversion of all dilutive potential ordinary
shares. There was no difference in the weighted average number of shares used for the calculation of basic and diluted earnings
per share as there are no potentially dilutive shares outstanding.

Profit on ordinary activities after taxation

2018

2017

£’000

Pence

£’000

Pence

16,077

131.1

14,310

116.7

Notes to the financial statements continuedfor the year ended 31 December 2018LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

10 Dividends per share

Equity – ordinary shares
Final paid £0.40 (2017: £0.40) per share
Interim paid £0.40 (2017: £0.40) per share

2018
£’000

2017
£’000

4,904
4,905

9,809

4,904
4,904

9,808

The Board is recommending the payment of a final dividend in respect of the year ended 31 December 2018 of £0.40 per ordinary
share (2017: £0.40).

11 Property, plant and equipment

Cost
At 1 January 2017
Additions
On acquisitions of subsidiary undertakings
Disposals
Exchange adjustment

At 1 January 2018
Additions
On acquisitions of subsidiary undertakings
Disposals
Exchange adjustment

At 31 December 2018

Accumulated depreciation
At 1 January 2017
Disposals
Charge for the year
Exchange adjustment

At 1 January 2018
Disposals
Charge for the year
Exchange adjustment

At 31 December 2018

Net book amount

At 31 December 2018

At 31 December 2017

At 31 December 2016

Freehold
land and
buildings
£’000

9,781
102
—
—
261

10,144
112
—
—
59

Plant and
machinery
£’000

Extinguisher
rental units
£’000

3,771
204
2
(6)
146

4,117
228
14
(25)
35

10,861
369
—
(65)
483

11,648
346
—
(53)
109

Motor
vehicles
and share
in aircraft
£’000

10,678
2,391
47
(1,402)
426

12,140
2,335
163
(1,567)
115

Fixtures,
fittings and
equipment
£’000

4,940
318
4
(269)
183

5,176
478
29
(256)
44

Total
£’000

40,031
3,384
53
(1,742)
1,499

43,225
3,499
206
(1,901)
362

10,315

4,369

12,050

13,186

5,471

45,391

5,820
—
145
225

6,190
—
150
48

6,388

3,927

3,954

3,961

3,058
(4)
168
125

3,347
(25)
178
31

10,286
(58)
275
458

10,961
(49)
290
102

5,779
(1,146)
1,810
233

6,676
(1,272)
2,014
65

4,151
(263)
416
158

4,462
(255)
364
37

29,094
(1,471)
2,814
1,199

31,636
(1,601)
2,996
283

3,531

11,304

7,483

4,608

33,314

838

770

713

746

687

575

5,703

5,464

4,899

863

714

789

12,077

11,589

10,937

Depreciation and profit/loss on disposal have been charged to the Income Statement through administrative expenses. Freehold
land is not depreciated.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

12 Intangible assets

Cost
At 1 January 2017
Additions
On acquisitions of subsidiary undertakings
Exchange differences

At 1 January 2018
Additions
On acquisitions of subsidiary undertakings
Exchange differences

At 31 December 2018

Accumulated amortisation
At 1 January 2017
Charge for the year
Exchange differences

At 1 January 2018
Charge for the year
Exchange differences

At 31 December 2018

Net book amount

At 31 December 2018

At 31 December 2017

At 31 December 2016

Goodwill
£’000

Service
contracts
£’000

65,666
—
104
1,062

66,832
—
1,491
212

27,266
464
1,157
692

29,579
557
3,098
156

68,535

33,390

16,228
—
898

17,126
—
189

14,698
3,029
369

18,096
3,092
107

17,315

21,295

51,220

12,095

49,706

11,483

49,438

12,568

Software
£’000

1,364
71
—
59

1,494
92
—
9

1,595

969
196
44

1,209
169
9

1,387

208

285

395

Approval
costs
£’000

2,071
65
—
73

2,209
46
—
21

Total
£’000

96,367
600
1,261
1,886

100,114
695
4,589
398

2,276

105,796

1,723
156
80

1,959
125
20

33,618
3,381
1,391

38,390
3,386
325

2,104

42,101

172

250

348

63,695

61,724

62,749

Amortisation has been charged to the Income Statement through administrative expenses. Additions are discussed in further detail
in note 26.

Impairment tests for goodwill and service contracts
The recoverable amount of goodwill and service contracts is determined based on value-in-use calculations for each
cash-generating unit (“CGU”). The value-in-use calculations have used pre-tax cash flow projections based on the budget for
the year ending 31 December 2019. Subsequent cash flows are extrapolated using an estimated growth rate of 1% (2017: 1%)
reflecting the mature nature of the market in which the Group operates. The cash flows have then been discounted using a pre-tax
rate of 10% (2017: 10%). The value-in-use calculations did not indicate impairment in any goodwill or service contract. If the discount
rate had been 5% higher there would still have been no impairment in any goodwill. The value of goodwill is split into five CGUs
to assess indicators of impairment. Of the total goodwill £39,200,000 (2017: £39,081,000) relates to Ansul Group companies,
£11,081,000 (2017: £9,802,000) relates to the integrated UK companies and the balance relates to the remaining CGUs which
are individually considered insignificant.

13 Derivative financial instruments

Interest rate agreements

2018

2017

Assets
£’000

—

Liabilities
£’000

Assets
£’000

—

Liabilities
£’000

The Group has entered into interest rate agreements capping LIBOR at 1.50% and EURIBOR at 0.25%. The agreements took effect
from May 2018 and remain in effect until the loans are repaid in 2023. The liability represents the forecast increase in interest payable
as a result of these agreements over the remaining life of the loans at the year end. The fair value at the year end is calculated based
on observable interest rates.

Notes to the financial statements continuedfor the year ended 31 December 2018LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

14 Inventories

Raw materials and consumables
Work in progress
Finished goods

2018
£’000

4,803
668
7,822

2017
£’000

5,189
488
6,072

13,293

11,749

The cost of inventories recognised as an expense and included in cost of sales amounted to £30,912,000 (2017: £25,664,000).
No (2017: £Nil) previous inventory write downs have been reversed.

15 Trade and other receivables

Amounts falling due within one year
Trade receivables
Less: expected credit loss allowance

Trade receivables – net
Amounts owed by related undertakings
Other receivables
Prepayments and accrued income
Income tax recoverable

2018
£’000

2017
£’000

26,646
(1,562)

24,681
(1,776)

25,084
31
1,115
1,569
933

22,905
31
950
1,593
584

28,732

26,063

Amounts owed by related undertakings do not attract interest, no security is held in respect of these balances and are repayable
on demand.

As of 31 December 2018, trade receivables of £16,010,229 (2017: £15,409,542) were fully performing.

As of 31 December 2018, trade receivables of £6,848,099 (2017: £5,341,276) were past due but not impaired. These relate to
a number of independent customers for whom there is no expected credit loss. The ageing analysis of these trade receivables
is as follows:

Up to three months
Three to six months

2018
£’000

5,837
1,011

6,848

2017
£’000

4,620
721

5,341

As of 31 December 2018, trade receivables of £3,788,063 (2017: £3,930,372) were impaired and an expected credit loss allowance
provided for. The amount of the allowance was £1,562,059 (2017: £1,776,000). It was assessed that a portion of the receivables is
expected to be recovered. The ageing of these receivables is as follows:

Up to three months
Three to six months
Six months or greater

2018
£’000

1,262
1,227
1,299

3,788

2017
£’000

1,031
1,480
1,419

3,930

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

15 Trade and other receivables continued
The carrying amounts of the Group’s trade and other receivables are denominated in the following currencies:

Sterling
Euro

Total

2018
£’000

2017
£’000

6,430
22,302

5,999
20,064

28,732

26,063

These are detailed as Sterling equivalent.

The adoption of IFRS 9 has not had a material impact on the Group. Movements in the Group provision for expected credit loss
allowance are as follows:

At 1 January
Increase in loss allowance recognised in the year
Receivables written off in the year as uncollectable
Unused amounts reversed

At 31 December

2018
£’000

1,776
583
(221)
(576)

2017
£’000

1,599
619
(261)
(181)

1,562

1,776

The creation and release of the expected credit loss allowance for receivables has been included in administrative expenses in the
Income Statement. Amounts charged to the allowance account are generally written off when there is no expectation of recovering
additional cash. The other classes within trade and other receivables do not contain impaired assets. The maximum exposure to
credit risk at the reporting date is the carrying value of each class of receivable mentioned above.

The carrying value of trade and other receivables approximates to fair value.

The Group does not hold any collateral as security.

16 Cash and cash equivalents

Cash at bank and in hand

The carrying value of cash at bank and in hand represents its fair value due to its short maturity.

17 Trade and other payables

Current
Trade payables
Other payables
Other taxation and social security
Accruals
Deferred income

Non-current
Other payables

2018
£’000

2017
£’000

26,110

24,652

2018
£’000

2017
£’000

4,053
2,871
11,226
1,891
2,672

3,171
2,347
10,064
1,306
2,688

22,713

19,576

2018
£’000

2017
£’000

922

1,003

Notes to the financial statements continuedfor the year ended 31 December 2018LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Amount
(provided)/recognised

Amount
(unprovided)/unrecognised

2018
£’000

470
341
—

811

2017
£’000

432
157
—

589

(1,552)
(346)

(1,539)
(291)

(1,898)

(1,830)

(1,087)

(1,241)

2018
£’000

—
—
971

971

—
—

—

971

2017
£’000

—
—
971

971

—
—

—

971

£’000

(1,241)
(104)
228
30

(1,087)

18 Deferred income tax

Deferred tax asset
Pension deficit
Decelerated capital allowances
Unrecoverable losses

Deferred tax liabilities
Pension surplus
Short-term timing differences

Net deferred tax liability

At 1 January 2018
Exchange differences
Amount credited to the Consolidated Income Statement (note 8)
Amount credited to the Consolidated Statement of Comprehensive Income

At 31 December 2018

Deferred tax is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which timing
differences will reverse, based on tax rates and laws substantively enacted at the Statement of Financial Position date applicable
to the jurisdiction in which the asset/liability is recognised. It is not anticipated that any of the deferred tax asset or liability in
respect of the pension deficit or surplus will reverse in the 12 months following the Statement of Financial Position date. Whilst
it is anticipated that an element of the remaining deferred tax assets and liabilities will reverse during the 12 months following
the Statement of Financial Position date, at present it is not possible to accurately quantify the value of all these reversals.

19 Borrowings

Non-current (more than one year but less than five years)
Bank borrowings:
– in one to two years
– between two and five years

Current (one year or less or on demand)
Bank borrowings

Total borrowings

The carrying value of borrowings approximates to its fair value.

2018
£’000

2017
£’000

2,125
5,316

7,441

—
—

—

2,125

11,125

9,566

11,125

Interest rates (including the bank’s margin) on the bank loans in existence during the year averaged 1.7% (2017: 2.3%) per annum.
Bank loans are stated net of unamortised finance arrangement costs of £79,000 (2017: £32,000), of which £61,000 (2017: £Nil) is to
be amortised after more than one year.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

19 Borrowings continued
The table below analyses the Group’s financial liabilities including interest which will be settled on a net basis into relevant maturity
groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the
table are the contractual undiscounted cash flows which have been calculated using spot rates at the relevant balance sheet date.

Financial maturity analysis

Bank borrowings:
– within one year
– in one to two years
– between two and five years

2018
£’000

2017
£’000

2,264
2,235
5,459

11,272
—
—

9,958

11,272

The estimated fair value of the interest rate agreement has been included in the Statement of Financial Position as disclosed in note 13.

The borrowings are secured by fixed and floating charges on certain assets of the Group.

The carrying amounts of the Group’s borrowings, all of which are floating rate financial liabilities, are denominated in the
following currencies:

Currency
Sterling
Euro

Weighted
average
interest
rate
2018

Total
2017
£’000

2.3%
1.5%

3,292
7,833

1.7% 11,125

Weighted
average
interest
rate
2017

2.9%
2.1%

2.3%

Total
2018
£’000

2,788
6,778

9,566

20 Retirement benefit obligations
The Group operates a number of pension schemes. Details of the major schemes are set out below.

Nu-Swift International Pension Scheme
Nu-Swift International Limited operates a funded defined benefit pension scheme, which was closed to new entrants with effect
from 1 December 2002 and to further accrual on 30 June 2007, providing benefits based on final pensionable earnings. The assets
of the scheme are held separately from those of the Group, being invested with Legal and General Investment Management. The total
pension cost of the Group is determined by an independent qualified actuary on the basis of triennial valuations using the projected
unit method. The most recent actuarial valuation as at 31 December 2017 showed that the market value of the scheme’s assets was
£17,909,000 and that the actuarial value of those assets represented 118% of the benefits that had accrued to members. The results
of the 2017 valuation have been projected to 31 December 2018 and then recalculated using the assumptions set out below
which result in a net surplus position of £4,430,000 (2017: £4,397,000). The scheme’s assets are stated at their market value
at 31 December 2018.

At 31 December 2018 the scheme had a net defined benefit surplus calculated in accordance with IAS 19 using the assumptions
set out of £4,430,000 (2017: net defined benefit surplus of £4,397,000). The surplus is recognised as it is confirmed that the Group
does have an unconditional right to a refund of surplus contributions once all pensions have been applied and the scheme winds
up. On this basis no liability for minimum funding requirements has been recognised.

The Group paid no contributions to the scheme (2017: £Nil) over the year. No further contributions were payable with effect from
1 May 2015. These payments had been in respect of the recovery plan put in place following the completion of the 2011 valuation.

An allowance has been calculated by the scheme’s actuaries in respect of GMP equalisation and disclosed as a past service
charge. The allowance has not had a material impact.

Notes to the financial statements continuedfor the year ended 31 December 2018LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

20 Retirement benefit obligations continued
Nu-Swift International Pension Scheme continued
The financial assumptions used to calculate the liabilities of the scheme under IAS 19 are:

Discount rate
Inflation rate
Salary increase rate
Increases for pensions in payment
Revaluation of deferred pensions

2018

2017

2016

2.60%
2.50–3.50%
n/a
3.40%
2.50%

2.40%
2.40–3.40%
n/a
3.30%
2.40%

2.50%
2.50–3.50%
n/a
3.40%
2.50%

Assumptions regarding future mortality experience are set based on advice, published statistics and experience in each territory.
The average life expectancy in years of a pensioner retiring at age 65 at the Statement of Financial Position date is as follows:

Male
Female

2018

21.8
23.7

The average life expectancy in years of a pensioner retiring at age 65, 20 years after the Statement of Financial Position date,
is as follows:

2017

21.9
23.8

2017

23.1
25.0

2018

22.8
24.9

Male
Female

The assets in the scheme were:

Equities
Bonds
Cash/(overdraft)

Present value of the scheme’s liabilities

Surplus in the Nu-Swift Scheme recognised in the Statement of Financial Position

Related deferred tax liability

Analysis of the amount recognised in the Income Statement

Past service charge relating to GMP equalisation

Interest credit

Total operating credit

Value at
31 December
2018
£’000

Percentage
of scheme
assets
2018

Value at
31 December
2017
£’000

Percentage
of scheme
assets
2017

—
14,510
2,693

17,203
(12,773)

4,430

(1,552)

0.0%

5,707
84.3% 12,213
(46)
15.7%

31.9%
68.3%
(0.2%)

17,874
(13,477)

4,397

(1,539)

2018
£’000

(106)

(17)

2017
£’000

—

(89)

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

20 Retirement benefit obligations continued
Movement in the defined benefit obligation over the year

Start of the year
Past service charge
Interest cost
Actuarial gain/(loss) arising from changes in financial assumptions
Actuarial gain arising from changes in demographic assumptions
Benefits paid

End of the year

Movement in the fair value of the plan assets over the year

Start of the year
Interest income
Return on assets (excluding amount included in net interest expense)
Benefits paid

End of the year

Analysis of the amount recognised in the Consolidated Statement of Comprehensive Income

Actuarial gain/(loss) on defined benefit obligation
Actual return less expected return on pension scheme assets

Gain recognised in the Consolidated Statement of Comprehensive Income

2018
£’000

2017
£’000

(13,477)
(89)
(316)
415
95
599

(13,628)
—
(334)
(137)
95
527

(12,773)

(13,477)

2018
£’000

2017
£’000

17,874
422
(494)
(599)

17,202
423
776
(527)

17,203

17,874

2018
£’000

510
(494)

2017
£’000

(42)
776

734

Sensitivity of the liability value to changes in the principal assumptions
Prior to the effect of deferred tax, the impact of a 0.1% decrease in the inflation rate would be to increase the pension surplus by
£45,000 (2017: £44,000); an increase of 0.1% in the inflation rate would decrease the surplus by £41,000 (2017: £49,000). The impact
of a 0.1% increase in the discount rate would be to increase the pension surplus by £162,000 (2017: £180,000); a decrease of 0.1%
in the discount rate would decrease the surplus by £165,000 (2017: £183,000).

Ansul Pension Scheme
Ansul S.A. operates a number of funded pension schemes, the majority of which are prescribed by the Belgian state. Included
within these is a funded pension scheme for which the majority of the Belgian employees are eligible, providing benefits based
on final pensionable earnings. The assets of the scheme are held separately from those of the Ansul Group, being invested with
Delta Lloyd Life. The total pension cost of the Ansul Group scheme is determined by an independent qualified actuary. The most
recent valuation was at 31 December 2017. The scheme’s assets are stated at their market value at 31 December 2018.

The Group paid contributions to the scheme amounting to £231,000 (2017: £180,000) over the year. There are no minimum
contribution requirements for this scheme.

The financial assumptions used to calculate liabilities of the schemes under IAS 19 are:

Discount rate
Inflation rate
Salary increase rate

2018

2017

2016

1.88%
2.00%
1.00%

1.58%
1.60%
1.00%

1.60%
2.00%
1.00%

Notes to the financial statements continuedfor the year ended 31 December 2018LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

20 Retirement benefit obligations continued
Ansul Pension Scheme continued
Assumptions regarding future mortality experience are set based on advice, published statistics and experience in each territory.
The average life expectancy in years of a pensioner retiring at age 65 at the Statement of Financial Position date is as follows:

Male
Female

2018

21.9
25.3

The average life expectancy in years of a pensioner retiring at age 65, 20 years after the Statement of Financial Position date,
is as follows:

Male
Female

The assets in the scheme were:

2018

22.0
25.4

Value at
31 December
2018
£’000

Percentage
of scheme
assets
2018

Value at
31 December
2017
£’000

Assets with guaranteed interest with insurer
Present value of the schemes’ liabilities

Deficit in the Ansul Scheme recognised in the Statement of Financial Position

Related deferred tax asset

Analysis of the amount recognised in the Income Statement

100%

2,329
(4,209)

(1,880)

470

Current service charge
Interest charge

Total operating (credit)/charge

Movement in the defined benefit obligation over the year

Start of the year
Current service cost
Interest cost
Actuarial gain/(loss) arising from changes in financial assumptions
Actuarial (loss)/gain arising from changes in demographic assumptions
Benefits paid
Exchange movement

2,152
(3,873)

(1,721)

432

2018
£’000

(22)
21

(1)

2018
£’000

(3,873)
(209)
(56)
81
(286)
188
(54)

End of the year

(4,209)

(3,873)

2017

21.9
25.3

2017

22.0
25.4

Percentage
of scheme
assets
2017

100%

2017
£’000

37
24

2017
£’000

(3,848)
(216)
(51)
(41)
318
145
(180)

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

20 Retirement benefit obligations continued
Movement in the fair value of the plan assets over the year

Start of the year
Return on assets
Actuarial (loss)/gain
Employer contributions
Benefits paid
Exchange movements

End of the year

Analysis of the amount recognised in the Consolidated Statement of Comprehensive Income

Actual return less expected return on pension scheme assets

Actuarial (loss)/gain recognised in the Consolidated Statement of Comprehensive Income

2018
£’000

2,152
35
(13)
231
(98)
22

2017
£’000

1,569
27
383
180
(84)
77

2,329

2,152

2018
£’000

(145)

2017
£’000

721

Sensitivity of the liability value to changes in the principal assumptions
Prior to the effect of deferred tax, the impact of a 0.1% increase in the inflation rate would be to increase the pension deficit by
£20,000 (2017: £22,000); a decrease of 0.1% in the inflation rate would decrease the deficit by £19,000 (2017: £20,000). The impact
of a 0.1% increase in the discount rate would be to decrease the pension deficit by £54,000 (2017: £60,000); a decrease of 0.1% in
the discount rate would increase the deficit by £60,000 (2017: £68,000).

UK stakeholder scheme
The contributions paid by the Group to the defined contribution stakeholder pension schemes in operation within the UK amounted
to £333,000 in the year ended 31 December 2018 (2017: £281,000).

Total pension costs charged to the Income Statement for all schemes in which the Group participates amounted to £1,862,000
for the year ended 31 December 2018 (2017: £1,676,000) and were wholly recognised in administrative expenses.

21 Provisions for liabilities and charges

At 1 January 2018
Movement in the year
Amount provided in the year

Provision at 31 December 2018

Current

Rectification
provision
£’000

Non-current

Rectification
provision
£’000

Environmental
provision
£’000

—
4
1

4
(4)
—

—

183
(2)
—

181

Total
£’000

187
(2)
1

186

The rectification provision relates to after sales costs. The environmental provision relates to costs associated with soil contamination.
The cost of the decontamination is expected to be spread over a number of years and the provision is based on quotes received
from contractors. The impact of discounting is considered immaterial to the amounts provided.

22 Called up share capital

Authorised
Ordinary shares of 1p each

Allotted, called up and fully paid
Ordinary shares of 1p each

2018
Number

2018
£’000

2017
Number

67,539,188

675

67,539,188

12,261,477

123

12,261,477

2017
£’000

675

123

There are no outstanding options at 31 December 2018.

The mid-market price of the Company’s shares at 31 December 2018 was £19.40 and the range during the year was £19.00 to £21.99.

Notes to the financial statements continuedfor the year ended 31 December 2018LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

22 Called up share capital continued
Share premium account

At 1 January 2018 and 31 December 2018

Capital redemption reserve

At 1 January 2018 and 31 December 2018

The capital redemption reserve has arisen following the purchase of own shares.

Non-controlling interest

At 1 January 2018
Profit in the year attributable to non-controlling interest

At 31 December 2018

£’000

344

£’000

189
113

302

The non-controlling interest has arisen following the acquisition of 75% of the share capital of Fire Industry Specialists Limited.

23 Reconciliation of operating profit to cash generated from operations

Operating profit
Depreciation of property, plant and equipment
Amortisation of intangible assets
Profit on disposal of property, plant and equipment
Exchange differences
Difference between pension charge and cash contributions
Increase in trade and other receivables
Increase/(decrease) in trade and other payables
(Decrease)/increase in provisions
Increase in inventories

Cash generated from operations

Disposal of assets

Net book value
Profit on disposal of property, plant and equipment

Proceeds

2018
£’000

2017
£’000

23,175
2,996
3,386
(98)
185
72
(560)
565
(2)
(1,334)

21,739
2,814
3,381
(78)
249
97
(1,843)
(614)
22
(585)

28,385

25,182

2018
£’000

300
98

398

2017
£’000

271
78

349

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

24 Reconciliation of movement in net funds

Cash in hand and at bank
Debt due within one year
Debt due after one year

Total

Reconciliation of increase in cash to movement in net funds

Increase in cash
Decrease in debt

Change in net debt from cash flows
Non-cash changes
Net funds at 1 January

Net funds at 31 December

At
1 January
2018
£’000

24,652
(11,125)
—

13,527

Cash
flow
£’000

1,261
1,614
—

2,875

Non-cash
items
£’000

197
7,386
(7,441)

At
31 December
2018
£’000

26,110
(2,125)
(7,441)

142

16,544

2018
£’000

1,261
1,614

2,875
142
13,527

2017
£’000

1,277
1,809

3,086
498
9,943

16,544

13,527

Non-cash changes relate to foreign exchange movements, amortisation of finance arrangement costs and the movement between
current and non-current debt in the year.

25 Commitments and contingent liabilities
The Group leases various properties and vehicles under non-cancellable operating lease agreements. The lease agreements are
between one and five years and the majority of lease agreements are renewable at the end of the lease period at market rates.

The lease expenditure charged to the Income Statement during the year is disclosed in note 7.

The future aggregate minimum lease payments under non-cancellable operating leases are as follows:

Within one year
Between two and five years inclusive
More than five years

Property

Plant, machinery
and equipment

2018
£’000

664
652
160

1,476

2017
£’000

1,021
932
—

1,953

2018
£’000

683
603
—

2017
£’000

771
987
—

1,286

1,758

The Group had no contingent liabilities, no other financial commitments and no capital commitments at 31 December 2018 (2017: £Nil).

26 Acquisitions
On 14 June 2018 the Group purchased the entire share capital of Linde Brandmateriel Aps, a company incorporated in, and which operates
in, Denmark. On 22 June 2018 the Group purchased the entire issued share capital of Blusdesign B.V. and Brandpreventie Groep B.V.,
companies incorporated in, and which operate in, the Netherlands. On 17 September 2018 the Group purchased the entire members’
interests of City Fire Protection and Maintenance Services LLP, a partnership which operates in England. On 1 November 2018 Fire
Industry Specialists Limited, which is 75% owned by LS UK Fire Group Limited, purchased the entire share capital of Amberfire
Limited, a company incorporated in, and which operates in, England.

Notes to the financial statements continuedfor the year ended 31 December 2018LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

26 Acquisitions continued
As these acquisitions are individually considered immaterial to the Group the disclosure of the book and provisional fair values
of net assets acquired is given in aggregate as follows:

Property, plant and equipment
Service contracts
Inventories
Receivables
Cash and cash equivalents
Payables

Fair value of net assets acquired
Goodwill

Total consideration

Cash and cash equivalents acquired

Net consideration

Satisfied by:

Cash
Deferred consideration

Net consideration

Book value
2018
£’000

Fair value
2018
£’000

206
—
210
1,760
390
(1,525)

1,041
—

1,041

—
3,098
—
—
—
—

3,098
1,491

4,589

Total
2018
£’000

206
3,098
210
1,760
390
(1,525)

4,139
1,491

5,630

Total
2017

53
1,157
69
729
395
(506)

1,897
104

2,001

(390)

(395)

5,240

1,606

Provisional
consideration
2018
£’000

Provisional
consideration
2017
£’000

4,274
966

5,240

1,220
386

1,606

The goodwill is attributable mainly to the skills and technical talent of the acquired companies’ workforces. The final consideration
payable is determined based on the performance of the acquired companies in their first year under Group ownership. The criteria to
measure performance are agreed with the vendors prior to acquisition. Based on the results of this comparison a deferred payment
is made. The disclosure above is based on the Group’s best estimate of the level of deferred consideration payable.

The revenue and net profit of Linde Brandmateriel Aps since the acquisition date included in the Consolidated Statement of
Comprehensive Income for the year ended 31 December 2018 were £1,150,000 and £83,000 respectively. On a pro rata basis the
revenue and profit would have been expected to be £2,123,000 and £153,000 had the acquisition taken place on 1 January 2018.

The revenue and net profit of Blusdesign B.V. and Brandpreventie Groep B.V. since the acquisition date included in the Consolidated
Statement of Comprehensive Income for the year ended 31 December 2018 were £544,000 and £40,000 respectively. On a pro rata
basis the revenue and loss would have been expected to be £1,088,000 and £80,000 had the acquisition taken place on 1 January 2018.

The revenue and net profit of City Fire Protection and Maintenance Services LLP since the acquisition date included in the Consolidated
Statement of Comprehensive Income for the year ended 31 December 2018 were £634,000 and £84,000 respectively. On a pro rata basis
the revenue and profit would have been expected to be £2,536,000 and £336,000 had the acquisition taken place on 1 January 2018.

The revenue and net profit of Amberfire Limited since the acquisition date included in the Consolidated Statement of Comprehensive
Income for the year ended 31 December 2018 were £251,000 and £47,000 respectively. On a pro rata basis the revenue and profit
would have been expected to be £1,506,000 and £188,000 had the acquisition taken place on 1 January 2018.

In addition, the Group acquired contracts from a number of companies and businesses for a total consideration of £557,000.
The Directors considered that the consideration equated to the fair value of the contracts acquired and have recognised an
intangible asset accordingly. The Group monitors contract retention rates for any indication of impairment.

Due to the integration of these companies and businesses acquired during the year into the existing businesses and operations,
the Directors are unable to determine the contribution of the acquisitions to the revenue and net profit of the Group for the year
ended 31 December 2018 nor are they able to determine what the impact on revenues and profit of the Group for the year ended
31 December 2018 would have been had the acquisitions taken place on 1 January 2018.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

27 Group undertakings
The Group wholly owns the entire issued and voting ordinary share capital of all the subsidiaries listed with the exception of Fire Industry
Specialists Limited, which is 75% owned by LS UK Fire Group Limited and its wholly owned subsidiary Amberfire Limited.

Alarm Masters S.A.
All-Protec N.V.
A.L.P.I. sarl
Amberfire Limited
Ansul B.V.
Ansul Solutions B.V.
Ansul S.A.
Ansul Belgium S.A.
APS Sprl
ASCO Extinguishers Company Limited
Barkat B.V.B.A.
Braco B.V.B.A.
Beta Fire Protection Limited
Blesberger G.m.b.H.
Blusdesign B.V.
Boensma B.V.
Braho Brandpreventie B.V.
Brandpreventie Groep B.V.
City Fire Protection and Maintenance Services LLP
DC Security B.V.B.A.
Dimex Technics S.A.
Feuerschutz Hollmann G.m.b.H.
Fire Industry Specialists Limited
Fire Protection Holdings Limited
Florian Feuerschutz G.m.b.H.
GC Fire Protection Limited
GFA Premier Limited
Hoyles Limited
Hoyles Fire & Safety Limited
Importex S.A.
Le Chimiste Sprl
Linde Brandmateriel Aps
LS UK Fire Group Limited
Ludwig Brandschutztechnik G.m.b.H.
L. W. Safety Limited
NL Brandbeveiliging B.V.
Noris Feuerschutzgerate G.m.b.H.
Nu-Swift (Engineering) Limited
Nu-Swift Brandbeveiliging B.V.
Nu-Swift International Limited
One Protect Sarl
PMP Manus G.m.b.H.
Prevent Brandbeveiliging B.V.
Pyrotec Fire Protection Limited
Record Brandbeveiliging B.V.
Security Alarm Service Company Sprl
Somati FIE N.V.
Total Fire-Stop G.m.b.H.
Tunbridge Wells Fire Protection Limited
TVF (UK) Limited

Activity

Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Intruder alarms
Fire protection
Fire protection
Fire protection
Sub-holding
Fire protection
Fire protection
Fire protection
Sub-holding
Fire protection
Fire protection
Fire protection
Fire protection
Sub-holding
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection
Fire protection

Country of registration or
incorporation and operation

Belgium
Belgium
Luxembourg
England
The Netherlands
The Netherlands
Belgium
Belgium
England
Scotland and England
Belgium
Belgium
England
Austria
The Netherlands
The Netherlands
The Netherlands
The Netherlands
England
Belgium
Belgium
Germany
England
England
Austria
England
England
England
England
Belgium
Belgium
Denmark
England
Germany
England
The Netherlands
Austria
England
The Netherlands
England
France
Austria
The Netherlands
England
The Netherlands
Belgium
Belgium
Austria
England
England

Notes to the financial statements continuedfor the year ended 31 December 2018LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

27 Group undertakings continued
The following subsidiaries have taken advantage of exemption from audit under Section 479a of the Companies Act 2006:

ASCO Extinguishers Company Limited, Beta Fire Protection Limited, Fire Protection Holdings Limited, GC Fire Protection Limited,
GFA Premier Limited, Hoyles Limited, LS UK Fire Group Limited, Premier Fire Limited, Pyrotec Fire Protection Limited, The General
Fire Appliance Co. Limited, Tunbridge Wells Fire Protection Limited and TVF (UK) Limited.

With the exception of the Parent Company’s 100% interest in Fire Protection Holdings Limited, the shares in the remaining Group
undertakings are held by subsidiary undertakings. Addresses and contact details for these subsidiaries are given inside the back
cover. LS UK Fire Group Limited’s and Fire Protection Holdings Limited’s registered address is: Premier House, Jubilee Way,
Elland HX5 9DY.

In order to comply with the Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 the Group is no longer
able to take advantage of Section 410 of the Companies Act 2006 to disclose only its principal subsidiaries in the financial statements.
Additional wholly owned subsidiaries, all of which are dormant, are:

C & T Fire Limited, FDSA Fire Protection Limited, LS Fire Group Limited, Phoenix Fire & Safety Limited, Professional Fire Protection Limited,
Cowley Fire Limited, BWH Manufacturing Limited, Fire Reliant Limited, Green Cross Limited, L & P Fire Safety Equipment Limited,
Modern Fire Extinguisher Services Limited, Pyrotec Fire Detection Limited, Nu-Swift Limited, Triangle Fire Limited, United Fire Alarms
Limited and Wilts Fire Limited all share the registered address: Premier House, Jubilee Way, Elland HX5 9DY.

Assured Fire Protection & Safety Limited, 1st Quote Fire Limited and Swift-N-Sure (Fire Appliances) Limited all share the registered
address: Unit 1.1, Festival Court, Brand Place, Glasgow G51 1DR.

MK Fire Limited, Thames Valley Fire Protection Limited, TVF Alarms Limited, TVF Systems Services Limited and Ulysses Fire Services Limited
all share the registered address: 56/69 Queen’s Road, High Wycombe HP13 6AH.

Luke & Rutland Limited and Pyrotec Fire Detection Limited share the registered address: Caburn Enterprise Park, Ringmer BN8 5NP.

Firestop Services Limited is registered at Unit 15, Cedar Parc, Lincoln Road, Doddington, Lincolnshire LN6 4RR.

All of these entities have been included within the consolidation.

28 Ultimate parent undertaking and controlling party
The Parent Company regards EOI Fire SARL, a company registered in Luxembourg, as its ultimate parent undertaking through
its 80% interest in London Security plc. The Directors regard the Eden and Ariane Trusts as the ultimate controlling parties
through their controlling interest in EOI Fire SARL and Tristar Fire Corp.

29 Related party transactions
During the year the Group incurred costs amounting to £800,473 (2017: £951,000) in respect of the Executive Directors including
the Head Office and other expenses under the Services Agreement referred to in the Directors’ Remuneration Report.

The Group recharged and was reimbursed £83,000 (2017: £82,000) in relation to the Service Agreement by Andrews Sykes.

The balance disclosed in note 15 as being due from related undertakings is with EFS Property Holdings Ltd., a company controlled
by J.G. Murray. The amount outstanding at the year end relates entirely to transactions in the year.

The Group made sales to Andrews Sykes in relation to fire protection in the year of £11,538 (2017: £10,528).

The Group made sales to fire companies in Switzerland controlled by J.G. Murray in the year of £292,920 (2017: £339,006).

The Group incurred £335,000 (2017: £253,000) of expenditure on behalf of J.G. Murray during the year, of which £59,000
(2017: £Nil) was outstanding at the year end.

The Group incurred £5,000 (2017: £52,000) of expenditure on behalf of J-J. Murray during the year. This was reimbursed in the year.

30 Post balance sheet events
Subsequent to the year end the Group has completed the acquisition of further service contracts for a total of £1,473,000 (2017: £Nil).

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Independent auditors’ report

to the members of London Security plc

Report on the audit of the parent company financial statements
Opinion
In our opinion, London Security plc’s parent company financial statements (the “financial statements”):

• give a true and fair view of the state of the parent company’s affairs as at 31 December 2018;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”,
and applicable law); and

• have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements, included within the Annual Report and Accounts (the “Annual Report”), which comprise:
the Parent Company balance sheet as at 31 December 2018; the Statement of changes in equity for the year then ended and the
notes to the financial statements, which include a description of the significant accounting policies.

Our audit approach
Overview

• Overall materiality: £530,000 (2017: £530,000), based on 1.8% of total assets.

• We performed full scope audit procedures over London Security Plc (the Parent Company

Materiality

of the Group).

• We have no key audit matters to report.

Audit
scope

Key audit
matters

The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements.
In particular, we looked at where the directors made subjective judgements, for example in respect of significant accounting estimates
that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits we also addressed
the risk of management override of internal controls, including evaluating whether there was evidence of bias by the directors that
represented a risk of material misstatement due to fraud.

Key audit matters
Key audit matters are those matters that, in the auditors’ professional judgement, were of most significance in the audit of the
financial statements of the current period and include the most significant assessed risks of material misstatement (whether or
not due to fraud) identified by the auditors, including those which had the greatest effect on: the overall audit strategy; the allocation
of resources in the audit; and directing the efforts of the engagement team. We determined that there were no key audit matters
applicable to the parent company to communicate in our report.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Report on the audit of the parent company financial statements continued
Basis for opinion continued
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements
as a whole, taking into account the structure of the parent company, the accounting processes and controls, and the industry in
which it operates.

We performed full scope audit procedures over London Security Plc (the Parent Company of the Group).

Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:

Overall materiality

How we determined it

Rationale for benchmark applied

£530,000 (2017: £530,000).

1.0% of total assets.

We believe that total assets is the primary measure used by the shareholders in
assessing the position of the entity, and is a generally accepted auditing benchmark.

We agreed with the Audit Committee that we would report to them misstatements identified during our audit above £26,750
(2017: £26,750) as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.

Conclusions relating to going concern
ISAs (UK) require us to report to you when:

• the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant
doubt about the parent company’s ability to continue to adopt the going concern basis of accounting for a period of at
least twelve months from the date when the financial statements are authorised for issue.

We have nothing to report in respect of the above matters.

However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the parent company’s
ability to continue as a going concern. For example, the terms on which the United Kingdom may withdraw from the European Union
are not clear, and it is difficult to evaluate all of the potential implications on the parent company’s trade, customers, suppliers and
the wider economy.

With respect to the Strategic Report and Report of the Directors, we also considered whether the disclosures required by the
UK Companies Act 2006 have been included.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Independent auditors’ report continued

to the members of London Security plc

Report on the audit of the parent company financial statements continued
Reporting on other information continued
Based on the responsibilities described above and our work undertaken in the course of the audit, ISAs (UK) require us also
to report certain opinions and matters as described below.

In light of the knowledge and understanding of the parent company and its environment obtained in the course of the audit,
we did not identify any material misstatements in the Strategic Report and Report of the Directors.

In preparing the financial statements, the directors are responsible for assessing the parent company’s ability to continue as a
going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless
the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.

Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:

• we have not received all the information and explanations we require for our audit; or

• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been

received from branches not visited by us; or

• certain disclosures of directors’ remuneration specified by law are not made; or

• the financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.

Other matter
We have reported separately on the group financial statements of London Security plc for the year ended 31 December 2018.

Ian Morrison (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Leeds
8 May 2019

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Parent Company balance sheet

as at 31 December 2018

Fixed assets
Tangible assets
Investments

Current assets
Debtors
Cash at bank and in hand

Creditors: amounts falling due within one year
Borrowings
Creditors
Derivative financial instruments

Net current assets/(liabilities)

Total assets less current liabilities

Creditors: amounts falling due after more than one year
Borrowings
Derivative financial instruments

Net assets

Capital and reserves
Called up share capital
Share premium account
Capital redemption reserve fund
Profit and loss account before profit for the year
Profit for the year
Dividends paid

Total shareholders’ funds

The registered number of the Company is 53417.

Notes

2018
£’000

2017
£’000

2
3

5
6
8

5
8

153
49,804

204
49,804

49,957

50,008

2,036
1,448

3,484

2,644
977

3,621

(619)
(2,078)
—

(3,292)
(1,442)
(9)

(2,697)

(4,743)

787

(1,122)

50,744

48,886

(2,169)
(8)

(2,177)

—
—

—

48,567

48,886

123
344
1
48,418
9,489
(9,808)

123
344
1
49,157
9,069
(9,808)

48,567

48,886

The notes on pages 51 to 54 are an integral part of these financial statements.

The financial statements on pages 49 to 54 were approved by the Board of Directors on 8 May 2019 and were signed on its behalf by:

J.G. Murray
Chairman
8 May 2019

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Statement of changes in equity

for the year ended 31 December 2018

Called up
share
capital
£’000

123

Share
premium
reserve
£’000

344

Capital
redemption
reserve
£’000

Profit
and loss
account
£’000

Shareholders’
funds
£’000

49,157

49,625

—

123

—

344

—

9,069

(9,808)

48,418

48,886

9,489

(9,808)

48,099

48,567

At 1 January 2017

Total comprehensive income for the year
Profit for the financial year

Contributions by and distributions to owners of the Company:
– dividends

At 1 January 2018

Total comprehensive income for the year
Profit for the financial year

Contributions by and distributions to owners of the Company:
– dividends

At 31 December 2018

123

344

The notes on pages 51 to 54 are an integral part of these financial statements.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Notes to the Parent Company financial statements

for the year ended 31 December 2018

1 Principal accounting policies
Basis of accounting
London Security plc is a public company limited by shares and incorporated and domiciled in the United Kingdom.

These financial statements were prepared in accordance with Financial Reporting Standard 102, the Financial Reporting Standard
applicable in the UK and the Republic of Ireland (“FRS 102”). The functional and presentation currency of these financial statements
is Sterling.

In these financial statements, the Company is considered to be a qualifying entity (for the purposes of this FRS) and has applied the
exemptions available under FRS 102 in respect of the following disclosures:

• reconciliation of the number of shares outstanding from the beginning to the end of the year;

• Statement of Cash Flow and related notes; and

• key management personnel compensation.

As the consolidated financial statements of London Security plc include the equivalent disclosures, the Company has also taken the
exemptions under FRS 102 available in respect of the following disclosures:

• presenting a Parent Company profit and loss account under Section 408 of the Companies Act 2006; and

• the disclosures required by FRS 102.11 “Basic financial instruments” and FRS 102.12 “Other financial instrument issues” in respect

of financial instruments not falling within the fair value accounting rules of Paragraph 36(4) of Schedule 1.

These Parent Company financial statements have been prepared on the going concern basis, under the historical cost convention
as modified by revaluation of financial liabilities held at fair value through profit and loss in accordance with the Companies Act 2006
and applicable accounting standards in the UK. The Directors have prepared these financial statements on the fundamental assumption
that the Company is a going concern and will continue to trade for at least 12 months following the date of approval of the financial
statements. In determining whether the Company’s financial statements should be prepared on a going concern basis, the Directors
have considered the factors likely to affect future performance. The Directors have reviewed trading and cash flow forecasts as part
of the going concern assessment and based on this have the expectation that the Company has adequate resources to continue in
operational existence for the foreseeable future.

A summary of the more important accounting policies, which have been consistently applied, is set out below.

Tangible fixed assets
The cost of tangible fixed assets is their purchase cost or internal production costs, together with any incidental costs of acquisition.

Depreciation is provided for on all tangible fixed assets on the straight line method at rates calculated to write off the cost or valuation
less estimated residual values over the estimated lives of the assets. The annual rates are as follows:

Share in aircraft 5%

Fixed assets are reviewed for impairment if events or changes in circumstances indicate that the carrying value may not be recoverable.
Any impairment in value is charged to the profit and loss account.

Investments
Investments in subsidiary undertakings are included at cost unless, in the opinion of the Directors, an impairment has occurred,
in which case the deficiency is provided for in and charged to the Parent Company’s profit and loss account.

Deferred tax
Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods
different from those in which they are recognised in the financial statements. Deferred tax is not recognised on permanent differences
arising because certain types of income or expense are non-taxable or are disallowable for tax, or because certain tax charges or
allowances are greater or smaller than the corresponding income or expense.

Deferred tax is provided in respect of the additional tax that will be paid or avoided on differences between the amount at which an
asset (other than goodwill) or liability is recognised in a business combination and the corresponding amount that can be deducted
or assessed for tax. Goodwill is adjusted by the amount of such deferred tax.

Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or
substantively enacted at the balance sheet date.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered
against the reversal of deferred tax liabilities or other future taxable profits.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

1 Principal accounting policies continued
Finance arrangement costs and interest rate caps
Costs of arranging bank loans and interest rate caps are treated as a deduction from the loan liability and are amortised over the lives
of the relevant loans.

Derivative financial instruments
Derivative financial instruments are recognised at fair value. The gain or loss on remeasurement to fair value is recognised immediately
in profit or loss.

Dividend distribution
Dividend distribution to the Parent Company’s shareholders is recognised as a liability in the financial statements when paid, in the
case of interim dividends, or in the period in which the dividends are approved by the Parent Company’s shareholders, in the case
of final dividends.

2 Tangible assets

Cost
At 1 January and 31 December 2018

Accumulated depreciation
At 1 January 2018
Charge for the year

At 31 December 2018

Net book amount
At 31 December 2018

At 31 December 2017

3 Investments

Cost
At 1 January and 31 December 2018

The Directors believe that the carrying value of the investments is supported by their underlying net assets.

A full list of subsidiary undertakings is provided in note 27 of the Group accounts.

4 Debtors

Amounts falling due within one year
Amounts owed by Group undertakings
Other debtors
Income tax recoverable

Share in
aircraft
£’000

1,019

815
51

866

153

204

Shares in
subsidiary
undertakings
£’000

49,804

2018
£’000

2017
£’000

1,586
59
391

2,036

2,228
—
416

2,644

Amounts owed by Group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

Notes to the Parent Company financial statements continued for the year ended 31 December 2018LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

5 Borrowings

Non-current (amounts falling due in more than one year)
Bank borrowings:
– in one to two years
– between two and five years

Current (amounts falling due within one year or on demand)
Bank borrowings

Total borrowings

2018
£’000

2017
£’000

619
1,550

2,169

619

2,788

—
—

—

3,292

Interest rates (including the bank’s margin) on the bank loans in existence during the year averaged 2.30% (2017: 2.85%) per annum.
Bank loans are stated net of unamortised finance arrangement costs of £47,000 (2017: £8,000), of which £36,000 (2017: £Nil) is to be
amortised after more than one year.

The Directors consider that the fair values of the bank loans are not materially different from their book values.

The carrying amounts of the Company’s borrowings, all of which are floating rate financial liabilities, are denominated in the
following currencies:

Currency
Sterling

6 Creditors

Amounts owed to Group undertakings
Accruals and deferred income

Weighted
average
interest
rate
2018

Total
2018
£’000

Weighted
average
interest
rate
2017

Total
2017
£’000

2,788

2.30%

3,292

2.85%

2,788

2.30%

3,292

2.85%

2018
£’000

1,941
137

2,078

2017
£’000

1,295
147

1,442

Amounts due to Group undertakings are unsecured, interest free and repayable on demand.

7 Deferred tax
The deferred tax asset comprises:

Losses

Deferred tax asset

Amount recognised

Amount unrecognised

2018
£’000

—

2017
£’000

—

2018
£’000

(971)

2017
£’000

(971)

Deferred tax is measured on a non-discounted basis at the tax rate that is expected to apply in the periods in which timing
differences will reverse, based on tax rates and laws substantively enacted at the balance sheet date, being a rate of 17%.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

8 Derivative financial instruments

Interest rate agreements

2018

2017

Assets
£’000

—

Liabilities
£’000

Assets
£’000

—

Liabilities
£’000

The Company has entered into an interest rate agreement which caps LIBOR at 1.5%. The agreement took effect from May 2018
and remains in effect until the loan is repaid in 2023. The liability represents the forecast increase in interest payable as a result of
this agreement over the remaining life of the loan at the year end. The fair value at the year end is calculated based on observable
interest rates.

9 Called up share capital

Authorised
Ordinary shares of 1p each

Allotted, called up and fully paid
Ordinary shares of 1p each

2018
Number

2018
£’000

2017
Number

2017
£’000

67,539,188

675

67,539,188

675

12,261,477

123

12,261,477

123

There were no outstanding options at 31 December 2018.

The mid-market price of the Company’s shares at 31 December 2018 was £19.40 and the range during the year was £19.00 to £21.99.

The Parent Company had no employees during the year (2017: Nil).

The remuneration paid to the Parent Company auditors in respect of the audit of the Group and Parent Company financial statements
for the year ended 31 December 2018 is set out in note 7 to the Group financial statements.

The Board is recommending the payment of a final dividend in respect of the year ended 31 December 2018 of £0.40 per ordinary
share (2017: £0.40).

10 Commitments and contingent liabilities
The Parent Company had no financial or other commitments at 31 December 2018 (2017: £Nil).

The Parent Company was party to a cross guarantee under which it guaranteed the borrowings of certain of its subsidiary undertakings.
At 31 December 2018 this guarantee amounted to £6,811,000 (2017: £7,857,000). No loss is expected to arise from this guarantee.

11 Ultimate parent undertaking and controlling party
The Parent Company regards EOI Fire SARL, a company registered in Luxembourg, as its ultimate parent undertaking through its
80% interest in London Security plc. The Directors regard the Eden and Ariane Trusts as the ultimate controlling parties through their
controlling interest in EOI Fire SARL and Tristar Fire Corp.

12 Related party transactions
During the year the Company incurred costs amounting to £601,244 (2017: £759,000) in respect of the Executive Directors,
including the Head Office and other expenses under the Services Agreement referred to in the Directors’ Remuneration Report.

The Company recharged and was reimbursed £83,000 (2017: £82,000) in relation to the Service Agreement by Andrews Sykes.

The Company incurred £335,000 (2017: £253,000) of expenditure on behalf of J.G. Murray during the year, of which £59,000
(2017: £Nil) was outstanding at the year end.

The Company incurred £5,000 (2017: £52,000) of expenditure on behalf of J-J. Murray during the year. This amount was reimbursed
in the year.

The Company has taken advantage of the exemption available under FRS 102 “Related party disclosures” from disclosing transactions
between related parties within the London Security plc group of companies.

Notes to the Parent Company financial statements continued for the year ended 31 December 2018LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Notice of Annual General Meeting

NOTICE IS GIVEN THAT the Annual General Meeting of London Security plc (the “Company”) will be held at 2 Eaton Gate,
London SW1W 9BJ, on 18 June 2019 at 2 pm for the following purposes:

You will be asked to consider the following resolutions as ordinary resolutions:

1. To receive the financial statements for the year ended 31 December 2018 and the Reports of the Directors and auditors

and the Directors’ Remuneration Report for that year.

2. To re-elect J-J. Murray as a Director, who retires by rotation under article 23.2 of the Company’s articles of association.

3. To re-elect X. Mignolet as a Director, who retires by rotation under article 23.2 of the Company’s articles of association.

4. To re-elect M-C. Leon as a Director, who retires by rotation under article 23.2 of the Company’s articles of association.

5. To declare a final dividend in respect of 2018 of £0.40 per ordinary share.

6. That PwC LLP be re-appointed as auditors of the Company to hold office from the conclusion of this Meeting until the

conclusion of the next Annual General Meeting at which accounts are laid before the Company and that its remuneration
be fixed by the Directors.

That the Directors be generally and unconditionally authorised in accordance with Section 549 of the Companies Act 2006
(the “Act”) to exercise all the powers of the Company to allot relevant securities (as defined in Section 550 of the Act) up to an
aggregate nominal value equal to the whole of the authorised but unissued share capital of the Company immediately following
the passing of this resolution provided that such authority shall (unless and to the extent previously revoked, varied or renewed
by the Company in general meeting) expire at the conclusion of five years from the date this resolution is passed provided that
such authority shall allow the Company to make an offer or enter into an agreement which would or might require relevant
securities to be allotted after the expiry of such authority and the Directors may allot relevant securities in pursuance of any
such offer or agreement as if the authority conferred by this resolution had not expired.

You will be asked to consider the following resolutions as special resolutions:

8. That, subject to the passing of resolution 7 above, the Directors be and are empowered pursuant to Section 570 of the Act to

allot equity securities (within the meaning of Section 564 of the Act) of the Company for cash pursuant to the authority conferred
by resolution 7 above as if Section 561 of the Act did not apply to such allotment, provided that this power shall be limited to:

(i)

the allotment of equity securities in connection with or pursuant to an offer by way of rights to the holders of ordinary shares
and other persons entitled to participate in such offer in proportion (as nearly as may be) to their respective holdings of ordinary
shares, subject only to such exclusions or other arrangements as the Directors may consider necessary or expedient to deal
with fractional entitlements or legal or practical problems under the laws of any territory or the regulations or requirements of
any regulatory body or any stock exchange in any territory; and

(ii) the allotment (other than pursuant to (i) above) of equity securities up to an aggregate nominal amount of £6,131 and such
power shall expire on the date of the next Annual General Meeting of the Company or 15 months after the date of the passing
of this resolution (whichever is the earlier) but so that the Company may before such expiry make an offer or agreement
which would or might require equity securities to be allotted after such expiry and the Directors may allot equity securities
pursuant to such an offer or agreement as if the power conferred by this resolution had not expired.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Notice of Annual General Meeting continued

9. That the Company be and is generally and unconditionally authorised for the purposes of Section 701 of the Act to make one or
more market purchases (as defined in Section 701(2) of the Act) on the London Stock Exchange of ordinary shares of 1 pence each
in the capital of the Company (“ordinary shares”) provided that:

(i)

the maximum aggregate number of ordinary shares authorised to be purchased is 500,000 shares;

(ii) the minimum price which may be paid for such shares is 1 pence per share;

(iii) the maximum price (exclusive of expenses) which may be paid for such shares is not more than 5% above the average of the
middle market quotations for the Company’s ordinary shares derived from the London Stock Exchange Daily Official List for the
five business days immediately preceding the day on which the purchase of the ordinary shares is contracted to take place;

(iv) the authority conferred shall expire at the conclusion of the next Annual General Meeting of the Company or 15 months after

the passing of this resolution (whichever is the earlier); and

(v) the Company may make a contract to purchase its own shares under the authority conferred prior to the expiry of such

authority which will or may be executed wholly or partly after the expiry of such authority and may make a purchase of its
own shares in pursuance of any such contract.

By order of the Board

R. Pollard
Company Secretary
8 May 2019

Registered office
Premier House
2 Jubilee Way
Elland
West Yorkshire
HX5 9DY

Notes
1. If you are a member of the Company you are entitled to appoint one or more proxies to attend, speak and vote at the Meeting

and you should have received a form of proxy with the Notice of Meeting. You can appoint a proxy using the procedures set out
in these notes and the notes in the form of proxy.

2. A proxy does not need to be a member of the Company but must attend the Meeting to represent you. Details of how to appoint
the Chairman of the Meeting or another person as your proxy using the form of proxy are set out in the notes to the form of proxy.

3. You may appoint more than one proxy provided each proxy is appointed to exercise rights attached to different shares. You may
not appoint more than one proxy to exercise rights attached to any one share. To appoint more than one proxy, fill out a copy of the
accompanying form of proxy for each proxy. Multiple proxy appointments should be returned in the same envelope.

4. A vote withheld is not a vote in law, which means that the vote will not be counted in the calculation of votes for or against the

resolution. If no voting indication is given, your proxy will vote or abstain from voting at his or her discretion. Your proxy will vote
(or abstain from voting) as he or she thinks fit in relation to any other matter which is put before the Meeting.

Appointment of proxy using hard copy proxy form
5. The notes to the form of proxy explain how to direct your proxy on how to vote on each resolution or withhold their vote. To appoint

a proxy using the form of proxy, the form must be:

(a) completed and signed;

(b) sent or delivered to Nu-Swift International Limited, Premier House, 2 Jubilee Way, Elland HX5 9DY; and

In the case of a member which is a company, the form of proxy must be executed under its common seal or signed on its behalf by
an officer of the company or an attorney for the company. Any power of attorney or any other authority under which the form of proxy
is signed (or a duly certified copy of such power or authority) must be included with the form of proxy.

Appointment of proxy by joint members
6. In the case of appointment of a proxy by joint shareholders, the signature of any one of them will suffice, but if a holder other

than the first-named holder signs, it will help the registrars if the name of the first-named holder is given.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Notes continued
Changing proxy instructions
7.

To change your proxy instructions, simply submit a new proxy appointment using the methods set out above. Note that the
cut-off time for receipt of proxy appointments (see above) also applies in relation to amended instructions; any amended proxy
appointment received after the relevant cut-off time will be disregarded.

If you submit more than one valid proxy appointment, the appointment received last before the latest time for the receipt of
proxies will take precedence.

Termination of proxy appointments
8. In order to revoke a proxy instruction you will need to inform the Company by sending a signed hard copy notice clearly stating
your intention to revoke your proxy appointment to Nu-Swift International Limited, Premier House, 2 Jubilee Way, Elland HX5 9DY.
In the case of a member which is a company, the revocation notice must be executed under its common seal or signed on its
behalf by an officer of the company or an attorney for the company. Any power of attorney or any other authority under which
the revocation notice is signed (or a duly certified copy of such power or authority) must be included with the revocation notice.

The revocation notice must be received no later than 48 hours before the Meeting.

If you attempt to revoke your proxy appointment but the revocation is received after the time specified then, subject to the
paragraph directly below, your proxy appointment will remain valid.

Appointment of a proxy does not preclude you from attending the Meeting and voting in person. If you have appointed a proxy
and attend the Meeting in person, your proxy appointment will automatically be terminated.

Issued shares and total voting rights
9. As at 11 am on 8 May 2019, the Company’s issued share capital comprised 12,261,477 shares of 1 pence each. Each ordinary
share carries the right to one vote at a general meeting of the Company and, therefore, the total number of voting rights in the
Company as at 11 am on 8 May 2019 was 12,261,477.

Documents on display
10. The register of Directors’ interests will be available for inspection at the registered office of the Company from 29 April 2019

until the time of the Meeting and for at least 15 minutes prior to the Meeting and during the Meeting.

Communication
11. Except as provided above, members who have general queries about the Meeting should use the following method

of communication (no other methods of communication will be accepted):

• calling 01422 372852.

You may not use any electronic address provided either:

(a) in this Notice of Annual General Meeting; or

(b) in any related documents (including the form of proxy),

to communicate with the Company.

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Group companies

The United Kingdom
Asco Extinguishers Company Limited
Unit 1.1
Festival Court
Brand Place
Glasgow G51 1DR

Tel:
Email:
Website:

0141 427 1144
customer.service@asco.uk.com
www.asco.uk.com

Beta Fire Protection Limited
Unit 18
Western Road Industrial Estate
Stratford-upon-Avon
Warwickshire CV37 0AH

Tel:
Email:
Website:

01789 292 050
info@betafire.co.uk
www.betafireprotection.com

City Fire Protection and Maintenance Services LLP
172a Selsdon Road
South Croydon
Surrey CR2 6PJ

Tel:
Email:
Website:

0208 649 7766
admin@cityfire.co.uk
www.cityfire.co.uk

Firestop Services Limited
Unit 15
Cedar Parc
Lincoln Road
Doddington
Lincolnshire LN6 4RR

Tel:
Email:
Website:

01507 723 322
enquiries@fire-stop.co.uk
www.firestopservices.co.uk

Fire Industry Specialists Limited
Unit 15
Cedar Parc
Lincoln Road
Doddington
Lincolnshire LN6 4RR

01507 522 466
enquiries@fisltd.co.uk
www.fisltd.co.uk

01673 885 229
info@amber-fire.co.uk
www.amber-fire.co.uk

Tel:
Email:
Website:

Amberfire Limited
Unit 15
Cedar Parc
Lincoln Road
Doddington
Lincolnshire LN6 4RR

Tel:
Email:
Website:

GC Fire Protection Limited
Premier House
Jubilee Way
Elland
West Yorkshire HX5 9DY

Tel:
Email:
Website:

0208 391 7310
customer.service@gcfireprotection.co.uk
www.gcfireprotection.co.uk

GFA Premier Limited
Premier House
Jubilee Way
Elland
West Yorkshire HX5 9DY

Tel:
Email:

01422 377 521
customer.service@gfapremier.co.uk

Hoyles Fire & Safety Limited
Premier House
Jubilee Way
Elland
West Yorkshire HX5 9DY

Tel:
Email:
Website:

01422 314 351
customer.service@hoyles.co.uk
www.hoyles.co.uk

L. W. Safety Limited
59/69 Queens Road
High Wycombe
Buckinghamshire HP13 6AH

Tel:
Email:
Website:

01422 314 350
customer.service@lwsafety.co.uk
www.lwsafety.co.uk

MK Fire Limited
59/69 Queens Road
High Wycombe
Buckinghamshire HP13 6AH

Tel:
Email:
Website:

01494 769 744
customer.service@mkfire.co.uk
www.mkfire.co.uk

Nu-Swift International Limited
Nu-Swift (Engineering) Limited
Premier House
Jubilee Way
Elland
West Yorkshire HX5 9DY

Tel:
Email:
Website:

01422 372 852
customer.service@nu-swift.co.uk
www.nu-swift.co.uk

Pyrotec Fire Protection Limited
Caburn Enterprise Park
Ringmer
East Sussex BN8 5NP

Tel:
Email:
Website:

0800 634 9953
sales@pyrotec.co.uk
www.pyrotec.co.uk

Tunbridge Wells Fire Protection Limited
Caburn Enterprise Park
Ringmer
East Sussex BN8 5NP

Tel:
Email:
Website:

01825 767 600
customer.service@twfpltd.co.uk
www.twfpltd.co.uk

TVF (UK) Limited
59/69 Queens Road
High Wycombe
Buckinghamshire HP13 6AH

Tel:
Email:
Website:

01494 450 641
customer.service@tvfltd.co.uk
www.tvfltd.co.uk

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Belgium
Alarm Masters S.A.
50, Z.I. Research Park
B-1731 Zellik

Tel:
Email:
Website:

All-Protec N.V.
Bogaertstraat 16
9910 Knesslare

Tel:
Email:

Ansul S.A.
Ansul Belgium S.A.
Industrialaan 35
B-1702 Groot-Bijgaarden

00 32 5237 3409
info@alarmmasters.be
www.alarmmasters.be

00 32 9375 2044
info@all-protec.be

Tel:
Email:
Website:

00 32 2467 7211
mail@ansul.be
www.ansul.be

Assurance Protection Service Sprl
Avenue Mercator 1
1300 Wavre

Tel:
Email:
Website:

00 32 7187 7504
info@apsprotectionincendie.be
www.apsprotectionincendie.be

Barkat B.V.B.A.
Ottergemsesteenweg 166
9000 Gent

Tel:
Website:

00 32 9221 3838
www.barkat.be

Dimex Technics S.A.
42 Rue de l’Eglise
4710 Lontzen Herbesthal

Tel:
Email:

00 32 8789 0401
info@dimex-technics.be

Importex S.A.
42 Rue de l’Eglise
4710 Lontzen Herbesthal

Tel:
Email:

00 32 8788 0242
info@importex.be

Security Alarm Service Company Sprl
42 Rue de l’Eglise
4710 Lontzen Herbesthal

Braco B.V.B.A.
Affligemdreef12
9300 Aalst

Tel:
Email:

DC Security B.V.B.A.
Vaarstraat 10
2235 Hulshout

Tel:
Email:
Website:

Luxembourg
A.L.P.I. sarl
10 Rue Robert Krieps
4702 Petange

Tel:
Email:
Website:

The Netherlands
Ansul B.V.
Ansul Solutions B.V.
Platinastraat 15
8211 AR Lelystad

Tel:
Email:
Website:

00 32 5321 4570
info@bracofireprotection.be

00 32 1522 5570
info@dcsecurity.be
www.dcsecurity.be

00 352 2631 3013
alpi@pt.lu
www.alpi.lu

00 31 320 240864
info@ansul.nl
www.ansul.nl

Boensma Brandbeveiliging B.V.
Zutphenstraat 6
7575 EJ Oldenzaal

Tel:
Website:

00 31 541 588030
www.boensmabrandbeveiliging.nl

Nu-Swift Brandbeveiliging B.V.
Ringoven 45
6826 TP Arnhem

Tel:
Email:
Website:

00 31 263 630330
info@nu-swift.nl
www.nu-swift.nl

Incorporating Couwenberg Noodverlichting
Ringoven 45
6826 TP Arnhem

Tel:
Email:
Website:

00 31 402 220933
couwenberg.noodverlichting@hetnet.nl
www.couwenbergnoodverlichting.nl

Tel:
Email:
Website:

Somati FIE N.V.
Industrielaan 19a
9320 Erembodegem

Tel:
Email:
Website:

Le Chimiste Sprl
Avenue Mercator 1
1300 Wavre

Tel:
Email:

00 32 8645 6789
info@securityalarmservice.be
www.securityalarmservice.be

NL Brandbeveiliging B.V.
Petunialaan 1D
5582 HA Waalre

00 32 5385 2222
info@somatifie.be
www.somatifie.be

00 32 1086 8419
info@lechimiste.be

Tel:
Email:
Website:

00 40 248 2196
info@nlbrandbeveiliging.nl
www.nlbrandbeveiliging.nl

Prevent Brandbeveiliging B.V.
Maasdijkseweg 107
2291 PJ Wateringen

Tel:
Email:
Website:

00 31 174 526700
info@prevent.brandbeveiliging.nl
www.preventbrandbeveiliging.nl

LONDON SECURITY PLC ANNUAL REPORT AND ACCOUNTS 2018

Group companies continued

Noris Feuerschutzgeraete G.m.b.H.
Baumkircherstrasse 2
8020 Graz

Tel:
Email:
Website:

00 43 316 71 18 21
zentrale@noris.at
www.noris.at

P.M.P. Feuerlöschgeräte Produktions- und Vertriebsges.m.b.H
Waltendorfer Hauptstrasse 5
8010 Graz

Tel:
Email:
Website:

00 43 316 46 15 66
office@pyrus-pmp.at
www.pyrus-pmp.at

Florian Feuerschutz G.m.b.H.
Dorf 19
5732 Mühlbach im Pinzgau

Tel:
Email:
Website:

France
One Protect sarl
Z.I. Sainte Agathe
Rue Lavoisier
57192 Florange

Tel:
Email:
Website:

00 43 6566 7450
office@feuerschutz.at
www.feuerschutz.at

00 33 382 59 32 40
contact@oneprotectsarl.com
www.oneprotectsarl.com

Germany
LUDWIG Brandschutztechnik G.m.b.H.
Gewerbestrasse 2
D-24392 Suederbrarup

Tel:
Email:

00 49 4641 8242
info@brandschutztechnik-ludwig.de

IFH Feuerschutz Hollmann G.m.b.H.
Ihmerter Strasse 211
58675 Hemer

Tel:
Email:
Website:

00 49 2372 81066
info@feuerschutz-hollmann.de
www.feuerschutz-hollmann.de

The Netherlands continued
Record Brandbeveiliging B.V.
Oostergracht 24
3763 LZ Soest

Tel:
Email:
Website:

00 31 356 027966
info@recordbrandbeveiliging.nl
www.recordbrandbeveiliging.nl

Braho Brandpreventie B.V.
Maasdijkseweg 107
2291 PJ Wateringen

Tel:
Email:
Website:

Blusdesign B.V.
Bergweg 35 b
3904 HL Veenendaal

Tel:
Email:
Website:

Brandpreventie Groep B.V.
Daalderweg 22
507 DT Zaandam

00 31 793 410708
info@braho.nl
www.braho.nl

00 31 318 508 369
info@blusdesign.com
www.blusdesign.com

Tel:
Email:
Website:

0031 75 631 5558
info@brandpreventiegroep.nl
www.brandpreventiegroep.nl

Denmark
Linde Brandmateriel Aps
Industrivej 51 A
4000 Roskilde

Tel:
Email:
Website:

33313100
lindebrand@lindebrand.dk
www.lindebrand.dk

Austria
Total Fire-Stop Brandschutztechnik G.m.b.H.
Tillmanngasse 5
1220 Wien

Tel:
Email:
Website:

00 431 259 36310
info@total.at
www.total.at

Blesberger Ges.m.b.H.
Hasnerstrasse 12
A-4020 Linz

Tel:
Website:

0043 732 73 32 34
www.blesberger.at

London Security plc
Premier House
2 Jubilee Way
Elland
West Yorkshire
HX5 9DY