A leader
in Europe’s
fire security
industry.
London Security plc
Annual Report and Accounts 2021
London
Security plc
Each year we provide fire protection for over
280,000 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 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.
More information at londonsecurity.org
STRATEGIC REPORT
•
CORPORATE GOVERNANCE
•
FINANCIAL STATEMENTS
Highlights
IN THIS REPORT
OUR EUROPEAN GROUP BRANDS
Strategic report
01 Financial highlights
01 Our European Group brands
02 Chairman’s statement
04 Financial review
06 Strategic report
Governance
08 Directors and Company advisers
10 Report of the Directors
13 Directors’ remuneration report
Financial statements
14
Independent auditor’s report
21 Consolidated income statement
22
Consolidated statement of
comprehensive income
23 Consolidated statement of changes in equity
24 Consolidated statement of financial position
25 Consolidated statement of cash flows
26 Notes to the financial statements
58 Parent Company balance sheet
59
60
Parent Company statement of changes
in equity
Notes to the Parent Company
financial statements
64 Notice of Annual General Meeting
67 Group companies
®
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.
FINANCIAL HIGHLIGHTS
Earnings per share
Operating profit
Revenue
162.4p
+11.5%
4
.
2
6
1
6
.
5
4
1
7
.
3
3
1
8
.
5
3
1
7
.
6
1
1
£27.2m
+10.1%
2
.
4
2
7
.
4
2
2
.
7
2
2
.
3
2
7
.
1
2
£166.6m
+9.1%
9
.
6
4
1
7
.
2
5
1
6
.
6
6
1
7
.
7
3
1
9
.
5
2
1
17
18
19
20
21
17
18
19
20
21
17
18
19
20
21
Annual Report and Accounts 2021 – London Security plc
01
Chairman’s statement
J.G. Murray, Chairman
FINANCIAL HIGHLIGHTS
Financial highlights of the audited
results for the year ended
31 December 2021 compared
with the year ended 31 December
2020 are as follows:
l revenue of £166.6 million
(2020: £152.7 million);
l operating profit of £27.2 million
(2020: £24.7 million);
l profit for the year of £20.0 million
(2020: £18.0 million);
l cash of £35.7 million
(2020: £37.5 million);
l earnings per share for the year
of £1.62 (2020: £1.46); and
Trading review
The financial highlights illustrate that
the Group’s revenue increased by
£13.9 million (9.1%) to £166.6 million
and operating profit increased by
£2.5 million (10.1%) to £27.2 million.
These results reflect:
l a good response to the impact of
Covid-19. Many of our businesses
were severely hampered by Covid-19
throughout 2020, but the easing
of restrictions in 2021 allowed our
businesses to capitalise on the
rebound in the economies in which
we operate;
l the positive impact of acquisitions
in 2021 in the United Kingdom,
Denmark, Belgium, France
and Germany;
l a dividend per share of £0.80
l improved performance from our
(2020: £0.60).
service business in continental Europe;
l continued improvement from newer
service offerings (e.g. emergency
lights and passive fire protection); and
l the movement in the Euro to Sterling
average exchange rate, which had
an adverse effect of £3.4 million on
reported revenue and £0.7 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 acquired established security
businesses and has grown its presence
in Denmark, the United Kingdom,
Belgium, the Netherlands, Germany and
France with the acquisition of service
contracts from smaller well-established
businesses for integration into the
Group’s existing subsidiaries.
Management and staff
2021 was a year in which the staff were
required to operate under challenging
conditions and, on behalf of the
shareholders, I would like to express
thanks and appreciation for their
contribution as essential service
providers. The health and wellbeing of
our people is our highest priority.
The Group recognises that we can only
achieve our aims with talented and
dedicated colleagues who provide
outstanding customer service in every
area of the business.
Dividends
A final dividend in respect of 2020 of
£0.40 per ordinary share was paid to
shareholders on 9 July 2021. An interim
dividend in respect of 2021 of £0.40 per
ordinary share was paid to shareholders
on 26 November 2021. The Board is
recommending the payment of a final
dividend in respect of 2021 of £0.42 per
ordinary share to be paid on 8 July 2022
to shareholders on the register on
10 June 2022. The shares will be
marked ex-dividend on 9 June 2022.
02
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS Covid-19 impact assessment
The Group is responsible for maintaining,
manufacturing and supplying fire
protection and fire suppression
equipment throughout Europe and has
been designated as essential contractor
status by a number of our clients
including care, health, housing and food
production services. It was essential that
we continued to meet our obligations
and continued to operate from our
factories and that our field-based
service engineers continued to visit our
customers’ sites for essential responsive
and planned maintenance.
In 2021 there was largely a return to
normality in our business although
there were still some restrictions on our
operations in some countries to help
reduce transmission. The high level of
business failures predicted by some
commentators did not occur. We must
be prepared for further disruption
should further waves materialise in any
of the countries in which we operate.
During 2021 the Group traded strongly
despite the interruptions caused by varying
levels of temporary restrictions imposed by
the governments of the countries in which
we operate. This reflects the essential
nature of the services we provide. At the
date of this report we have a full service
force in the field and have experienced a
strong start to 2022. The experience of
2021 shows the resilience of our business.
Future prospects
The London Security Group has a
healthy balance sheet, strong cash
reserves and a track record for good
cash generation. The Board therefore
considers that the Group is well placed
to capitalise on the increase in demand
we are seeing for our products and
services. The Group plans to continue
to grow through acquisitions.
Annual General Meeting
The Annual General Meeting (“AGM”)
will be held at 2 Jubilee Way, Elland, West
Yorkshire HX5 9DY, on 22 June 2022
at 11.30 am. On 21 February 2022
the UK government announced the
end of restrictions in response to
Covid-19. The Company confirms that
shareholders are able to attend in person
should they wish to do so. However,
we strongly encourage shareholders
to vote on all resolutions by completing
the enclosed form of proxy for use at
that Meeting, which you are requested to
return in accordance with the instructions
on the form.
J.G. Murray
Chairman
17 May 2022
Annual Report and Accounts 2021 – London Security plc
03
Financial review
IN SUMMARY
l Our acquisitive strategy continues
to add to Group profitability.
l The fire security market
is experiencing increased
competition and downward
pressure on prices.
l We are experiencing cost
increases across all our
purchases which is putting
downward pressure on margins.
l We will continue to concentrate
on the highest levels of customer
service to mitigate this.
Consolidated Income Statement
The Group’s revenue increased by
£13.9 million (9.1%) to £166.6 million.
Operating profit increased by £2.5 million
(10.1%) to £27.2 million. These results
include the adverse movement in the
Euro to Sterling average exchange rate,
which has increased from 1.13 to 1.16.
If the 2021 results from the European
subsidiaries had been translated at
2020 rates, revenue would have been
£170.0 million instead of £166.6 million,
which would represent an increase of
11.3% on the prior year. On the same
basis, operating profit would have been
£27.9 million instead of £27.2 million,
an increase of 13.0% compared to 2020.
Although the business demonstrated a
resilient performance in 2020 in the face of
severe restrictions as a result of Covid-19,
there has been a strong rebound in 2021
in the face of reducing restrictions which
will account for a significant portion
of the increase in turnover. Similarly,
reduced restrictions in 2021 allowed our
businesses to actively manage increased
productivity and improve operating profit.
Our acquisition programme was also
interrupted by Covid-19 in 2020 with only
one acquisition being made. In 2021 there
was a £2.5 million increase in revenue
generated by new subsidiaries acquired
by the Group and detailed in note 27. 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.
Net finance costs have increased by
£53,000 compared to last year. This is
due to a decrease in finance income as
finance costs remain unchanged. The
decrease in finance income reflects a
reduction in the return on the surplus in
the UK defined benefit scheme.
The Group’s effective income tax rate
of 26% is above the UK corporation
tax rate of 19% as most of the expense
is incurred in jurisdictions where the
rate is higher.
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 ended the year with cash
of £35.7 million (2020: £37.5 million).
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 multi-currency term
loan denominated as £3 million in Sterling
and €8 million in Euros. The facility is
being repaid evenly over five years.
The total of loans outstanding at the year
end was £3.7 million (2020: £5.7 million).
Included in the total figure above
are loans of £0.4 million which have
been recognised on the acquisition
of subsidiary undertakings in the year.
These are set to be repaid equally over
the next six years.
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.
04
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS Key risks and uncertainties
The Group’s key risks and uncertainties
are discussed in the Strategic Report.
Covid-19 impact assessment
Please refer to the Chairman’s Statement.
Regarding the interest risk, the Group has
entered into interest rate agreements
capping SONIA at 1.38% 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.
The Sterling agreement had been capped
with reference to LIBOR at 1.50%; this
was terminated on transition to SONIA
on 31 January 2022. There is no capping
agreement in respect of £0.4 million of
loans recognised on the acquisition of
subsidiary undertakings in the year.
Segmental reporting
The chief operating decision maker
(“CODM”) for the London Security Group
has been identified as the executive
Board as ultimately this function is
responsible for the allocation of resources
and assessing the performance of the
Group’s business units. The internal
reporting provided to the CODM is a
combination of consolidated financial
information and detailed analysis by
brand. The management information
on which the CODM makes its decisions
has been reviewed and is deemed to be
the consolidated result for the Group.
The Group’s companies in different
European countries operate under similar
economic and political conditions with
no different significant risks associated
with any particular area and no exchange
control risks and the Group’s operations
are managed on a Pan-European basis
with close operational relationships
between subsidiary companies. In
addition, the nature of products, services,
production and distribution is consistent
across the region. Accordingly, the
Directors have concluded that under
IFRS 8 the Group operates in a single
geographical and market segment
and that there is a single operating
segment for which financial information
is regularly reviewed by the CODM.
Annual Report and Accounts 2021 – London Security plc
05
Strategic report
Principal activities
London Security plc is an investment
holding company and its Board
co-ordinates the Group’s activities.
The principal activities of the Group are
the manufacture, sale and rental of fire
protection equipment and the provision
of associated maintenance services.
Business model
The Group is a leader in Europe’s
fire security industry. We provide fire
protection through our local presence
in the United Kingdom, Belgium,
the Netherlands, Austria, France,
Germany, Denmark and Luxembourg.
More detail on our revenue streams
can be found in the revenue recognition
section of our accounting policies.
The Group’s services and products
are commercialised through well
and long-established brands such as
Nu-Swift, Ansul, Premier and Master.
The unique styling of our products
makes them immediately recognisable
to both the industry and customers alike.
The Group aims to achieve the highest
levels of service and product quality
through continued training of our
employees to the most stringent servicing
standards and the development of the
highest performance-rated fire products.
The Group continues to build on its
reputation for service excellence and
quality to develop a “safety solutions”
business with a well-diversified and
loyal customer base.
Business review and results
The Consolidated Income Statement
shows a profit attributable to equity
shareholders of the Parent Company for
the year ended 31 December 2021 of
£19.9 million (2020: £17.9 million). The
Group’s results are discussed in detail
in the Financial Review. The Group paid
dividends in the year of £9,807,000
comprising a final dividend in respect of
the year ended 31 December 2020 of
£0.40 per ordinary share and an interim
dividend of £0.40 per ordinary share in
respect of the year ended 31 December
2021. The Board is recommending the
payment of a final dividend in respect
of the year ended 31 December 2021
of £0.42 per ordinary share. The Group
ended the year with net assets of
£131.7 million (2020: £126.1 million).
Key performance indicators
Given the straightforward nature of
the business, the Company’s Directors
are of the opinion that the analysis of
revenue, operating profit and earnings
per share are the appropriate KPIs for
an understanding of the development
and performance of the business.
The analysis of these KPIs is included
in the Chairman’s Statement and the
Financial Review.
S172 statement
The Board believes that the presence
and requirements of a longstanding
controlling shareholder help focus
the Group’s strategy on long-term
shareholder value creation. Decisions
are taken bearing in mind the effect on
long-term growth in revenue, operating
profit and earnings per share.
Our employees are vital in delivering
the highest levels of service in order
to mitigate the downward pressure on
prices in our market. We involve and
listen to employees to maintain strong
employee engagement and retain
talented people. We have a number of
employee representative groups across
Europe to facilitate this. Investment in
our workforce through ongoing training
is seen as essential to keep up to date
with evolving legislation and protect the
business from competition.
During the year, the Group has continued
to adapt and respond to the impact of the
Covid-19 pandemic in the following ways:
The Directors have engaged on a regular
basis with all staff to keep them up to
date with our response to the pandemic
and the progress of the business.
06
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS The Group has taken precautions to
ensure that servicing, manufacturing
and office functions can continue in
a Covid safe environment through
implementing social distancing measures
on its premises and providing suitable
sanitising products and personal
protective equipment to all staff. This
has allowed the Group to continue to
meet the needs of its customers.
The Directors recognise the need
to foster business relationships with
suppliers and customers. We aim
to have an open, constructive and
effective relationship with all suppliers,
including site visits by our staff to ensure
supply chain sustainability, responsible
sourcing and supply chain resilience.
The Directors consider the impact of the
Group’s operations on the environment.
In recent years many of our product
innovations have been focused on
limiting our environmental impact.
We have a long list of accreditations,
including ISO 9001 and ISO 14001.
The interests of different stakeholders
may not always be totally compatible.
Therefore, the Group has to weigh
up the needs and requirements of all
stakeholders and attempt to find the right
balance where decisions may affect more
than one stakeholder. The Group remains
ethical in its dealings with stakeholders
and attempts to keep stakeholders
informed of relevant business decisions.
The likely consequences of all our
long-term decision making is part of our
ongoing management process.
The culture of the business is one of
support and inclusiveness with the aim
of ensuring our business is sustainable
in the long run. We aim to be an equal
opportunities employer and deal fairly
with all stakeholders. Robust procedures
are in place for conflict resolution.
To maintain a reputation for high
standards of business conduct our
website, www.londonsecurity.org,
explains our approach to the ten
principles set out in Section 3 of the
Quoted Companies Alliance Corporate
Governance Code issued in 2018.
To limit the effect of the majority
shareholder, the Parent Company and
EOI Fire SARL entered into a Services
Agreement dated 10 December 1999
in which EOI Fire SARL provided certain
assurances to the Parent Company with
regard to its relationship with the Parent
Company. The agreement confirms that
the business and affairs of the Parent
Company shall be managed by the
Board in accordance with the Parent
Company’s Memorandum and articles
of association and with applicable laws
and all relevant statutory provisions
for the benefit of the shareholders as
a whole. Any transactions or other
relationships between any member of
the EOI Fire SARL group and the Parent
Company would be at arm’s length and
on a normal commercial basis. The
Directors declare their interest and take
no part in decisions where appropriate.
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, rising input
prices, 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 exit of the United Kingdom from 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. No United
Kingdom subsidiaries have customers in
the Eurozone and no Eurozone subsidiaries
have customers in the United Kingdom.
The supply of components is sourced from
China and is expected to be unaffected.
The Group has considered and concluded
that there is no impact to the Group
from the conflict in Ukraine.
The Group has considered climate
related risks and concluded this is not
a key risk area for the Group.
Foreign currency and interest rate risks
are discussed in the Financial Review.
Covid-19 impact assessment
Please refer to the Chairman’s
Statement.
Future developments
Competition in our market looks set
to continue. However, we continue
to believe that the Group’s well-
established business model and solid
financials provide a strong foundation
to weather this challenge and to
provide profitable growth and long-term
shareholder returns.
Signed on behalf of the Board
J.G. Murray
Chairman
17 May 2022
Annual Report and Accounts 2021 – London Security plc
07
Directors and Company advisers
EXECUTIVE DIRECTORS
Jacques Gaston Murray 102
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 55
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 the
Non-Executive Vice Chairman of Andrews Sykes.
Xavier Mignolet 57
Managing Director
Xavier Mignolet joined the Group in 1995. He graduated
with a master’s degree in Commercial and Financial
Sciences at HEC in Liège in 1987 and started his career in
financial audit for PwC in Brussels. He is a Non-Executive
Director of Andrews Sykes.
Emmanuel Sebag 53
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.
NON-EXECUTIVE DIRECTORS
INDEPENDENT NON-EXECUTIVE DIRECTOR
Henry Shouler 84
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.
The Board believes that Henry continues to act with the
utmost independence despite his length of tenure.
Jean-Pierre Murray 53
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 58
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.
08
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS COMPANY INFORMATION
Company advisers
Company Secretary and
registered office
Richard Pollard
Premier House
2 Jubilee Way
Elland
West Yorkshire HX5 9DY
Registered number
00053417
Chartered accountants and
statutory independent auditor
Grant Thornton UK LLP
No.1 Whitehall Riverside
Leeds LS1 4BN
Registrars
Link Group
Unit 10 Central Square
29 Wellington Street
Leeds LS1 4DL
Stockbrokers and
nominated advisers
WH Ireland Limited
24 Martin Lane
London EC4R 0DR
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
Independent 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 the QCA
Corporate Governance Code is set
out in detail on the Group’s website,
www.londonsecurity.org.
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 adopted.
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 auditor
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.
Annual Report and Accounts 2021 – London Security plc
09
Report of the Directors
The Directors present their report and
the audited Group and Parent Company
financial statements for the year ended
31 December 2021. 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, all
of whom served during the whole of the
year ended 31 December 2021, 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.
Non-Executive Directors
M-C. Leon, H. Shouler and J-P. Murray.
J.G. Murray, J-P. Murray 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 8.
Directors’ liability insurance
The Parent Company has maintained a
Directors’ qualifying third party indemnity
policy throughout the financial year and
up to the date of signing the financial
statements. Neither the Company’s
indemnity nor insurance provide cover
in the event that a Director is proved to
have acted fraudulently or dishonestly.
No claims have been made under either
the indemnity or insurance policy.
Substantial shareholdings
At 17 May 2022, the Parent Company had
been notified of the following interests of
3% or more in its share capital:
Number
of shares
Percentage of
share capital
EOI Fire SARL
9,861,954
80.43%
Tristar Fire Corp. 2,256,033
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.
Corporate culture and
ethical values
The Group has a long-established
heritage and reputation based on
sound ethical values and the Board
considers this to be of great ongoing
value. Many companies within our
market sector envy our reputation and
we frequently optimise this commercially
and by attracting new staff.
We have a long list of accreditations,
including ISO 9001 and ISO 14001.
We pride ourselves on providing our
staff with a good working environment
within a strong ethical culture. The local
staff handbooks are regularly reviewed
by the senior operations teams and are
provided to all staff on commencement
of employment and are available at
all times via a Company intranet site.
The Group has a large number of
long-serving staff members, many
with 30 years’ plus service, which is
a testament to our working culture.
Health, safety and the environment
The maintenance and improvement
of working standards to safeguard
the health and wellbeing of staff
and customers alike is a continuing
priority. Health and Safety Officers are
appointed at each Group location and
they receive periodic training to keep
abreast of both legislative requirements
and technological advances. It is
Group policy to operate in a reasonable
manner with regard to the environment.
Employment of disabled persons
The Group is committed to employment
policies that follow best practice based
on equal opportunities for all employees
and offer appropriate training and
career development for disabled staff.
If members of staff become disabled,
the Group continues employment
wherever possible and arranges
retraining if required.
Employee involvement
The Group recognises the need to ensure
effective communications with employees
to encourage involvement in the Group’s
performance and achieve a common
awareness of factors affecting that
performance. Policies and procedures
have been developed to suit the needs of
each subsidiary undertaking, which take
into account factors such as numbers
employed and location and include
newsletters and communication meetings.
Payment to suppliers
The Parent Company and Group agree
payment terms with all suppliers when
they enter into binding purchase contracts.
The Group seeks to abide by the payment
terms agreed with suppliers whenever it
is satisfied that the supplier has provided
the goods or services in accordance with
the agreed terms and conditions. The
Group does not follow any standard or
external code which deals specifically
with the payment of suppliers.
At 31 December 2021 Group average
creditor days were 38 days (2020:
44 days). The Parent Company had
no trade creditors at either year end.
Stakeholder engagement
Also refer to the S172 statement in the
Strategic Report for further details.
Engaging with our stakeholders is key to
our success and delivering our strategy.
We have various mechanisms that
enable the Board and management to
understand and consider stakeholder
views as part of their decision making.
The key stakeholder groups and the
ways in which we engage with them
are set out below:
Customers – feedback from customers
enables us to develop service plans and
products that better meet their needs.
Our engineers interact with customers
on a daily basis. When customers need
10
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS
extra support our customer service
team is available to offer assistance.
Suppliers – we work with suppliers
worldwide which provide products that
support us in delivering high-quality and
safe products for our customers. We
aim to have an open, constructive and
effective relationship with all suppliers
including site visits by our staff.
Investors – we maintain regular dialogue
with investors to communicate our
strategy and performance in order to
promote investor confidence and ensure
our continued access to capital. We use
our website to facilitate distribution of
our results and news. There is an AGM
open to all investors.
Employees – the Group recognises the
need to ensure effective communications
with employees to encourage involvement
in the Group’s performance and achieve
a common awareness of factors
affecting that performance. Policies
and procedures have been developed
to suit the needs of each subsidiary
undertaking, which take into account
factors such as numbers employed and
location and include newsletters and
communication meetings. We involve
and listen to employees to maintain
strong employee engagement and retain
talented people. We consult employees
or their representatives on a regular basis
so that their views can be taken into
account in making decisions which are
likely to affect their interests. We have
a number of employee representative
groups across Europe to facilitate this.
We encourage the involvement of our
employees in the performance of their
Company by linking their remuneration
to a series of incentive schemes.
Environment – the Group has a
long-established heritage and reputation
based on sound ethical values and
the Board considers this to be of great
ongoing value. In recent years many of our
product innovations have been focused
on limiting our environmental impact.
We have a long list of accreditations,
including ISO 9001 and ISO 14001.
Streamlined energy and
carbon reporting
The Companies Act 2006 (Strategic
Report and Directors’ Report)
Regulations 2013 amended the Large and
Medium-sized Companies and Groups
(Accounts and Reports) Regulations 2008
to require large UK companies to report
information on greenhouse gas emissions
in their directors’ reports. The Directors
have concluded that no reporting is
required as none of the Group’s UK
companies are large companies, its
overseas entities are not in scope for this
reporting and London Security plc itself is
a low energy user.
Donations
The Parent Company and the Group
made no political donations during the
year (2020: £Nil) and made charitable
donations of £1,000 (2020: £1,000).
Future developments
Future developments are discussed in
the Chairman’s Statement and in the
Strategic Report.
Post balance sheet events
Subsequent to the year end the
Group has completed the acquisition
of further service contracts for a total
of £4,117,000 (2020: £1,359,000).
Dividends
Dividends are discussed in the
Chairman’s Statement.
Purchase of own shares and
authorities to issue shares
As at 17 May 2022 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 2023 Annual General Meeting.
The special business to be proposed
at the 2022 Annual General Meeting
also includes, in 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.
Going concern statement
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,
being the period to 30 June 2023.
In determining whether the Group’s
accounts should be prepared on a
going concern basis the Directors have
considered the factors likely to affect
future performance. The Chairman’s
Statement contains a Covid-19 impact
assessment detailing the effect it has
had on our business. Although the
countries in which the Group operates
are subject to different and changing
levels of restrictions, our business has
proved resilient and at the date of this
report our engineers are fully engaged.
The Board approved a budget for 2022
and forecasts to June 2023 (together
“the base case budget”) based on the
experience gained during the course of
2021 and the reaction of the business to
the impact of the pandemic. The Group’s
business activities, together with factors
likely to affect its future development
and performance, are described in
the Strategic Report. At 31 December
2021, the Group held cash and cash
equivalents of £35,681,000. Total debt at
31 December 2021 was £3,770,000, of
which £2,430,000 is due for repayment
in the year to 31 December 2022.
Annual Report and Accounts 2021 – London Security plc
11
Report of the Directors continued
Going concern statement continued
The base case budget is based on the
Directors’ current knowledge of the
business, their expectation of the level
of restrictions that are likely to remain in
force over this period and the anticipated
level of work that the engineers could
perform in the countries in which the
Group operates. The base case budget
includes significant cash headroom
throughout the period and no breach
of any bank loan covenants would be
expected. The Directors have also
modelled sensitivities to the base case
budget and demonstrated that the Group
would still expect to have significant
cash headroom and would be able to
comply with its bank loan covenants
after applying these sensitivities. To the
extent that there is a significant downturn
in trading compared with expectations,
the Directors are satisfied that mitigating
actions could be taken, if necessary,
including suspending dividend payments.
Accordingly, the Directors have
a reasonable expectation that the
Company has adequate resources to
continue in operational existence for the
foreseeable future and are satisfied that it
is appropriate to adopt the going concern
basis in preparing the financial statements.
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 regulations.
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
UK adopted international accounting
standards 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:
l select suitable accounting policies
and then apply them consistently;
l state whether applicable UK adopted
international accounting standards
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;
l make judgements and accounting
estimates that are reasonable and
prudent; and
l 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 2006.
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
corporate and financial information
included on the ultimate Parent
Company’s website. Legislation in
12
London Security plc – Annual Report and Accounts 2021
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, the Directors confirm that:
l so far as the Director is aware, there is
no relevant audit information of which
the Group and Parent Company’s
auditor is unaware; and
l they have taken all the steps that
they ought to have taken as Directors
in order to make themselves aware
of any relevant audit information
and to establish that the Group and
Parent Company’s auditor is aware
of that information.
Independent auditor
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 Grant
Thornton UK LLP as independent auditor
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 64 to 66.
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 22 June 2022.
By order of the Board
R. Pollard
Company Secretary
17 May 2022
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS Directors’ remuneration report
Remuneration committee
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
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
Directors’ emoluments totalled £608,473 (2020: £597,168). This includes an amount paid to the highest paid Director
of £418,673 (2020: £408,041).
In compliance with the amendment to AIM Rule 19, the following disclosure in respect of Directors’ remuneration is made:
J.G. Murray
J-J. Murray
X. Mignolet
E. Sebag
J-P. Murray
M-C. Leon
H. Shouler
Emoluments and compensation including
any cash or non-cash benefits received
2021
£Nil
£125,800
£418,673
£Nil
£20,000
£20,000
£24,000
2020
£Nil
£125,127
£408,041
£Nil
£20,000
£20,000
£24,000
None of the Directors participate in Group pension arrangements. The Company paid no contributions to any private
pension schemes.
The Group and Parent Company is 80% owned by EOI Fire SARL (“EOI”). On 10 December 1999, the Parent Company and
EOI entered into a Services Agreement. The agreement confirms that the business shall be managed by the Board for the
benefit of the shareholders as a whole. The costs relating to the Head Office and other expenses of the Executive Directors are
limited under the Services Agreement and reviewed annually. The total costs amounted to £705,574 (2020: £747,414) for the
year ended 31 December 2021 as per the Services Agreement.
On behalf of the Board
H. Shouler
Chairman of the remuneration committee
17 May 2022
Annual Report and Accounts 2021 – London Security plc
13
Independent auditor’s report
to the members of London Security plc
Opinion
Our opinion on the financial statements is unmodified
We have audited the financial statements of London Security plc (the "Parent Company") and its subsidiaries (the "Group") for the year
ended 31 December 2021, which comprise the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income,
the Consolidated Statement of Changes in Equity, the Consolidated Statement of Financial Position, the Consolidated Statement of Cash
Flows, the Parent Company Balance Sheet, the Parent Company Statement of Changes in Equity and notes to the financial statements,
including a summary of significant accounting policies. The financial reporting framework that has been applied in the preparation of
the Group financial statements is applicable law and UK-adopted international accounting standards. The financial reporting framework
that has been applied in the preparation of the Parent Company financial statements is applicable law and United Kingdom Accounting
Standards, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"
(United Kingdom Generally Accepted Accounting Practice).
In our opinion:
l the financial statements give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at
31 December 2021 and of the Group’s profit for the year then ended;
l the Group financial statements have been properly prepared in accordance with UK-adopted international accounting standards;
l the Parent Company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice; and
l the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) ("ISAs (UK)") and applicable law. Our responsibilities
under those standards are further described in the "Auditor’s responsibilities for the audit of the financial statements" section of our report.
We are independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to our audit of
the financial statements in the United Kingdom, including the FRC’s Ethical Standard as applied to listed entities, and we have fulfilled our
other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We are responsible for concluding on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s
and the Parent Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s
opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may
cause the Group or the Parent Company to cease to continue as a going concern.
Our evaluation of the Directors’ assessment of the Group’s and the Parent Company’s ability to continue to adopt the going concern basis
of accounting included:
l obtaining management’s monthly forecasts, covenant calculations and sensitivity analysis for the period ending 30 June 2023;
l evaluating the key assumptions applied in the forecasts for reasonableness and determining whether they had been applied appropriately;
l assessing the reliability of management’s forecasting by comparing the accuracy of actual historical financial performance to historic
forecast information;
l noting that the Group generated £26.6m of cash from operating activities in the year and recorded net funds of £31.9m (£35.7m of cash
less £3.8m of bank debt) at 31 December 2021;
l evaluating the sensitivity analysis performed on the forecasts by management, including a significant reduction in forecast revenues as
the key sensitivity;
l evaluating covenant compliance throughout the going concern period in both the base case and sensitised scenarios;
14
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS Conclusions relating to going concern continued
l performing a “reverse stress test” analysis on management’s forecasts to estimate the reduction in revenues required to eliminate the
headroom in the cash flow forecasts, were discretionary dividends to be suspended, and assessing whether mitigating actions were
available should they be required; and
l assessing the adequacy of the going concern disclosures included within the financial statements by management including within the
Report of the Directors and the basis of preparation in note 2 to the financial statements.
In our evaluation of the Directors’ conclusions, we considered the inherent risks associated with the Group’s and the Parent Company’s
business model including effects arising from macro-economic uncertainties such as Brexit and Covid-19 and we assessed and challenged
the reasonableness of estimates made by the Directors and the related disclosures and analysed how those risks might affect the Group’s
and the Parent Company’s financial resources or ability to continue operations over the going concern period.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or
collectively, may cast significant doubt on the Group’s and the Parent Company’s ability to continue as a going concern for a period of at least
12 months from when the financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the preparation
of the financial statements is appropriate.
The responsibilities of the Directors with respect to going concern are described in the "Responsibilities of Directors for the financial
statements" section of this report.
Our approach to the audit
Materiality
Key audit
matters
Scoping
Overview of our audit approach
Overall materiality:
Group: £1,350,000, which represents 5% of the Group’s profit before income tax.
Parent Company: £539,000, which represents 1% of the Parent Company’s total assets.
One key audit matter has been identified, being:
l Improper revenue recognition – same as previous year.
Our Auditor’s Report for the year ended 31 December 2020 included one key audit matter that has
not been reported as a key audit matter in our current year report. This change relates to “Valuation
of intangible assets – non-current assets’ carrying value exceeds fair value” which is not assessed
to represent a significant risk in the current year due to the amount of headroom with management’s
impairment calculations and a reduction in the levels of economic uncertainty caused by Covid-19.
We performed a combination of full-scope audit and specified audit procedures on the financial
information of certain Belgian, United Kingdom, Dutch and Austrian components. This work was
performed by the Group engagement team and component auditors located in Belgium, the
Netherlands and Austria. As part of these audit procedures 80% of revenue was subject to testing
through either full-scope audit or specified audit procedures.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our 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) that we identified. These matters included those that 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 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.
Description
Audit response
K AM
Disclosures
Our results
Annual Report and Accounts 2021 – London Security plc
15
Independent auditor’s report continued
to the members of London Security plc
Key audit matters continued
In the graph below, we have presented the key audit matters, significant risks, and other risks relevant to the audit.
High
Potential
financial
statement
impact
The revenue cycle includes
fraudulent transactions
Management
over-ride of controls
Going concern
Valuation of
intangible assets
Business
combinations
Existence and
valuation of
trade debtors
Existence and
valuation of
inventories
Valuation of the
defined benefit pension
scheme liabilities
Related party
transactions
Low
Low
Extent of management judgement
High
Key audit matter
Significant risk
Other risk
Key audit matter – Group
How our scope addressed the matter – Group
Improper revenue recognition
We identified improper revenue recognition as one of the most
significant assessed risks of material misstatement due to fraud.
The Group has a number of different revenue streams with the
related revenue either being recognised either at a point in time or
over the period of time that the service is performed.
The revenue recorded by the Group is also one of the key determinants
of Group profit before tax, which is the primary financial key performance
indicator ("KPI") for the Group.
Under ISA 240 (UK) there is a presumed risk that revenue may be
misstated due to the improper recognition of revenue. We have
assessed this risk to reside primarily within uncollected revenues
for point in time revenue and revenues recognised in relation to
incomplete projects at the year end for over time revenue as there
is an increased risk that these revenues did not occur if they have
not been paid at the balance sheet date or if the project works
were ongoing.
In responding to the key audit matter, we performed the following
audit procedures:
l documenting our understanding of the systems and controls in
place around the recording of revenue, and evaluating the design
and implementation of relevant controls;
l assessing the accounting policies for consistency and appropriateness
with the financial reporting framework, including IFRS 15 "Revenue
from Contracts with Customers" for all significant revenue streams,
and in particular that revenue was recognised at the point where the
Group satisfied its related performance obligation to the customer;
l testing samples of revenue transactions through agreement to
relevant supporting documentation, such as proof of delivery/
proof of service and cash receipt, to confirm that revenue was only
recognised once the performance obligation had been met. For the
incomplete projects specifically we carried out additional testing,
including discussions with project managers and examination of
post year end documentation, to ensure the appropriate amount
of revenue had been recognised at the year end; and
l testing a sample of transactions in the final weeks of December 2021
and the first weeks of January 2022, including any large post-year
end credit notes raised to confirm that transactions have been
recorded in the correct financial period.
16
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS Key audit matters continued
Key audit matter – Group
How our scope addressed the matter – Group
Relevant disclosures in the Annual Report and
Accounts 2021
The Group’s accounting policy on revenue recognition and related
disclosures, including the split of revenue between point in time and over
time, is shown in note 2, Summary of significant accounting policies.
Our results
Based on our audit work, we did not identify any material misstatement
in the revenue recognised in relation to the uncollected revenue or
incomplete project revenue in the year to 31 December 2021.
We did not identify any key audit matters relating to the audit of the financial statements of the Parent Company.
Our application of materiality
We apply the concept of materiality both in planning and performing the audit, and in evaluating the effect of identified misstatements on the
audit and of uncorrected misstatements, if any, on the financial statements and in forming the opinion in the Auditor’s Report.
Materiality was determined as follows:
Materiality measure
Group
Parent Company
Materiality for financial
statements as a whole
We define materiality as the magnitude of misstatement in the financial statements that, individually or in the
aggregate, could reasonably be expected to influence the economic decisions of the users of these financial
statements. We use materiality in determining the nature, timing and extent of our audit work.
Materiality threshold
£1,350,000, which is 5% of profit before income tax.
£539,000, which is 1% of total assets.
Significant judgements
made by the auditor in
determining materiality
We determined that profit before income tax was the most
appropriate benchmark for the Group as it is a measure
against which performance of the Group is assessed both
internally and externally and also a generally accepted
auditing benchmark for listed companies. This benchmark
is consistent with that used in the prior year.
The amount used for materiality in the current year is
higher than the prior year due to an increase in profit before
income tax for the year ended 31 December 2021. In
addition materiality for the year ended 31 December 2020
equated to 4.1% of reported profit before income tax as
it was based on forecast profit.
We determined that total assets was the most
appropriate benchmark given the primary
activities of the Parent Company as a holding
company and its major activities relating to fixed
assets included in the financial statements.
The benchmark used for the year ended
31 December 2021 is the same as the benchmark
used for the year ended 31 December 2020;
however, the materiality is higher due to an
increase in total assets.
Performance materiality
used to drive the extent
of our testing
We set performance materiality at an amount less than materiality for the financial statements as a whole
to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected
misstatements exceeds materiality for the financial statements as a whole.
Performance
materiality threshold
£945,000, which is 70% of financial
statement materiality.
£377,000, which is 70% of financial
statement materiality.
Significant judgements made
by the auditor in determining
performance materiality
In determining materiality, we made the following
significant judgements:
l assessment of the strength of the control
environment of the Group and its entities across
the United Kingdom and Europe;
l consideration of control findings and misstatements
from the prior year audit; and
l assessment of the strength of the information systems
used for key business processes and reporting.
Performance materiality for the Parent Company
has been calculated to be consistent with the
Group in line with the significant judgements
made for the Group.
Specific materiality
We determine specific materiality for one or more particular classes of transactions, account balances or
disclosures for which misstatements of lesser amounts than materiality for the financial statements as a
whole could reasonably be expected to influence the economic decisions of users taken on the basis of
the financial statements.
Specific materiality
We determined a lower level of specific materiality
for the following areas:
We determined a lower level of specific materiality
for the following areas:
l Directors remuneration
l Related party disclosures
l Related party disclosures
We determine a threshold for reporting unadjusted differences to the audit committee.
Communication of
misstatements to the
audit committee
Annual Report and Accounts 2021 – London Security plc
17
Independent auditor’s report continued
to the members of London Security plc
Our application of materiality continued
Materiality measure
Group
Parent Company
Threshold for communication
£67,000 and misstatements below that threshold that,
in our view, warrant reporting on qualitative grounds.
£27,000 and misstatements below that
threshold that, in our view, warrant reporting
on qualitative grounds.
The graph below illustrates how performance materiality interacts with our overall materiality and the Colerance for potential
uncorrected misstatements.
Overall materiality – Group
Overall materiality – Parent Company
Profit before tax
£26,998,000
FSM
£1,350,000,
5%
PM
£945,000,
70%
TFPUM
£405,000,
30%
Total assets
£53,890,000
FSM
£539,000,
1%
PM
£377,000,
70%
TFPUM
£162,000,
30%
FSM: financial statements materiality, PM: performance materiality and TFPUM: tolerance for potential uncorrected misstatements.
An overview of the scope of our audit
We perform a risk-based audit that requires an understanding of the Group’s and Parent Company’s business and in particular matters related to:
Understanding the Group, its components, and their environments, including Group-wide controls
l Obtaining and documenting an understanding of the design and implementation of controls in place related to significant risks.
l An evaluation of the Group’s internal control environment including its IT systems and controls.
Identifying significant components
l Evaluation by the Group audit team of United Kingdom and overseas components to assess the significance of each component and to
determine the planned audit response based on a measure of materiality, including its relative contribution to the Group’s revenues and profit
before income tax.
Type of work to be performed on financial information of parent and other components (including how it addressed the key audit matters)
l Full-scope audits were performed on the financial information of four Belgium components using component materiality. These procedures
included a combination of tests of details and analytical procedures.
l Specified audit procedures were carried out on a further 12 components located in the UK, Netherlands, Belgium and Austria. These
procedures included a combination of tests of details and analytical procedures.
l For those components that were not individually significant to the Group, we carried out analytical procedures.
Communications with component auditors
l The audit of the Belgium components was performed by the Belgium component auditor such that we had appropriate direction and
involvement in the work of the component auditor throughout the audit. This included briefing the component audit team, directing the risk
assessment and fraud discussions, regular communication with the component auditor, attendance at audit close meetings and reviewing
and evaluating the work performed by the component auditor for the purpose of the Group audit.
l For 12 components located in the United Kingdom, the Netherlands, Belgium and Austria we carried out either specified audit procedures
or audits of one or more account balances, classes of transactions or disclosures. The procedures for the Netherlands, Belgian and Austrian
components were performed by component auditors. We had appropriate direction and involvement in the work of the component auditor
throughout the audit. This included briefing the component audit team, directing the risk assessment and fraud discussions, regular
communication with the component auditor and reviewing the work performed by the component auditor for the purpose of the Group audit.
Performance of our audit
Components subject to full scope or specified audit procedures contributed 80% of the consolidated revenues and 70% of consolidated profit
before income tax.
18
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS An overview of the scope of our audit continued
Changes in approach from previous period
There have been no changes to the components that were in scope for full-scope audits procedures between the prior year and current year.
The Group scoping for components subject to specified procedures only is substantially unchanged from that in the prior year.
Other information
The Directors are responsible for the other information. The other information comprises the information included in the Annual Report and
Accounts 2021, other than the financial statements and our Auditor’s Report thereon. Our opinion on the financial statements does not cover the
other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion 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 such material inconsistencies or apparent material misstatements, we are required to determine whether
there is a material misstatement in 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 in this regard.
Our opinion on other matters prescribed by the Companies Act 2006 is unmodified
In our opinion, based on the work undertaken in the course of the audit:
l the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements
are prepared is consistent with the financial statements; and
l the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.
Matter on which we are required to report under the Companies Act 2006
In light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit,
we have not identified material misstatements in the Strategic Report or the Report of the Directors.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
l 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
l the Parent Company financial statements are not in agreement with the accounting records and returns; or
l certain disclosures of Directors’ remuneration specified by law are not made; or
l we have not received all the information and explanations we require for our audit.
Responsibilities of Directors for the financial statements
As explained more fully in the Statement of Directors’ Responsibilities Statement in respect of the financial statements, the Directors are
responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal
control as the Directors 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 and 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 Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s 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 auditor’s 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 Financial Reporting Council’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor’s Report.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities,
outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there
is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned
and performed in accordance with ISAs (UK).
Annual Report and Accounts 2021 – London Security plc
19
Independent auditor’s report continued
to the members of London Security plc
Explanation as to what extent the audit was considered capable of detecting irregularities,
including fraud continued
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
l We obtained an understanding of the legal and regulatory frameworks applicable to the Company, and the industry in which it operates.
We determined that the following laws and regulations were most significant: financial reporting legislation (UK-adopted international
accounting standards and the Companies Act 2006) and tax compliance legislation.
l We understood how the Parent Company and the Group are complying with those legal and regulatory frameworks by making enquiries of
management and those responsible for legal and compliance procedures. We corroborated our enquiries through inspection of Board minutes.
l We enquired of management whether there were any known or suspected instances of non-compliance with laws and regulations or fraud
that could have a material impact on the financial statements. We corroborated the results of our enquiries to supporting documentation
such as Board minute reviews and papers provided to the Audit Committee.
l To assess the potential risks of material misstatement, we obtained an understanding of:
l the Group’s operations, including the nature of its revenue sources, expected financial statement disclosures and business risks that
may result in risk of material misstatement; and
l the Group’s control environment including the adequacy of procedures for authorisation of transactions.
We assessed the susceptibility of the Group’s financial statements to material misstatement, including how fraud might occur, by evaluating
management’s incentives and opportunities for manipulation of the financial statements. This included the evaluation of the risk of
management override of controls.
l Audit procedures performed by the engagement team included:
l evaluating the processes and controls established to address the risks related to irregularities and fraud;
l journal entry testing, in particular journals that were indicative of unusual transactions based on our understanding of the business;
l challenging assumptions and judgements made by management in its significant accounting estimates; and
l identifying and testing related party transactions.
l These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of
not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities
that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate
concealment, forgery, or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events
and transactions reflected in the financial statements, the less likely we would become aware of it.
l We assessed the appropriateness of the collective competence and capabilities of the engagement team, including consideration of the
engagement team’s knowledge and understanding of the industry in which the client operates, and it practical experience through training
and participation with audit engagements of a similar nature.
l Team communications in respect of potential non-compliance with laws and regulations and fraud included the potential for fraud in revenue
recognition and areas of significant management judgement and estimation. These are also reported as key audit matters in the key audit matter
section of our report where the matter and the specific procedures we performed in response to the key audit matter are described in more detail.
l We asked the component auditors to perform procedures to assess whether there was any non-compliance with laws and regulations,
in the overseas components, that could have a material impact on the Group financial statements.
Use of our report
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in
an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Mark Overfield BSc FCA
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Leeds
17 May 2022
20
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS Consolidated income statement
for the year ended 31 December 2021
Revenue
Cost of sales
Gross profit
Distribution costs
Administrative expenses
Net impairment gain/(loss) on financial assets
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 26 to 57 are an integral part of these consolidated financial statements.
The above results are all as a result of continuing operations.
Notes
2021
£’000
2020
£’000
166,634
(43,096)
152,723
(37,387)
123,538
(59,974)
(36,740)
350
115,336
(56,281)
(33,027)
(1,328)
27,174
24,700
36,273
(9,099)
33,547
(8,847)
16
24
24
27,174
24,700
6
7
8
28
(204)
(176)
78
(201)
(123)
26,998
(6,990)
24,577
(6,536)
20,008
18,041
19,907
101
17,853
188
20,008
18,041
9
162.4p
145.6p
Annual Report and Accounts 2021 – London Security plc
21
Consolidated statement of comprehensive income
for the year ended 31 December 2021
Profit for the financial year
Other comprehensive (expense)/income:
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 loss recognised in the Nu-Swift Pension Scheme
– movement on deferred tax relating to the Nu-Swift Pension Scheme surplus
– actuarial gain/(loss) recognised in the Ansul Pension Scheme
– movement on deferred tax relating to the Ansul Pension Scheme deficit
Other comprehensive expense for the year, net of tax
Equity shareholders of the Company
Non-controlling interest
Total comprehensive income for the year
The notes on pages 26 to 57 are an integral part of these consolidated financial statements.
Notes
2021
£’000
2020
£’000
19,907
17,853
21
19
21
19
(3,782)
2,396
(70)
25
104
(26)
(4,554)
1,594
(17)
5
(3,749)
(576)
16,158
101
17,277
188
16,259
17,465
22
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS
Consolidated statement of changes in equity
for the year ended 31 December 2021
Ordinary
shares
£’000
123
Share
premium
£’000
344
Capital
redemption
reserve
£’000
Merger
reserve
£’000
Other
reserves
£’000
Retained Non-controlling
interest
earnings
£’000
£’000
Total
equity
£’000
1
2,033
6,442
106,882
349
116,174
At 1 January 2020
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 deficit
Total comprehensive income for the year
Contributions by and distributions
to owners of the Company:
– dividends
Distribution to non-controlling interest
—
—
—
—
—
—
—
—
—
—
—
—
—
—
At 31 December 2020 and 1 January 2021 123
344
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 deficit
Total comprehensive income/(expense)
for the year
Contributions by and distributions
to owners of the Company:
– dividends
Distribution to non-controlling interest
Reduction in non-controlling interest
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
At 31 December 2021
123
344
—
—
—
—
—
—
—
1
—
—
—
—
—
—
—
—
1
—
—
—
—
—
—
—
— 17,853
188
18,041
2,396
—
—
(4,571)
—
1,599
—
—
—
2,396
(4,571)
1,599
2,396
14,881
188
17,465
—
—
(7,356)
—
(7,356)
—
(160)
(160)
2,033
8,838
114,407
377
126,123
—
—
—
—
—
—
—
—
— 19,907
101
20,083
(3,782)
—
—
—
34
(1)
—
—
—
(3,782)
34
(1)
(3,782)
19,940
101
16,259
—
—
—
(9,807)
—
(9,807)
—
(468)
(150)
(210)
(150)
(678)
2,033
5,056
124,072
118
131,747
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 26 to 57 are an integral part of these consolidated financial statements.
Annual Report and Accounts 2021 – London Security plc
23
Consolidated statement of financial position
as at 31 December 2021
Assets
Non-current assets
Property, plant and equipment
Right of use assets
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
Lease liabilities
Provision
Non-current liabilities
Trade and other payables
Borrowings
Lease liabilities
Derivative financial instruments
Deferred tax liabilities
Retirement benefit obligations
Provision
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
2021
£’000
2020
£’000
11
12
13
19
21
15
16
17
18
20
26
22
18
20
26
14
19
21
22
23
23
23
23
23
23
13,990
4,297
70,074
778
380
89,519
16,423
33,021
35,681
85,125
13,046
3,254
66,311
790
445
83,846
14,953
33,174
37,456
85,583
174,644
169,429
(28,061)
(1,607)
(2,430)
(1,603)
(13)
(27,582)
(2,074)
(2,518)
(1,451)
(16)
(33,714)
(33,641)
(1,058)
(1,340)
(2,740)
(20)
(1,731)
(2,144)
(150)
(9,183)
(941)
(3,170)
(1,851)
(36)
(1,146)
(2,349)
(172)
(9,665)
(42,897)
(43,306)
131,747
126,123
123
344
1
2,033
5,056
124,072
131,629
118
123
344
1
2,033
8,838
114,407
125,746
377
131,747
126,123
The notes on pages 26 to 57 are an integral part of these consolidated financial statements.
The financial statements on pages 21 to 25 were approved by the Board of Directors on 17 May 2022 and were signed on its
behalf by:
J.G. Murray
Chairman
17 May 2022
24
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS
Consolidated statement of cash flows
for the year ended 31 December 2021
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
Payment of lease liabilities
Dividends paid to the Company’s shareholders
Distribution to non-controlling interest
Reduction in non-controlling interest
Net cash used in financing activities
Net increase in cash in the year
Cash and cash equivalents at the beginning of the year
Effects of exchange rates on cash and cash equivalents
Notes
24
27
2021
£’000
2020
£’000
33,909
(106)
(7,122)
32,862
(118)
(5,524)
26,681
27,220
(4,871)
(4,880)
682
(2,693)
7
(516)
(5,063)
462
(1,244)
27
(11,755)
(6,334)
(2,119)
(2,072)
(9,807)
(150)
(678)
(2,121)
(2,036)
(7,356)
(160)
—
(14,826)
(11,673)
100
37,456
(1,875)
9,213
27,143
1,100
Cash and cash equivalents at the end of the year
17
35,681
37,456
The notes on pages 26 to 57 are an integral part of these consolidated financial statements.
Annual Report and Accounts 2021 – London Security plc
25
Notes to the financial statements
for the year ended 31 December 2021
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 United Kingdom, 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 UK adopted international accounting standards,
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, being the period to
30 June 2023. In determining whether the Group’s accounts should be prepared on a going concern basis the Directors have
considered the factors likely to affect future performance. The Chairman’s Statement contains a Covid-19 impact assessment
detailing the effect it has had on our business. Although the countries in which the Group operates are subject to different and
changing levels of restrictions, our business has proved resilient and at the date of this report our engineers are fully engaged.
The Board approved a budget for 2022 and forecasts to June 2023 (together “the base case budget”) based on the experience
gained during the course of 2021 and the reaction of the business to the impact of the pandemic. The Group’s business
activities, together with factors likely to affect its future development and performance, are described in the Strategic Report.
At 31 December 2021, the Group held cash and cash equivalents of £35,681,000. Total debt at 31 December 2021 was
£3,770,000, of which £2,430,000 is due for repayment in the year to 31 December 2022.
The base case budget is based on the Directors’ current knowledge of the business, their expectation of the level of restrictions
that are likely to remain in force over this period and the anticipated level of work that the engineers could perform in the countries
in which the Group operates. The base case budget includes significant cash headroom throughout the period and no breach
of any bank loan covenants would be expected. The Directors have also modelled sensitivities to the base case budget and
demonstrated that the Group would still expect to have significant cash headroom and would be able to comply with its bank loan
covenants after applying these sensitivities. To the extent that there is a significant downturn in trading compared with expectations,
the Directors are satisfied that mitigating actions could be taken, if necessary, including suspending dividend payments.
Accordingly, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational
existence for the foreseeable future and are satisfied that it is appropriate to adopt the going concern basis in preparing the
financial statements.
Accounting developments
A number of new standards, amendments to standards and interpretations are effective for the year ended 31 December 2021.
These are considered either not relevant or to have no material impact on the Group.
There are no standards that are issued but not yet effective that would be expected to have a material impact on the entity
in the current or future reporting periods or on foreseeable future transactions.
26
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS 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 acquisition method of accounting under IFRS 3 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 IFRS 9.
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.
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. Where operating segments share similar economic characteristics and the segments are similar in
relation to the nature of products and services, nature of the production processes and type of customers including method
of providing the service then they may be deemed to be a single operating unit. The Directors have concluded that there is a
single operating segment as defined by IFRS 8, being the provision and maintenance of fire protection and security equipment
in Europe. Consequently, the results for the year and assets and liabilities relate to this one 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 have 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.
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.
Annual Report and Accounts 2021 – London Security plc
Annual Report and Accounts 2021 – London Security plc
27
27
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
2%–6%
Plant, machinery and extinguisher rental units
10%–33%
Motor vehicles and share in aircraft
Fixtures, fittings and equipment
5%–33%
10%
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 inflows.
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 (10 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).
Where indicators of impairment are identified a detailed impairment review is carried out for intangible assets other than
goodwill and will be impaired as required.
28
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTSNotes to the financial statements continued for the year ended 31 December 2021
2 Summary of significant accounting policies continued
Right of use assets and lease liabilities
The Group recognises a right of use asset and a lease liability at the lease commencement date.
The right of use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date less any lease incentives received. The right of use asset is subsequently
depreciated using the straight line method from the commencement date to the end of the lease term.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted using the Group’s incremental borrowing rate.
The Group applied IFRS 16 using the modified retrospective approach. In line with the simplified approach under IFRS 16 the
Group has taken advantage of the practical expedient with right of use asset values being set equal to lease liabilities. 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 estimated 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 (2.80%) and
Euros (1.55%).
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. Inventory is reviewed annually and a provision is made for obsolete, slow-moving or defective items where appropriate.
Financial instruments recognition and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the
financial instrument. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset
expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is derecognised
when it is extinguished, discharged, cancelled or expired.
Financial instruments classification and measurement
Financial assets, except for trade receivables, are initially measured at fair value. The Group classifies its financial assets as
those to be measured at amortised cost except for derivative financial assets that are at fair value through profit or loss. After
initial recognition, these financial assets are measured at amortised cost using the effective interest method. Discounting is
omitted where the effect of discounting is immaterial. The Group’s financial assets include cash and cash equivalents, trade
receivables, amounts owed by related undertakings and other receivables. The carrying value of these financial assets is
disclosed in note 16 and note 17 to the financial statements.
Financial liabilities are initially measured at fair value and, where applicable, adjusted for transaction costs unless the Group
designated a financial liability at fair value through profit or loss. Subsequently, financial liabilities are measured at amortised
cost using the effective interest rate method except for derivatives, which are carried subsequently at fair value with gains and
losses recognised in profit or loss. The Group’s financial liabilities include trade payable, other payables, accruals, borrowings
and derivative financial liabilities. The carrying value of the financial liabilities is disclosed in note 14, note 18 and note 20 to
the financial statements.
The carrying value of assets and liabilities classified at amortised cost approximates to their fair value.
Annual Report and Accounts 2021 – London Security plc
29
2 Summary of significant accounting policies continued
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.
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.
Cash and cash equivalents
Cash and cash equivalents are included in the Statement of Financial Position at cost. Cash and cash equivalents include 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 and subsequently at amortised cost using the effective interest method.
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.
30
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTSNotes to the financial statements continued for the year ended 31 December 2021 2 Summary of significant accounting policies continued
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.
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 are 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 net interest cost or income are shown within finance cost or 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.
Annual Report and Accounts 2021 – London Security plc
31
2 Summary of significant accounting policies continued
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 is shown net of value-added tax and after eliminating sales within the Group.
When assessing revenue recognition against IFRS 15, the Group assesses the contract against the five steps of IFRS 15:
1. Identify the contract with a customer.
2. Identify the performance obligations.
3. Determine the transaction price.
4. Allocate the transaction price to the performance obligations.
5. Recognise revenue when/as performance obligations are satisfied.
This process includes the assessment of the performance obligations within the contract and the allocation of contract revenue
across these performance obligations once identified. Revenue is recognised either at a point in time or over time, when, or as,
the Group satisfies performance obligations by transferring the promised goods or services to its customers. Revenue is based
on their relative stand-alone selling prices and 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.
(d) Installation
Revenue from the installation of fire protection equipment is recognised over time as an asset controlled by the customer is
created or enhanced by the Group’s performance. In such arrangements the Group provides a significant service of integrating
goods and services to provide a combined output to the customer. The amount of revenue recognised as the service is
performed is based on the assessed value of work completed using the outputs method. Should billings exceed the amount
of revenue recognised a contract liability is recognised. Should the amount of revenue recognised exceed billings a contract
asset is recognised. There were no contract assets or liabilities at the year end.
(e) 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, with the unexpired portion held in deferred income. All contracts are cancellable.
The Group recognises liabilities for consideration received in respect of unsatisfied performance obligations for maintenance
and equipment rental revenue and reports these amounts as deferred income in the Statement of Financial Position (see note 18
for opening and closing deferred income balances). For 2021, revenue includes £2,841,000 (2020: £2,723,000) included in
the deferred income balance at the beginning of the period. No revenue has been recognised (2020: £Nil) from performance
obligations satisfied in previous periods due to a change in transaction price.
32
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTSNotes to the financial statements continued for the year ended 31 December 2021 2 Summary of significant accounting policies continued
Revenue recognition continued
(e) Equipment rental continued
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.
2021
Timing of recognition:
At a point in time
Over time
Total revenue
2020
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
101,769
—
39,317
—
101,769
39,317
—
4,035
4,035
—
4,318
— 141,086
25,548
17,195
4,318
17,195
166,634
Outright sale
£’000
Service
£’000
Maintenance
£’000
Rental
£’000
Installation
£’000
Total
£’000
92,706
—
36,563
—
92,706
36,563
—
4,122
4,122
—
4,322
— 129,269
23,454
15,010
4,322
15,010
152,723
Although the Directors have concluded that there is one geographic segment in which the Group operates, the revenue can be
analysed across the following countries:
United Kingdom
Belgium
Netherlands
Austria
Rest of Europe
2021
£’000
36,884
59,826
40,632
19,636
9,656
2020
£’000
32,251
55,918
38,686
18,611
7,257
166,634
152,723
Cost of sales
Cost of sales includes direct material costs net of supplier rebates. Other direct costs, largely direct labour, of £58.9 million
(2020: £53.4 million) are included within distribution costs.
Government grants
Government grants relate to payments received under Coronavirus Job Retention Schemes. These receipts are recognised
in profit or loss in staff costs in the periods in which the expenses are recognised. Where the conditions for receiving the grant
are met after the related expenses have been recognised, the grant is recognised when it becomes receivable.
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.
Annual Report and Accounts 2021 – London Security plc
33
3 Financial risk management
Financial risk factors
The Board considers the Group has exposure to the following risks: 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.
Credit 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 gross carrying amount of financial assets recorded in the financial statements, represents the
Group’s maximum exposure to credit risk.
Liquidity risk – the Group manages liquidity risk by maintaining adequate cash reserves, which at 31 December 2021
amounted to £35,681,000 (2020: £37,456,000), by operating within its agreed banking facilities, by continually monitoring
forecast and actual cash flows, by matching the maturity profiles of monetary assets and liabilities and by monitoring and
discussing its covenants with its banks. The Group’s bank loans at 31 December amounted to £3,770,000 (2020: £5,688,000)
and their maturity is analysed in detail in note 20. In view of the significant level of net funds available to the Group of
£31,911,000 (2020: £31,768,000), the Board has concluded that it has minimal exposure to liquidity risk.
(a) Foreign currency exchange risk
There are very few transactions, assets and liabilities that are denominated in a currency that is different to the functional
currency of the entity in which they are recorded. As such there is deemed to be little to no foreign currency exchange risk.
(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 SONIA 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 SONIA to 1.38%. The agreements took effect from
May 2018 and provide interest rate cover until the loans are repaid in May 2023. The amount of these loans outstanding at
31 December 2021 was £3.4 million.
An additional £0.4 million of long-term loans have been recognised on the acquisition of subsidiary undertakings in the year.
These are set to be repaid equally over the next six years. There is no capping agreement in place for these loans.
(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 cash and cash equivalents
Less: borrowings
Net funds
Total equity
Total capital
2021
£’000
2020
£’000
35,681
(3,770)
37,456
(5,688)
31,911
131,747
31,768
126,123
163,658
157,891
34
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTSNotes to the financial statements continued for the year ended 31 December 2021 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
In the prior year financial statements there were significant estimates for the assumptions related to management’s assessment
of the carrying value of goodwill. In the current year this is not deemed to be an area of significant estimation due to the amount
of headroom in the impairment calculations. The Group tests annually whether the carrying value of goodwill has suffered any
impairment, in accordance with its accounting policy.
(b) 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 sensitivity of these assumptions is discussed in note 21 Retirement benefit obligations.
Significant judgements
(a) Segmental reporting
The chief operating decision maker (“CODM”) for the London Security Group has been identified as the executive Board as
ultimately this function is responsible for the allocation of resources and assessing the performance of the Group’s business
units. The internal reporting provided to the CODM is a combination of consolidated financial information and detailed analysis
by brand. The management information on which the CODM makes its decisions has been reviewed and is deemed to be the
consolidated result for the Group. The Group’s companies in different European countries operate under similar economic and
political conditions with no different significant risks associated with any particular area and no exchange control risks and the
Group’s operations are managed on a Pan-European basis with close operational relationships between subsidiary companies.
In addition, the nature of products, services, production and distribution is consistent across the region. Accordingly, the Directors
have concluded that under IFRS 8 the Group operates in a single geographical and market segment and that there is a single
operating segment for which financial information is regularly reviewed by the CODM.
5 Employee benefit expense
Wages and salaries
Government grants
Social security costs
Other pension costs (note 21)
2021
£’000
2020
£’000
56,829
(190)
11,032
2,676
53,282
(1,940)
10,158
2,476
70,347
63,976
Directors’ emoluments including employer’s National Insurance totalled £624,615 (2020: £668,074). This includes an amount paid
to the highest paid Director of £418,673 (2020: £408,041). Key management personnel are deemed only to be the Directors.
The average monthly number of persons employed by the Group (including Directors) during the year was as follows:
Production
Administration and management
Total
2021
Number
46
1,390
1,436
2020
Number
46
1,360
1,406
Annual Report and Accounts 2021 – London Security plc
35
6 Finance income and costs
Finance income
Bank interest receivable
Expected return on pension scheme assets (note 21)
Fair value of derivative financial instruments
Total finance income
Finance costs
Interest on bank loans, overdrafts and other loans repayable within five years
Amortisation of loan arrangement fees
Interest on lease liabilities
Interest on pension scheme liabilities (note 21)
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
Depreciation of right of use assets
Amortisation of intangible fixed assets
Profit on disposal of plant and equipment
Loss on disposal of intangible assets
2021
£’000
2020
£’000
7
5
16
28
(88)
(18)
(83)
(15)
(204)
(176)
28
40
10
78
(100)
(18)
(68)
(15)
(201)
(123)
2021
£’000
3,678
1,989
3,430
(372)
2
2020
£’000
3,534
1,986
3,327
(76)
13
Services provided by the Group’s external auditor and network firms
During the year, the Group (including its overseas subsidiaries) obtained the following services from the Group’s auditor as
detailed below:
Audit services
Fees payable to the Parent Company’s auditor for the audit of the Group’s annual accounts
Fees payable to the Parent Company’s auditor and its network firms for other services:
– the audit of the Parent Company’s subsidiaries pursuant to legislation
2021
£’000
162
227
389
2020
£’000
142
233
375
36
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTSNotes to the financial statements continued for the year ended 31 December 2021
8 Income tax expense
United Kingdom
Corporation tax
Foreign tax
Corporation taxes
Total current tax
Deferred tax
Origination and reversal of temporary differences representing:
– United Kingdom tax
– foreign tax
Total deferred tax (note 19)
Total tax charge
2021
£’000
668
668
2020
£’000
567
567
6,439
7,107
6,294
6,861
(215)
98
(117)
(252)
(73)
(325)
6,990
6,536
The tax for the year is higher (2020: higher) than the standard rate of corporation tax in the United Kingdom of 19% (2020: 19%).
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% (2020: 19%)
Effects of:
– expenses not deductible for tax purposes
– overseas tax rate in excess of UK standard
Total tax charge
2021
£’000
2020
£’000
26,998
24,577
5,130
4,670
377
1,483
6,990
510
1,356
6,536
The Group’s effective income tax rate of 25.9% of profit before tax is expected to increase following the announcement in the
UK Chancellor’s budget to increase the United Kingdom’s main rate of corporation tax to 25.0%. The increase is expected to
take effect from 1 April 2023.
9 Earnings per share
The calculation of basic earnings per ordinary share (“EPS”) is based on the profit on ordinary activities after taxation of
£19,907,000 (2020: £17,853,000) and on 12,261,477 (2020: 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
19,907
162.4
17,853
145.6
2021
2020
£’000
Pence
£’000
Pence
Annual Report and Accounts 2021 – London Security plc
37
10 Dividends per share
Equity – ordinary shares
Final paid £0.40 (2020: £0.20) per share
Interim paid £0.40 (2020: £0.40) per share
2021
£’000
2020
£’000
4,903
4,904
9,807
2,451
4,905
7,356
The Board is recommending the payment of a final dividend in respect of the year ended 31 December 2021 of £0.42 per ordinary
share (2020: £0.40).
11 Property, plant and equipment
Cost
At 1 January 2020
Additions
On acquisitions of subsidiary undertakings
Disposals
Exchange adjustment
At 1 January 2021
Additions
On acquisitions of subsidiary undertakings
Disposals
Exchange adjustment
At 31 December 2021
Accumulated depreciation
At 1 January 2020
Disposals
Charge for the year
Exchange adjustment
At 1 January 2021
Disposals
Charge for the year
Exchange adjustment
At 31 December 2021
Net book amount
At 31 December 2021
At 31 December 2020
At 31 December 2019
Freehold
land and
buildings
£’000
9,996
69
—
(4)
278
10,339
120
238
—
(395)
Plant and
machinery
£’000
Extinguisher
rental units
£’000
4,167
266
—
(111)
132
4,454
318
59
(62)
(219)
11,691
501
—
(49)
519
12,662
339
—
(41)
(735)
Motor
vehicles
and share
in aircraft
£’000
13,915
2,915
7
(2,012)
753
15,578
3,558
280
(3,436)
(863)
Fixtures,
fittings and
equipment
£’000
5,002
651
—
(230)
205
5,628
545
66
(376)
(298)
Total
£’000
44,771
4,402
7
(2,406)
1,887
48,661
4,880
643
(3,915)
(2,510)
10,302
4,550
12,225
15,117
5,565
47,759
6,261
(1)
149
230
6,639
—
160
(318)
3,263
(91)
247
159
3,578
(50)
213
(185)
10,960
(46)
299
488
11,701
(40)
303
(691)
8,103
(1,653)
2,360
455
9,265
(3,152)
2,490
(486)
4,020
(229)
479
162
4,432
(362)
512
(240)
32,607
(2,020)
3,534
1,494
35,615
(3,604)
3,678
(1,920)
6,481
3,556
11,273
8,117
4,342
33,769
3,821
3,700
3,735
994
876
904
952
961
731
7,000
6,313
5,812
1,223
13,990
1,196
13,046
982
12,164
Depreciation and profit/loss on disposal have been charged to the Income Statement through administrative expenses.
Freehold land is not depreciated.
38
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTSNotes to the financial statements continued for the year ended 31 December 2021
11 Property, plant and equipment continued
Although the Directors have concluded that there is one geographic segment in which the Group operates, the net book
amount can be analysed across the following countries:
United Kingdom
Belgium
Netherlands
Austria
Rest of Europe
12 Right of use assets
At 1 January 2020
Additions
Disposals
Exchange differences
At 1 January 2021
Additions
Disposals
Exchange differences
At 31 December 2021
Accumulated depreciation
At 1 January 2020
Disposals
Charge for the year
Exchange differences
At 1 January 2021
Disposals
Charge for the year
Exchange differences
At 31 December 2021
Net book amount
At 31 December 2021
At 31 December 2020
2021
£’000
4,040
5,769
2,048
1,329
804
2020
£’000
3,384
5,920
2,385
938
419
13,990
13,046
Leasehold
land and
buildings
£’000
1,798
2,049
(702)
69
3,214
2,237
(1,344)
(162)
Motor
vehicles
£’000
1,741
781
(473)
1
2,050
1,061
(350)
(9)
Total
£’000
3,539
2,830
(1,175)
70
5,264
3,298
(1,694)
(171)
3,945
2,752
6,697
551
(702)
1,284
20
1,153
(1,195)
1,276
(56)
628
(473)
702
—
857
(350)
715
—
1,179
(1,175)
1,986
20
2,010
(1,545)
1,991
(56)
1,178
1,222
2,400
2,767
2,061
1,530
1,193
4,297
3,254
Depreciation has been charged to the Income Statement through administrative expenses.
Interest charged on lease liabilities of £83,000 (2020: £68,000) is included within finance costs.
Of the net book amount, £2,065,000 (2020: £1,574,000) is in respect of assets in the United Kingdom. The remaining
£2,232,000 (2020: £1,882,000) is spread throughout other European countries in which the Group has operations.
Annual Report and Accounts 2021 – London Security plc
39
13 Intangible assets
Cost
At 1 January 2020
Additions
On acquisitions of subsidiary undertakings
Disposals
Exchange differences
At 1 January 2021
Additions
On acquisitions of subsidiary undertakings
Disposals
Exchange differences
At 31 December 2021
Accumulated amortisation
At 1 January 2020
Disposals
Charge for the year
Exchange differences
At 1 January 2021
Disposals
Charge for the year
Exchange differences
At 31 December 2021
Net book amount
At 31 December 2021
At 31 December 2020
At 31 December 2019
Goodwill
£’000
Service
contracts
£’000
70,675
6
87
—
1,004
71,772
46
2,263
—
(1,405)
36,514
1,061
514
—
848
38,937
2,428
2,851
—
(1,335)
Software
£’000
1,490
87
—
(119)
62
1,520
225
—
(53)
(86)
Approval
costs
£’000
2,173
90
—
(11)
49
2,301
47
—
—
(136)
Total
£’000
110,852
1,244
601
(130)
1,963
114,530
2,746
5,114
(53)
(2,962)
72,676
42,881
1,606
2,212
119,375
16,222
—
—
979
17,201
—
—
(1,242)
23,818
—
3,184
540
27,542
3,289
(850)
1,252
(117)
101
52
1,288
(51)
106
(72)
2,056
—
42
90
2,188
—
35
(133)
43,348
(117)
3,327
1,661
48,219
(51)
3,430
(2,297)
15,959
29,981
1,271
2,090
49,301
56,717
12,900
54,571
11,395
54,453
12,696
335
232
238
122
113
117
70,074
66,311
67,504
Amortisation has been charged to the Income Statement through administrative expenses.
The Group acquired service contracts from a number of businesses for a total consideration of £1,800,000. In the year the
Group acquired the share capital of four companies. These are not business combinations as defined by IFRS 3 guidance but
assets purchased at cost, the majority of which are service contracts, totalling £628,000, which are included within additions
in the year, not from acquisitions of subsidiaries.
The Group monitors contract retention rates for any indication of impairment.
Additions as a result of the acquisition of subsidiary undertakings are discussed in further detail in note 27.
Impairment tests for goodwill
The Group test annually whether the carrying value of goodwill has suffered any impairment, in accordance with its accounting
policy. The recoverable amount of goodwill is determined based on value-in-use calculations for each CGU. The value of
goodwill is split into four CGUs to assess indicators of impairment. Of the total goodwill £41,606,000 (2020: £40,699,000)
relates to Ansul Group companies (based in Belgium, Austria and the Netherlands), £14,128,000 (2020: £12,930,000) relates to
the integrated UK companies and the balance relates to the remaining CGUs which are individually considered insignificant. Of
the total service contracts £6,830,000 (2020: £5,328,000) relates to Ansul Group companies (based in Belgium, Austria and the
Netherlands), £3,433,000 (2020: £3,382,000) relates to the integrated UK companies and the balance relates to the remaining
CGUs which are individually considered insignificant.
40
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTSNotes to the financial statements continued for the year ended 31 December 2021
13 Intangible assets continued
Impairment tests for goodwill continued
The value-in-use calculations have used pre-tax cash flow projections forecast based on the budget approved by the Board
for the year ending 31 December 2022. The key assumptions used in the cash flow projections were:
Short-term forecasts: Assumptions have been made about the short-term forecasts, used in the impairment assessment.
The budget for 2022 was based on 2021 forecast results with presumed growth of 2.5%.
Growth rate: An estimated growth rate of 1% (2020: 1%) reflecting the mature nature of the market in which the
cash-generating units operate.
Discount rate: The cash flows have then been discounted using a pre-tax rate of 12.5% (2020: 10%). The CGUs 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. In addition, the nature of products, services, production and distribution is
consistent across the region. Accordingly, the Directors have concluded that a single discount rate is appropriate to discount
future cash flows.
Identification of CGUs: CGUs are identified based on operating cash inflows. The degree of integration in IT, product supply
and staff expertise between the component companies is also considered.
Sensitivity analysis: 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.
14 Derivative financial instruments
Interest rate agreements
2021
2020
Assets
£’000
—
Liabilities
£’000
20
Assets
£’000
—
Liabilities
£’000
36
The Group has entered into interest rate agreements capping SONIA at 1.38% 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.
15 Inventories
Raw materials and consumables
Work in progress
Finished goods
2021
£’000
7,382
571
8,470
2020
£’000
6,816
527
7,610
16,423
14,953
The cost of inventories recognised as an expense and included in cost of sales amounted to £33,126,000 (2020: £34,491,000).
No (2020: £Nil) previous inventory write downs have been reversed.
Annual Report and Accounts 2021 – London Security plc
41
16 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
Income tax recoverable
2021
£’000
2020
£’000
31,160
(2,064)
32,186
(2,652)
29,096
31
1,826
1,679
389
29,534
33
1,447
1,954
206
33,021
33,174
Amounts owed by related undertakings do not attract interest, no security is held in respect of these balances and they are
repayable on demand.
In line with our trade receivables accounting policy, the Group applies the IFRS 9 simplified model of recognising lifetime
expected credit losses for all trade receivables as these items do not have a significant financing component. In measuring
expected credit losses, the trade receivables have been assessed on a collective basis as they possess shared credit risk
characteristics. They have been grouped in months past due. On this basis the expected credit loss for trade receivables
was determined as follows:
31 December 2021 trade receivables
Expected credit loss rate
Gross carrying amount
Lifetime expected credit loss
31 December 2020 trade receivables
Expected credit loss rate
Gross carrying amount
Lifetime expected credit loss
Current
0.1%
18,815
13
Current
0.1%
18,606
20
Up to
3 months
3 to
6 months
Over
6 months
Total
0.7% 23.1% 100.0%
1,341
2,826
8,178
1,341
651
59
31,160
2,064
Up to
3 months
3 to
6 months
Over
6 months
Total
1.4%
7,964
108
11.3% 100.0%
2,132
3,484
2,132
392
32,186
2,652
The carrying amounts of the Group’s trade and other receivables are denominated in the following currencies:
Sterling
Euro
Total
These are detailed as Sterling equivalent.
2021
£’000
2020
£’000
8,534
24,487
8,469
24,705
33,021
33,174
42
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTSNotes to the financial statements continued for the year ended 31 December 2021
16 Trade and other receivables continued
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
2021
£’000
2,652
20
(238)
(370)
2020
£’000
1,619
1,560
(295)
(232)
2,064
2,652
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.
17 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.
18 Trade and other payables
Current
Trade payables
Other payables
Other taxation and social security
Accruals
Deferred income
Non-current
Other payables
2021
£’000
2020
£’000
35,681
37,456
2021
£’000
2020
£’000
4,380
3,466
13,393
3,070
3,752
4,476
2,330
14,695
3,240
2,841
28,061
27,582
2021
£’000
2020
£’000
1,058
941
Annual Report and Accounts 2021 – London Security plc
43
19 Deferred income tax
Deferred tax asset
Pension deficit
Decelerated capital allowances
Unrecoverable losses
Deferred tax liabilities
Pension surplus
Intangible assets
Accelerated capital allowances
Amount
recognised/(provided)
2021
£’000
536
242
—
778
(133)
(1,078)
(520)
2020
£’000
587
203
—
790
(157)
(710)
(279)
(1,731)
(1,146)
Amount
unrecognised
2021
£’000
2020
£’000
—
—
1,428
1,428
—
—
1,085
1,085
—
—
—
—
—
—
—
—
Net deferred tax liability
(953)
(356)
1,428
1,085
Non-current assets
Pension deficit
Property, plant and equipment
Non-current liabilities
Pension surplus
Intangible assets
Property, plant and equipment
Net deferred tax liability
Recognised
in other
comprehensive
income
£’000
Recognised
in business
combination
– see note 27
£’000
1 January
2021
£’000
Recognised
in Income
Statement
£’000
31 December
2021
£’000
587
203
790
(157)
(710)
(279)
(1,146)
(356)
(26)
—
(26)
25
—
—
25
(1)
—
—
—
—
(713)
—
(713)
(713)
(25)
39
14
(1)
345
(241)
103
117
536
242
778
(133)
(1,078)
(520)
(1,731)
(953)
Deferred tax is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which
temporary 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, any such reversal is not expected to be material. The deferred tax
asset unrecognised relates wholly to unrecoverable tax losses carried forward within London Security plc Parent Company of
£5,712,000 (2020: £5,712,000).
44
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTSNotes to the financial statements continued for the year ended 31 December 2021
20 Borrowings
Non-current (more than one year but less than five years)
Bank borrowings:
– in one to two years
– between two and five years
– more than five years
Current (one year or less or on demand)
Bank borrowings
Total borrowings
The carrying value of borrowings approximates to its fair value.
2021
£’000
2020
£’000
1,084
141
115
1,340
2,430
3,770
2,112
1,058
—
3,170
2,518
5,688
Interest rates (including the bank’s margin) on the bank loans in existence during the year averaged 1.5% (2020: 1.5%) per
annum. Bank loans are stated net of unamortised finance arrangement costs of £24,000 (2020: £43,000), of which £6,000
(2020: £24,000) is to be amortised after more than one year.
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
– more than five years
2021
£’000
2020
£’000
2,487
1,099
149
119
3,854
2,602
2,163
1,070
—
5,835
The estimated fair value of the interest rate agreement has been included in the Statement of Financial Position as disclosed
in note 14.
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
2021
2.0%
1.3%
1.5%
Total
2021
£’000
930
2,840
3,770
Weighted
average
interest
rate
2020
2.0%
1.3%
1.5%
Total
2020
£’000
1,550
4,138
5,688
Annual Report and Accounts 2021 – London Security plc
45
21 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. In May 2020 the trustees entered into a bulk purchase
annuity contract with Aviva in respect of all benefits in the scheme. The cash flows arising from the annuity policy therefore
match the defined benefit obligation. Any changes in the defined benefit obligation due to changes in financial conditions or
demographic factors are therefore offset by movements in the value of the bulk annuity policy. The scheme’s assets are stated
at their market value at 31 December 2021.
There was a large loss recognised in the prior year due to the purchase of the buy-in annuity policy, because the premium paid
for this policy was larger than the defined benefit obligation relating to the underlying benefits. In line with IAS 19 the Directors
recognised the difference between the purchase cost of the policy and the fair value of the annuity asset as an actuarial loss
which was recognised as a component within other comprehensive income in 2020.
At 31 December 2021 the scheme had a net defined benefit surplus calculated in accordance with IAS 19 using the
assumptions set out of £380,000 (2020: £445,000). 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 (2020: £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.
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
2021
2020
2019
1.80%
3.20–3.70%
n/a
2.70–3.60%
3.20%
1.10%
2.60–3.20%
n/a
2.60%
2.60%
1.80%
2.30–3.20%
n/a
3.10%
2.30%
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
2021
21.4
23.4
2020
21.5
23.4
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
2021
22.4
24.7
2020
22.5
24.7
46
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTSNotes to the financial statements continued for the year ended 31 December 2021 21 Retirement benefit obligations continued
Nu-Swift International Pension Scheme continued
The assets in the scheme were:
Buy-in annuity policy
Bonds
Cash
Present value of the scheme’s liabilities
Surplus in the Nu-Swift Scheme recognised in the Statement of Financial Position
Related deferred tax liability
Percentage
of scheme
assets
2020
96.4%
0.8%
2.8%
Value at
31 December
2021
£’000
Percentage
of scheme
assets
2021
Value at
31 December
2020
£’000
13,096
113
358
13,567
(13,187)
380
(133)
96.5% 14,618
118
429
0.9%
2.6%
15,165
(14,720)
445
(157)
The present value of the scheme’s liabilities includes the GMP equalisation liability which is not covered by the annuity policy.
Analysis of the amount recognised in the Income Statement
Interest credit
Total operating credit
Movement in the defined benefit obligation over the year
Start of the year
Interest cost
Actuarial gain/(loss) arising from changes in financial assumptions
Actuarial gain/(loss) 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
2021
£’000
(5)
(5)
2020
£’000
(40)
(40)
2021
£’000
2020
£’000
(14,720)
(158)
1,005
23
663
(13,383)
(234)
(1,461)
(400)
758
(13,187)
(14,720)
2021
£’000
2020
£’000
15,165
163
(1,098)
(663)
18,342
274
(2,693)
(758)
13,567
15,165
Annual Report and Accounts 2021 – London Security plc
47
21 Retirement benefit obligations continued
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
Loss recognised in the Consolidated Statement of Comprehensive Income
2021
£’000
2020
£’000
1,028
(1,098)
(1,861)
(2,693)
(70)
(4,554)
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 (2020: £59,000); an increase of 0.1% in the inflation rate would decrease the surplus by £51,000 (2020: £60,000).
The impact of a 0.1% increase in the discount rate would be to increase the pension surplus by £169,000 (2020: £203,000);
a decrease of 0.1% in the discount rate would decrease the surplus by £173,000 (2020: £208,000).
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 and are valued each year. The total pension cost of the Ansul Group scheme is determined by an independent
qualified actuary. The scheme’s assets are stated at their market value at 31 December 2021.
The Group paid contributions to the scheme amounting to £298,000 (2020: £297,000) over the year. There are no minimum
contribution requirements for this scheme. The Group expects to make contributions of £298,000 in the next reporting period.
The financial assumptions used to calculate liabilities of the schemes under IAS 19 are:
Discount rate
Inflation rate
Salary increase rate
2021
2020
2019
1.10%
2.00%
1.00%
0.95%
2.00%
1.00%
0.88%
2.00%
1.00%
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
2021
21.9
25.3
2020
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
2021
22.0
25.4
2020
22.0
25.4
48
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTSNotes to the financial statements continued for the year ended 31 December 2021 21 Retirement benefit obligations continued
Ansul Pension Scheme continued
The assets in the scheme were:
Value at
31 December
2021
£’000
Percentage
of scheme
assets
2021
Value at
31 December
2020
£’000
Assets with guaranteed interest with insurer
Present value of the scheme’s liabilities
Deficit in the Ansul scheme recognised in the Statement of Financial Position
Related deferred tax asset
100%
2,658
(4,802)
(2,144)
536
Analysis of the amount recognised in the Income Statement
Current service charge
Interest charge
Total operating 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
Benefits paid
Exchange movement
End of the year
Movement in the fair value of the plan assets over the year
Start of the year
Return on assets
Actuarial gain
Employer contributions
Benefits paid
Exchange movements
End of the year
Percentage
of scheme
assets
2020
100%
2020
£’000
3
14
17
2020
£’000
(4,586)
(300)
(38)
(116)
224
(207)
2,674
(5,023)
(2,349)
587
2021
£’000
23
15
38
2021
£’000
(5,023)
(321)
(42)
49
237
298
(4,802)
(5,023)
2021
£’000
2,674
27
30
298
(211)
(160)
2020
£’000
2,371
24
25
297
(150)
107
2,658
2,674
Analysis of the amount recognised in the Consolidated Statement of Comprehensive Income
Actual return less expected return on pension scheme assets
Actuarial gain/(loss) recognised in the Consolidated Statement of Comprehensive Income
2021
£’000
104
104
2020
£’000
(17)
(17)
Annual Report and Accounts 2021 – London Security plc
49
Notes to the financial statements continued
for the year ended 31 December 2021
21 Retirement benefit obligations continued
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 £26,000 (2020: £22,000); a decrease of 0.1% in the inflation rate would decrease the deficit by £24,000 (2020: £21,000).
The impact of a 0.1% increase in the discount rate would be to decrease the pension deficit by £73,000 (2020: £65,000);
a decrease of 0.1% in the discount rate would increase the deficit by £82,000 (2020: £73,000).
UK stakeholder scheme
The contributions paid by the Group to the defined contribution stakeholder pension schemes in operation within the United
Kingdom amounted to £673,603 in the year ended 31 December 2021 (2020: £500,729).
Total pension costs charged to the Income Statement for all schemes in which the Group participates amounted to £2,676,000
for the year ended 31 December 2021 (2020: £2,476,000) and were wholly recognised in administrative expenses.
22 Provisions
Provision at 1 January 2021
Movement in the year
Provision at 31 December 2021
Current
Rectification
provision
£’000
Non-current
Environmental
provision
£’000
16
(3)
13
172
(22)
150
Total
£’000
188
(25)
163
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.
23 Called up share capital
Authorised
Ordinary shares of 1p each
Allotted, called up and fully paid
Ordinary shares of 1p each
2021
Number
2021
£’000
2020
Number
67,539,188
675
67,539,188
12,261,477
123
12,261,477
2020
£’000
675
123
There are no outstanding options at 31 December 2021.
The mid-market price of the Company’s shares at 31 December 2021 was £26.30 and the range during the year was £23.20
to £26.30.
Share premium account
At 1 January 2021 and 31 December 2021
Capital redemption reserve
At 1 January 2021 and 31 December 2021
The capital redemption reserve has arisen following the purchase of own shares.
£’000
344
£’000
1
50
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS
23 Called up share capital continued
Merger reserve
At 1 January 2021 and 31 December 2021
The merger reserve is not a distributable reserve.
Other reserve
At 1 January 2021
Exchange adjustments
At 31 December 2021
The other reserve relates entirely to the effects of changes in foreign currency exchange rates.
Non-controlling interest
At 1 January 2021
Profit in the year attributable to non-controlling interest
Distribution to non-controlling interest
Reduction in non-controlling interest
At 31 December 2021
£’000
2,033
£’000
8,838
(3,782)
5,056
£’000
377
101
(150)
(210)
118
The non-controlling interest has arisen following the acquisition of 75% of the share capital of Fire Industry Specialists Limited.
In January 2021 the Group increased its ownership to 80% at a cost of £226,000 and in October 2021 the Group increased its
ownership to 90% at a cost of £452,000.
24 Reconciliation of operating profit to cash generated from operations
Operating profit
Depreciation of property, plant and equipment
Depreciation of right of use assets
Amortisation of intangible assets
Profit on disposal of property, plant and equipment
Loss on disposal of intangible assets
Difference between pension charge and cash contributions
Decrease/(increase) in trade and other receivables
(Decrease)/increase in trade and other payables
Decrease in provisions
Increase in inventories
Cash generated from operations
Disposal of property, plant and equipment
Net book value
Profit on disposal of property, plant and equipment
Proceeds
2021
£’000
2020
£’000
27,174
3,678
1,991
3,430
(372)
2
49
1,182
(1,207)
(748)
(1,270)
24,700
3,534
1,986
3,327
(76)
13
(11)
(3,856)
4,447
(68)
(1,134)
33,909
32,862
2021
£’000
310
372
682
2020
£’000
386
76
462
Annual Report and Accounts 2021 – London Security plc
51
Notes to the financial statements continued
for the year ended 31 December 2021
24 Reconciliation of operating profit to cash generated from operations continued
Disposal of intangible assets
Net book value
Loss on disposal of intangible assets
Proceeds
2021
£’000
2
(2)
—
25 Reconciliation of liabilities arising from financing activities
Long-term
borrowings
£’000
Short-term
borrowings
£’000
Lease
liabilities
£’000
2020
£’000
13
(13)
—
Total
£’000
1 January 2021
Cash flow:
– new loans
– repayment of loans
Non-cash items
New lease liabilities
31 December 2021
3,170
2,518
3,302
8,990
322
—
(2,152)
—
1,340
71
(2,090)
1,931
—
2,430
—
(2,072)
(116)
3,229
393
(4,162)
(337)
3,229
4,343
8,113
Non-cash items relate to foreign exchange movements, amortisation of finance arrangement costs and the movement between
current and non-current debt in the year.
The new lease liabilities are also non-cash items arising as a result of the adoption of IFRS 16 as described in accounting
policies in note 2 and analysed in note 26.
26 Lease liabilities
The Group leases various properties and vehicles under non-cancellable lease agreements. The majority of 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.
Following adoption of IFRS 16 the lease liability is initially measured at the present value of the lease payments that are not paid
at the commencement date, discounted using the Group’s incremental borrowing rate.
Maturity analysis – contractual undiscounted cash flows
Within one year
Between two and five years inclusive
More than five years
Total undiscounted lease liabilities at 31 December
Lease liabilities included in Statement of Financial Position at 31 December
Current
Non-current
2021
£’000
1,607
2,529
307
4,443
2021
£’000
1,603
2,740
4,343
2020
£’000
1,494
1,680
147
3,321
2020
£’000
1,451
1,851
3,302
52
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS
27 Acquisitions
In May 2021 the Group purchased the entire share capital of Dania Brandteknik Aps, a company incorporated in, and which
operates in, Denmark.
In June 2021 the Group purchased the entire share capital of Firepoint Services Limited, a company incorporated in England,
which operates in the United Kingdom.
In August 2021 the Group purchased the entire share capital of Advanced Fire Protection Limited, a company incorporated
in Wales, which operates in the United Kingdom.
In October 2021 the Group purchased the entire share capital of Triangle Incendie SAF, a company incorporated in, and which
operates in, France.
In December 2021 the Group purchased the entire share capital of Alfa Prevent Srl, a company incorporated in, and which
operates in, Belgium.
The disclosure of the book and provisional fair values of net assets acquired is as follows:
Property, plant and equipment
Service contracts
Inventories
Receivables
Cash and cash equivalents
Payables
Borrowings
Deferred tax liabilities
Fair value of net assets acquired
Goodwill
Total consideration
Cash and cash equivalents acquired
Net consideration
Satisfied by:
Cash
Contingent consideration
Net consideration
Book value
2021
£’000
Fair value
2021
£’000
643
—
368
1,142
947
(893)
(393)
(10)
—
2,851
—
—
—
—
—
(713)
1,804
2,138
Total
2021
£’000
643
2,851
368
1,142
947
(893)
(393)
(723)
3,942
2,263
6,205
(947)
5,258
Provisional
consideration
2021
£’000
4,871
387
5,258
Annual Report and Accounts 2021 – London Security plc
Annual Report and Accounts 2021 – London Security plc
53
53
27 Acquisitions continued
The contingent 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. The disclosure
above is based on the Group’s best estimate of the level of contingent consideration payable.
The revenue and net profit of Dania Brandteknik Aps since the acquisition date included in the Consolidated Statement
of Comprehensive Income for the year ended 31 December 2021 were £945,000 and £371,000 respectively. On a pro rata
basis the revenue and profit would have been expected to be £1,620,000 and £636,000 had the acquisition taken place
on 1 January 2021.
The revenue and net profit of Firepoint Services Limited since the acquisition date included in the Consolidated Statement
of Comprehensive Income for the year ended 31 December 2021 were £416,000 and £42,000 respectively. On a pro rata
basis the revenue and profit would have been expected to be £832,000 and £84,000 had the acquisition taken place on
1 January 2021.
The revenue and net profit of Advanced Fire Protection Limited since the acquisition date included in the Consolidated
Statement of Comprehensive Income for the year ended 31 December 2021 were £816,000 and £38,000 respectively.
On a pro rata basis the revenue and profit would have been expected to be £1,958,000 and £91,000 had the acquisition
taken place on 1 January 2021.
The revenue and net loss of Triangle Incendie SAF since the acquisition date included in the Consolidated Statement of
Comprehensive Income for the year ended 31 December 2021 were £337,000 and £153,000 respectively. On a pro rata
basis the revenue and loss would have been expected to be £1,348,000 and £612,000 had the acquisition taken place
on 1 January 2021.
The revenue and net profit of Alfa Prevent Srl since the acquisition date included in the Consolidated Statement of
Comprehensive Income for the year ended 31 December 2021 were £Nil and £Nil respectively as there was minimal activity
between the date of acquisition and 31 December 2021. The revenue and profit would have been expected to be £743,000
and £184,000 had the acquisition taken place on 1 January 2021.
54
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTSNotes to the financial statements continued for the year ended 31 December 2021 28 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 90% owned by LS UK Fire Group Limited and its wholly owned subsidiary
Amberfire Limited.
Advanced Fire Protection Limited
AFS Fire and Security Limited
Alarm Masters S.A.
Alfa Prevent Srl
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
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
Dania Brandteknik Aps
DC Security B.V.B.A.
Dimex Technics S.A.
Feuerschutz Hollmann G.m.b.H.
Fire Industry Specialists Limited
Firepoint Services Limited
Fire Protection Holdings Limited
Florian Feuerschutz G.m.b.H.
GC Fire Protection Limited
GFA Premier Limited
Hoyles Limited
Hoyles Fire & Safety Limited
HP Fire Prevention Sprl
Importex S.A.
Kuhn Feuerschutz G.m.b.H.
KW Fire Protection Limited
Le Chimiste Sprl
Linde Brandmateriel Aps
LS UK Fire Group Limited
Ludwig Brandschutztechnik G.m.b.H.
L. W. Safety Limited
Neubrandenburger Feuerschutz Lange G.m.b.H.
Noris Feuerschutzgerate G.m.b.H.
Nu-Swift (Engineering) Limited
Nu-Swift Brandbeveiliging B.V.
Nu-Swift International Limited
One Protect Sarl
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
Fire protection
Fire protection
Fire protection
Intruder alarms
Fire protection
Fire protection
Fire protection
Fire protection
Sub-holding
Fire protection
Fire protection
Fire protection
Sub-holding
Fire protection
Fire protection
Fire protection
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
Country of registration or
incorporation and operation
Wales
England
Belgium
Belgium
Belgium
Luxembourg
England
The Netherlands
The Netherlands
Belgium
Belgium
England
Scotland
Belgium
England
Austria
The Netherlands
The Netherlands
The Netherlands
The Netherlands
England
Denmark
Belgium
Belgium
Germany
England
England
England
Austria
England
England
England
England
Belgium
Belgium
Germany
England
Belgium
Denmark
England
Germany
England
Germany
Austria
England
The Netherlands
England
France
Annual Report and Accounts 2021 – London Security plc
55
28 Group undertakings continued
PMP Manus G.m.b.H.
Prevent Brandbeveiliging B.V.
Pyrotec Fire Protection Limited
Record Brandbeveiliging B.V.
S2 Fire Solutions Limited
Security Alarm Service Company Sprl
Somati FIE N.V.
Total Fire-Stop G.m.b.H.
The General Fire Appliance Co. Limited
Triangle Incendie SAF
Trium N.V.
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
Sub-holding
Fire protection
Intruder alarms
Fire protection
Fire protection
Country of registration or
incorporation and operation
Austria
The Netherlands
England
The Netherlands
England
Belgium
Belgium
Austria
England
France
Belgium
England
England
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,
2 Jubilee Way, Elland HX5 9DY.
The following subsidiaries have taken advantage of exemption from audit under Section 479a of the Companies Act 2006:
Advanced Fire Protection Limited, AFS Fire and Safety Limited, ASCO Extinguishers Company Limited, Beta Fire Protection
Limited, Firepoint Services Limited, Fire Protection Holdings Limited, GC Fire Protection Limited, GFA Premier Limited, Hoyles
Limited, Hoyles Fire & Safety Limited, KW Fire Protection Limited, LS UK Fire Group Limited, L.W. Safety Limited, Nu-Swift
International Limited, Nu-Swift (Engineering) Limited, Premier Fire Limited, Pyrotec Fire Protection Limited, S2 Fire Solutions
Limited, The General Fire Appliance Co. Limited, Tunbridge Wells Fire Protection Limited, TVF (UK) Limited, Fire Services and
Supplies Limited, Alexander Systems Limited, Fire Safety Services Scotland Limited and Cleeve Fire Protection Limited.
Alexander Systems Limited, Cleeve Fire Protection Limited and Fire Services and Supplies Limited all share the registered
address: 56/69 Queens Road, High Wycombe HP13 6AH. Fire Safety Services Scotland Limited’s registered address is:
Unit 1.1, Festival Court, Brand Place, Glasgow G51 1DR.
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:
BWH Manufacturing Limited, Cowley Fire Limited, Fire Reliant Limited, Green Cross Limited, KDN Fire Protection Limited,
L & P Fire Safety Equipment Limited, LS Fire Group Limited, Modern Fire Extinguisher Services Limited, Premier Fire Limited,
North Staffs Fire Limited, Nu-Swift Limited, United Fire Alarms Limited and Wilts Fire Limited all share the registered address:
Premier House, 2 Jubilee Way, Elland HX5 9DY.
1st Quote Fire Limited, Assured Fire Protection & Safety Limited, Firebreak Fire Securities Limited and Swift-N-Sure (Fire Appliances)
Limited all share the registered address: Unit 1.1, Festival Court, Brand Place, Glasgow G51 1DR.
Firex UK Limited, MK Fire Limited, Thames Valley Fire Protection Limited, Trafalgar Compliance Services Limited,
TVF Alarms Limited, TVF Systems Services Limited and Ulysses Fire Services Limited all share the registered address:
56/69 Queens Road, High Wycombe HP13 6AH.
Luke & Rutland Limited and Pyrotec Fire Detection Limited share the registered address: Caburn Enterprise Park, Ringmer BN8 5NP.
Amberfire Limited and Firestop Services Limited share the registered address: Unit 15, Cedar Parc, Lincoln Road, Doddington,
Lincolnshire LN6 4RR.
All of these entities have been included within the consolidation.
56
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTSNotes to the financial statements continued for the year ended 31 December 2021
29 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.
30 Related party transactions
All related party transactions are conducted on an arm’s length basis.
During the year the Group incurred costs amounting to £705,574 (2020: £747,414) 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 £63,000 (2020: £71,000) in relation to the Services Agreement by Andrews Sykes.
Andrews Sykes is related through common control.
The balance disclosed in note 16 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 £8,773 (2020: £9,271).
The Group made sales to fire companies in Switzerland controlled by J.G. Murray in the year of £434,177 (2020: £526,939).
The Group made purchases from Fire Industry Specialists Limited in the year of £538,790 (2020: £840,361).
Fire Industry Specialists Limited declared a dividend in the year of £601,923 (2020: £478,974) to LS UK Fire Group Limited.
The Group incurred £Nil (2020: £57,000) of expenditure on behalf of J.G. Murray during the year.
The Group incurred £156,000 (2020: £70,000) of expenditure on behalf of J-J. Murray during the year. This amount was
reimbursed in the year.
The Group incurred £6,000 (2020: £Nil) of expenditure on behalf of J-P. Murray during the year. This amount was reimbursed
in the year.
31 Post balance sheet events
Subsequent to the year end the Group has completed the acquisition of further service contracts for a total of £4,117,000
(2020: £1,359,000).
Annual Report and Accounts 2021 – London Security plc
57
Parent Company balance sheet
as at 31 December 2021
Fixed assets
Tangible assets
Investments
Current assets
Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year
Borrowings
Creditors
Net current assets
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
Total shareholders’ funds
Notes
2021
£’000
2020
£’000
2
3
4
5
6
5
8
9
727
49,804
51
49,804
50,531
49,855
920
2,439
3,359
(619)
(301)
(920)
1,251
791
2,042
(619)
(318)
(937)
2,439
1,105
52,970
50,960
(311)
(5)
(316)
(931)
(10)
(941)
52,654
50,019
123
344
1
52,186
123
344
1
49,551
52,654
50,019
The Parent Company’s profit for the year was £12,442,000 (2020: £9,267,000).
The registered number of the Company is 00053417.
The notes on pages 60 to 63 are an integral part of these financial statements.
The financial statements on pages 58 and 59 were approved by the Board of Directors on 17 May 2022 and were signed on its
behalf by:
J.G. Murray
Chairman
17 May 2022
58
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS
Parent Company statement of changes in equity
for the year ended 31 December 2021
At 1 January 2020
Total comprehensive income for the year
Profit for the financial year
Contributions by and distributions to owners of the Company:
– dividends
At 1 January 2021
Total comprehensive income for the year
Profit for the financial year
Contributions by and distributions to owners of the Company:
– dividends
At 31 December 2021
Called up
share
capital
£’000
123
Share
premium
reserve
£’000
344
Capital
redemption
reserve
£’000
Profit
and loss
account
£’000
Shareholders’
funds
£’000
1
47,640
48,108
—
—
—
123
—
344
—
—
1
9,267
9,267
(7,356)
(7,356)
49,551
50,019
—
—
— 12,442
12,442
—
123
—
344
—
1
(9,807)
(9,807)
52,186
52,654
The notes on pages 60 to 63 are an integral part of these financial statements.
Annual Report and Accounts 2021 – London Security plc
59
Notes to the Parent Company financial statements
for the year ended 31 December 2021
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:
l reconciliation of the number of shares outstanding from the beginning to the end of the year;
l Statement of Cash Flows and related notes; and
l 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:
l presenting a Parent Company profit and loss account under Section 408 of the Companies Act 2006; and
l 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 United Kingdom. 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.
60
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS 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 2021
Additions
Disposals
At 31 December 2021
Accumulated depreciation
At 1 January 2021
Disposals
Charge for the year
At 31 December 2021
Net book amount
At 31 December 2021
At 31 December 2020
3 Investments
Cost
At 1 January 2021 and 31 December 2021
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 28 of the Group accounts.
4 Debtors
Amounts falling due within one year
Amounts owed by Group undertakings
Income tax recoverable
Share in
aircraft
£’000
1,019
781
(1,019)
781
968
(968)
54
54
727
51
Shares in
subsidiary
undertakings
£’000
49,804
2021
£’000
76
844
920
2020
£’000
605
646
1,251
Amounts owed by Group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable
on demand.
Annual Report and Accounts 2021 – London Security plc
61
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
2021
£’000
2020
£’000
311
—
311
619
930
619
312
931
619
1,550
Interest rates (including the bank’s margin) on the bank loans in existence during the year averaged 1.99% (2020: 1.98%)
per annum. Bank loans are stated net of unamortised finance arrangement costs of £15,000 (2020: £25,000), of which £4,000
(2020: £14,000) 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
2021
1.99%
1.99%
Total
2021
£’000
930
930
Weighted
average
interest
rate
2020
Total
2020
£’000
1,550
1.98%
1,550
1.98%
2021
£’000
—
301
301
2020
£’000
240
78
318
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
2021
£’000
—
—
2020
£’000
—
—
2021
£’000
1,428
1,428
2020
£’000
1,085
1,085
The unrecoverable tax loss carried forward is £5,712,000 (2020: £5,712,000).
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 25%.
8 Derivative financial instruments
Interest rate agreements
62
London Security plc – Annual Report and Accounts 2021
2021
2020
Assets
£’000
—
Liabilities
£’000
5
Assets
£’000
—
Liabilities
£’000
10
Notes to the Parent Company financial statements continued for the year ended 31 December 2021STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS
8 Derivative financial instruments continued
The Company has entered into an interest rate agreement which caps SONIA at 1.3807%. 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
2021
Number
2021
£’000
2020
Number
2020
£’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 2021.
The mid-market price of the Company’s shares at 31 December 2021 was £26.30 and the range during the year was £23.20
to £26.30.
The Parent Company had no employees during the year (2020: Nil).
The remuneration paid to the Parent Company auditor in respect of the audit of the Group and Parent Company financial
statements for the year ended 31 December 2021 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 2021 of £0.42 per
ordinary share (2020: £0.40).
10 Commitments and contingent liabilities
The Parent Company had no financial or other commitments at 31 December 2021 (2020: £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 2021 this guarantee amounted to £2,118,000 (2020: £3,750,000). 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
All related party transactions are conducted on an arm’s length basis.
During the year the Company incurred costs amounting to £502,236 (2020: £548,618) 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 £63,000 (2020: £71,000) in relation to the Services Agreement by Andrews Sykes.
Andrews Sykes is related through common control.
The Company incurred £Nil (2020: £57,000) of expenditure on behalf of J.G. Murray during the year.
The Company incurred £156,000 (2020: £70,000) of expenditure on behalf of J-J. Murray during the year. This amount was
reimbursed in the year.
The Company incurred £6,000 (2020: £Nil) of expenditure on behalf of J-P. 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.
Annual Report and Accounts 2021 – London Security plc
63
Notice of Annual General Meeting
NOTICE IS GIVEN THAT the Annual General Meeting of London Security plc (the “Company”) will be held at 2 Jubilee Way,
Elland, West Yorkshire HX5 9DY, on 22 June 2022 at 11.30 am 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 2021 and the Reports of the Directors and Auditor
and the Directors’ Remuneration Report for that year.
2. To re-elect J.G. Murray as a Director, who retires by rotation under article 23.2 of the Company’s articles of association.
3. To re-elect J-P. Murray 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 2021 of £0.42 per ordinary share.
6. That Grant Thornton UK LLP be re-appointed as auditor 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.
7.
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.
64
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS
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
17 May 2022
Registered office
Premier House
2 Jubilee Way
Elland
West Yorkshire
HX5 9DY
Notes
1. On 21 February 2022 the UK government announced the end of restrictions in response to Covid-19. The Company
confirms that shareholders are able to attend in person should they wish to do so. However, we strongly encourage
shareholders to vote on all resolutions by completing the enclosed form of proxy for use at that Meeting, which you are
requested to return in accordance with the instructions on the form.
2. The outcome of the resolutions will as usual be determined by shareholder vote based on the proxy votes we receive. You
are strongly encouraged to vote by proxy on the resolutions contained in the AGM Notice. You are encouraged to appoint
the “Chairman of the Meeting” as your proxy rather than another person who will not be permitted to attend the Meeting.
3. 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 form of proxy
4. 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
(c) received no later than 48 hours before the time of the Meeting.
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.
Annual Report and Accounts 2021 – London Security plc
Annual Report and Accounts 2021 – London Security plc
65
65
Notice of Annual General Meeting continued
Notes continued
Appointment of proxy by joint members
5. 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.
Changing proxy instructions
6. 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
7.
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
8. As at 9 am on 17 May 2022, the Company’s issued share capital comprised 12,261,471 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 9 am on 17 May 2022 was 12,261,477.
Documents on display
9. The register of Directors’ interests will be available for inspection at the registered office of the Company from 17 May 2022
until the time of the Meeting and for at least 15 minutes prior to the Meeting and during the Meeting.
Communication
10. 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):
l 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.
66
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS
Group companies
The United Kingdom
Advanced Fire Protection Limited
Unit Tp3 Main Avenue
Treforest Industrial Estate
Pontypridd CF37 5UR
Tel:
Email:
Website: afpwales.com
01443 843 927
info@afpwales.com
AFS Fire and Security Limited
Buzzard Court
Mullacott Industrial Estate
Ilfracombe EX34 8PX
Tel:
01271 864 754
Website: afsfireandsecurity.co.uk
ASCO Extinguishers Company Limited
Unit 1.1
Festival Court
Brand Place
Glasgow G51 1DR
Tel:
Email:
Website: www.asco.uk.com
0141 427 1144
customer.service@asco.uk.com
Beta Fire Protection Limited
Unit 18
Western Road Industrial Estate
Stratford-upon-Avon
Warwickshire CV37 0AH
01789 292 050
Tel:
Email:
info@betafire.co.uk
Website: www.betafireprotection.com
City Fire Protection and Maintenance
Services LLP
Trenton House
59A Imperial Way
Croydon CR0 4RR
Tel:
Email:
Website: www.cityfire.co.uk
0208 649 7766
admin@cityfire.co.uk
Firestop Services Limited
Unit 15
Cedar Parc
Lincoln Road
Doddington
Lincolnshire LN6 4RR
Tel:
Email:
Website: www.firestopservices.co.uk
01507 723 322
enquiries@fire-stop.co.uk
Fire Industry Specialists Limited
Unit 15
Cedar Parc
Lincoln Road
Doddington
Lincolnshire LN6 4RR
Tel:
Email:
Website: www.fisltd.co.uk
01507 522 466
enquiries@fisltd.co.uk
Amberfire Limited
Unit 15
Cedar Parc
Lincoln Road
Doddington
Lincolnshire LN6 4RR
01673 885 229
Tel:
Email:
info@amber-fire.co.uk
Website: www.amber-fire.co.uk
Firepoint Services Limited
Unit 2
Longridge Court
Barrington Industrial Estate
Bedlington NE22 7DF
MK Fire Limited
59/69 Queens Road
High Wycombe
Buckinghamshire HP13 6AH
Tel:
Email:
Website: www.mkfire.co.uk
01494 769 744
customer.service@mkfire.co.uk
Nu-Swift International Limited
Nu-Swift (Engineering) Limited
Premier House
2 Jubilee Way
Elland
West Yorkshire HX5 9DY
0191 251 2233
Tel:
Email:
info@firepointservices.co.uk
Website: www.firepointservices.co.uk
Tel:
Email:
Website: www.nu-swift.co.uk
01422 372 852
customer.service@nu-swift.co.uk
Pyrotec Fire Protection Limited
Caburn Enterprise Park
Ringmer
East Sussex BN8 5NP
Tel:
Email:
Website: www.pyrotec.co.uk
0800 634 9953
sales@pyrotec.co.uk
S2 Fire Solutions Limited
Unit 14 Littleton Drive
Cannock WS12 4TS
Tel:
Email:
Website: S2fire.co.uk
0845 519 8186
sales@s2fire.co.uk
Tunbridge Wells Fire Protection Limited
Caburn Enterprise Park
Ringmer
East Sussex BN8 5NP
Tel:
Email:
Website: www.twfpltd.co.uk
01825 767 600
customer.service@twfpltd.co.uk
TVF (UK) Limited
59/69 Queens Road
High Wycombe
Buckinghamshire HP13 6AH
Tel:
Email:
Website: www.tvfltd.co.uk
01494 450 641
customer.service@tvfltd.co.uk
GC Fire Protection Limited
Premier House
2 Jubilee Way
Elland
West Yorkshire HX5 9DY
Tel:
Email:
Website: www.gcfireprotection.co.uk
0208 391 7310
customer.service@gcfireprotection.co.uk
GFA Premier Limited
Premier House
2 Jubilee Way
Elland
West Yorkshire HX5 9DY
Tel:
Email:
01422 377 521
customer.service@gfapremier.co.uk
Hoyles Fire & Safety Limited
Premier House
2 Jubilee Way
Elland
West Yorkshire HX5 9DY
Tel:
Email:
Website: www.hoyles.co.uk
01422 314 351
customer.service@hoyles.co.uk
KW Fire Protection Limited
Premier House
2 Jubilee Way
Elland
West Yorkshire HX5 9DY
Tel:
Email:
Website: kwfire.co.uk
0161 628 9379
enquiries@kwfire.co.uk
L. W. Safety Limited
Premier House
2 Jubilee Way
Elland
West Yorkshire HX5 9DY
Tel:
Email:
Website: www.lwsafety.co.uk
01422 314 350
customer.service@lwsafety.co.uk
Annual Report and Accounts 2021 – London Security plc
67
Nu-Swift Brandbeveiliging B.V.
Ringoven 45
6826 TP Arnhem
00 31 263 630330
Tel:
Email:
info@nu-swift.nl
Website: www.nu-swift.nl
NL Brandbeveiliging B.V.
Petunialaan 1D
5582 HA Waalre
00 40 248 2196
Tel:
Email:
info@nlbrandbeveiliging.nl
Website: www.nlbrandbeveiliging.nl
Prevent Brandbeveiliging B.V.
Maasdijkseweg 107
2291 PJ Wateringen
00 31 174 526700
Tel:
Email:
info@prevent.brandbeveiliging.nl
Website: www.preventbrandbeveiliging.nl
Record Brandbeveiliging B.V.
Oostergracht 24
3763 LZ Soest
00 31 356 027966
Tel:
Email:
info@recordbrandbeveiliging.nl
Website: www.recordbrandbeveiliging.nl
Braho Brandpreventie B.V.
Maasdijkseweg 107
2291 PJ Wateringen
00 31 793 410708
Tel:
Email:
info@braho.nl
Website: www.braho.nl
Blusdesign B.V.
Bergweg 35b
3904 HL Veenendaal
00 31 318 508 369
Tel:
Email:
info@blusdesign.com
Website: www.blusdesign.com
Brandpreventie Groep B.V.
Daalderweg 22
507 DT Zaandam
0031 75 631 5558
Tel:
Email:
info@brandpreventiegroep.nl
Website: www.brandpreventiegroep.nl
Group companies continued
Belgium
Alarm Masters S.A.
Hekkestraat 45
9308 Aalst
00 32 5237 3409
Tel:
Email:
info@alarmmasters.be
Website: www.alarmmasters.be
Alfa Prevent Srl
Rue de Maestricht 49
4651 Battice
00 32 8765 8651
Tel:
Email:
info@alfaprevent.be
Website: www.alfaprevent.be
All-Protec N.V.
Bogaertstraat 16
9910 Knesslare
Tel:
Email:
00 32 9375 2044
info@all-protec.be
Ansul S.A.
Ansul Belgium S.A.
Industrialaan 35
B-1702 Groot-Bijgaarden
00 32 2467 7211
Tel:
Email: mail@ansul.be
Website: www.ansul.be
Dimex Technics S.A.
42 Rue de l’Eglise
4710 Lontzen Herbesthal
Tel:
Email:
00 32 8789 0401
info@dimex-technics.be
HP Fire Prevention Srl
406 Chausee de Wavre
1300 Wavre
00 32 1060 4402
Tel:
info@hpfire.be
Email:
Website: www.hpfire.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 Srl
42 Rue de l’Eglise
4710 Lontzen Herbesthal
00 32 8645 6789
Tel:
Email:
info@securityalarmservice.be
Website: www.securityalarmservice.be
Somati FIE N.V.
Industrielaan 19a
9320 Erembodegem
00 32 5385 2222
Tel:
Email:
info@somatifie.be
Website: www.somatifie.be
Le Chimiste Srl
406 Chausee de Louvain
1300 Wavre
00 32 1086 8419
Tel:
Email:
info@lechimiste.be
Website: www.lechimiste.be
Braco B.V.
Hekkestraat 45
9308 Aalst
Tel:
Email:
00 32 5321 4570
info@bracofireprotection.be
DC Security B.V.
Vaartstraat 10
2235 Hulshout
00 32 1522 5570
Tel:
info@dcsecurity.be
Email:
Website: www.dcsecurity.be
Trium N.V.
Herseltsesteenweg 72
3200 Aarschot
Belgium
00 32 78/15 8085
Tel:
Email:
info@trium.be
Website: www.trium.be
Luxembourg
A.L.P.I. sarl
10 Rue Robert Krieps
4702 Petange
00 352 2631 3013
Tel:
Email:
alpi@alpi.lu
Website: www.alpi.lu
The Netherlands
Ansul B.V.
Ansul Solutions B.V.
Platinastraat 15
8211 AR Lelystad
00 31 320 240864
Tel:
info@ansul.nl
Email:
Website: www.ansul.nl
Boensma Brandbeveiliging B.V.
Burenweg 26
7621 GX Borne
00 31 541 870040
Tel:
Email:
info@boensmabrandbeveiliging.nl
Website: www.boensmabrandbeveiliging.nl
68
London Security plc – Annual Report and Accounts 2021
STRATEGIC REPORTCORPORATE GOVERNANCE••FINANCIAL STATEMENTS P.M.P. Feuerlöschgeräte Produktions- und
Vertriebsges.m.b.H
Waltendorfer Hauptstrasse 5
8010 Graz
Tel:
Email:
Website: www.pyrus-pmp.at
00 43 316 46 15 66
office@pyrus-pmp.at
Florian Feuerschutz G.m.b.H.
Dorf 19
5732 Mühlbach im Pinzgau
Tel:
Email:
Website: www.feuerschutz.at
00 43 6566 7450
office@feuerschutz.at
France
One Protect sarl
Z.I. Sainte Agathe
Rue Lavoisier
57192 Florange
Tel:
Email:
00 33 382 59 32 40
contact@oneprotectsarl.com
Triangle Incendie SAF
Rue Isaïe Sellier 140
80130 Friville-Escarbotin
Tel:
Email:
Website: www.triangleincendie.fr
00 33 322 26 99 91
contact@triangleincendie.fr
Germany
LUDWIG Brandschutztechnik G.m.b.H.
Gewerbestrasse 2
D-24392 Suederbrarup
00 49 4641 8242
Tel:
Email:
info@brandschutztechnik-ludwig.de
Website: www.brandschutztechnil-ludwig.de
IFH Feuerschutz Hollmann G.m.b.H.
Ihmerter Strasse 211
58675 Hemer
00 49 2372 81066
Tel:
Email:
info@feuerschutz-hollmann.de
Website: www.feuerschutz-hollmann.de
Kuhn Feuerschutz G.m.b.H.
Schmückebergsweg 12
34576 Homberg/Efze
00 49 5681 9944 10
Tel:
info@kuhn-feuerschutz.de
Email:
Website: www.kuhn-feuerschutz.de
Neubrandenburger Feuerschutz Lange
G.m.b.H.
Zu den Hufen 3
17034 Neubrandenburg
00 49 3954 2499 40
Tel:
Email:
info@feuerschutz-neubrandenburg.de
Website: www.feuerschutz-neubrandenburg.de
Denmark
Linde Brandmateriel Aps
Industrivej 51A
4000 Roskilde
Tel:
Email:
Website: www.lindebrand.dk
0033 31 3100
lindebrand@lindebrand.dk
Dania Brandteknik Aps
Metalgangen 19C
2690 Karlslunde
Tel:
Email:
Website: www.firetrace.dk
0045 5616 9100
info@firetrace.dk
Austria
Total Fire-Stop Brandschutztechnik G.m.b.H.
Tillmanngasse 5
1220 Wien
00 431 259 36310
Tel:
Email:
info@total.at
Website: www.total.at
Blesberger Ges.m.b.H.
Hasnerstrasse 12
A-4020 Linz
Tel:
0043 732 73 32 34
Website: www.blesberger.at
Noris Feuerschutzgerate G.m.b.H.
Baumkircherstrasse 2
8020 Graz
Tel:
Email:
Website: www.noris.at
00 43 316 71 18 21
zentrale@noris.at
CBP012504
London Security plc’s commitment to environmental issues is reflected in this
Annual Report, which has been printed on Novatech Silk, an FSC® certified material.
This document was printed by L&S using its environmental print technology, which
minimises the impact of printing on the environment, with 99% of dry waste diverted
from landfill. Both the printer and the paper mill are registered to ISO 14001.
London Security plc
London Security plc
Premier House
2 Jubilee Way
Elland
West Yorkshire
HX5 9DY
www.londonsecurity.org