London Security PLC on Friday said its annual profit only slightly declined last year as revenue and costs increased, and said that while markets face a downturn it is ‘well placed’ to weather the potentially difficult climate.

The West Yorkshire, England-based manufacturer of fire protection products said its pretax profit shrank negligibly to £26.954 million in 2022 from £26.998 million in 2021, thereby remaining mostly stable when rounded up, at £27.0 million.

London Security said revenue increased 13% over the same periods to £188.9 million from £166.6 million. Earnings before interest, tax, depreciation and amortisation increased 2.7% to £37.3 million from £36.3 million.

However London Security also said distribution costs grew by 18% to £70.6 million from £60.0 million, while administrative expenses went up 14% to £41.4 million from £36.4 million. Cost of sales also increased 15% to £49.7 million from £43.1 million.

London Security declared a total dividend for the year of 84 pence per share, up 5.0% from 80p per share for 2021.

London Security said last year’s performance was ‘largely a return to normality’, as ‘The high level of business failures predicted by some commentators did not occur.’

Going forward, London Security will continue targeting growth through acquisitions which are ‘being sought throughout Europe’.

Chair Jacques Gaston Murray commented: ‘The markets in which we operate are entering what is likely to be a period of low growth with continued high inflation. The London Security group however has a healthy balance sheet, strong cash reserves and a track record for good cash generation. The Board therefore considers that the Group is well placed to weather any downturn.’

Shares in London Security were up 7.8% at 2,965.00p in London on Friday morning.

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