London Security PLC on Friday said its half-year results reflected a period of low growth, as inflation reduces market activity and exchange rates increase.

The West Yorkshire, England-based manufacturer of fire protection products said its revenue for the six months ended June 30 was £110.9 million, up 1.9% on-year from £108.8 million. Pretax profit fell 1.5% to £13.4 million from £13.6 million.

The group’s cash balance as of June 30 was £39.5 million, an increase of 21% from £32.7 million on December 31.

No dividend was declared for the six-month period, unchanged from last year.

The company’s results included the ‘adverse movement’ of the Euro to Sterling exchange rate, London Security explained, which has increased from 1.15 to 1.17. It also experienced upward input price pressures, including supply price increases, which it passed on to customers where possible.

‘Interest rates which were increased to combat inflation remain high and are depressing growth and reducing our customers’ appetite to invest. All the countries in which we operate are experiencing low or no growth’, the company added.

However, London Security managed to strengthen its position in Belgium, the Netherlands, Germany, Austria, Luxembourg and France during the six-month period by acquiring service contracts to be integrated into the group’s existing subsidiaries. The company said acquisition was a ‘principal aim’ going forwards, to achieve growth.

The company said it has a ‘healthy balance sheet, strong cash reserves and a track record for good cash generation’. Therefore, it considers itself ‘well-placed’ to cope with a period of low growth.

Shares in London Security were untraded at 3,810.00 pence each in London on Friday morning.

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