Half-year Results

Chairman's statement

J-J. Murray, Chairman

Financial highlights

• Revenue £127.6m (2025: £116.9m)
• Operating profit £14.1m (2025: £12.4m)
• Earnings per share 80.4p (2025: 70.8p)

Trading

The financial highlights illustrate that the Group's revenue increased by £10.7 million (9.2%) to £127.6 million.

Operating profit increased by £1.7 million (13.7%) to £14.1 million.

These results include the favourable movement in the Euro to Sterling average exchange rate, which has decreased from 1.19 to 1.15. If the 2026 results from the European subsidiaries had been translated at 2025 rates, revenue would have been £124.1 million instead of £127.6 million, which would represent an increase of 6.2% on the prior year. On the same basis, operating profit would have been £13.6 million instead of £14.1 million.

The Group has continued its strategy of investing in the engineering workforce addressing the shortage of engineers with an ongoing recruitment drive. After an initial period of training these new engineers are now servicing the Group's customers. Their performance is expected to accelerate through the year ahead with active mentoring and further training from their field service managers. Improved service performance is driving organic growth in the service pool.

Although inflation has moderated since last year, the Group continues to experience upward input price pressures. These supply price increases have been passed on to the Group's customers where possible.

Acquisitions

In the six months to the end of June the Group strengthened its presence in the Netherlands and the United Kingdom. In the United Kingdom it acquired 100% of the share capital of a standalone fire protection company, Lindum Fire Services Limited. It also acquired service contracts for integration into the Group's existing subsidiaries from other sources in the Netherlands and the United Kingdom.

It remains a principal aim of the Group to grow through acquisition. Acquisitions are being sought throughout Europe and the Group will invest at the upper end of the price spectrum where an adequate return is envisaged by the Board.

Cash and financing

The Group's cash balance at 30 June 2026 was £54.8 million. This is an increase of £8.9 million on the 31 December 2025 balance of £45.9 million.

Prospects

Demand for the Group's products and services remains strong as they are non-discretionary expenditure items. The London Security Group has a healthy balance sheet, strong cash reserves and a track record for good cash generation.

Dividends

A final dividend in respect of 2025 of £0.42 per ordinary share was paid to shareholders on 10 July 2026.

J-J. Murray

Chairman

Consolidated income statement

for the six months ended 30 June 2026

The above are all as a result of continuing operations.

Consolidated statement of comprehensive income

for the six months ended 30 June 2026

Other comprehensive (expense)/income:

Items that will not be reclassified subsequently to profit or loss:

Notes to the financial statements

for the six months ended 30 June 2026

1 Nature of information

The financial information contained in this Interim Statement has been neither audited nor reviewed by the auditor and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The financial information for the six months ended 30 June 2026 has been prepared applying the accounting policies and presentation that were applied in the preparation of the Group's published consolidated financial statements for the year ended 31 December 2025. The principal risks and uncertainties as disclosed in the year end accounts are considered to be consistent with those that are still applicable now.

Comparative figures for the year ended 31 December 2025 have been extracted from the statutory accounts for the year ended 31 December 2025, which have been delivered to the Registrar of Companies. The Independent Auditor's Report on those accounts was unqualified and did not contain an emphasis of matter paragraph or any statement under Section 498 of the Companies Act 2006.

2 Basis of preparation

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities and income and expense. Actual results may differ from these estimates.

3 Earnings per share

The calculation of basic earnings per ordinary share is based on the profit on ordinary activities after taxation of £9,851,000 (2025: £8,685,000) and on 12,259,340 (2025: 12,259,877) ordinary shares, being the weighted average number of ordinary shares in issue during the period.

For diluted earnings per ordinary share, the weighted average number of shares in issue is adjusted to assume conversion of all potentially dilutive 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.

4 Actuarial valuation of the pension scheme

As permitted under IAS 19 the Group has not prepared an actuarial valuation of the pension scheme assets and liabilities for the Interim Statement 2026. In accordance with IAS 19 such a valuation will be prepared for the purposes of the Group's Annual Report and Accounts 2026.