London Security has reported a modest rise in revenue, driven by a series of acquisitions across Europe.
However, the London-listed company noted that its overall financial performance has been impacted by the weakening Euro, which has offset some of these gains.
In the six months ending 30 June 2024, London Security’s revenue increased to £110.9m, up from £108.8m in the same period in 2023.
It said this growth had been driven primarily by a string of contract takeovers in Belgium, the Netherlands, Germany, Austria, Luxembourg, and France as part of its goal to expand its presence in mainland Europe.
Operating profit at the group fell by £0.3m to £13.4m, a slight dip of 2.2 per cent compared to the previous year.
In a statement published to the London Stock Exchange on Friday morning, London Security said: “These results include the adverse movement in the Euro to Sterling average exchange rate, which has increased from 1.15 to 1.17.
“If the 2024 results from the European subsidiaries had been translated at 2023 rates, revenue would have been £113.2m instead of £110.9m, which would represent an increase of 4.0 per cent on the prior year.
“On the same basis, operating profit would have been £13.7m instead of £13.4m, stable compared to 2023.
“The first six months of 2024 were a period of consolidation for London Security following the 26 per cent increase in operating profit that was enjoyed in 2023.
“Whilst operating profit is broadly stable versus 2023, this still represents a 23 per cent increase on 2022.
“The core servicing business remains very consistent with a slight fall in special projects, the instance of which is unpredictable.
Although inflation has moderated since last year, we continue to experience upward input price pressures. These supply price increases have been passed on to our 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.”