London Security (LSC) AI Stock Analysis

• Market Cap: £422.97M
• Dividend Yield: 3.54%
• Average Volume (3M): 14.00
• Price to Earnings (P/E): 19.5
• Beta (1Y): -0.09
• Revenue Growth: 0.43%
• EPS Growth: -6.87%
• Country: UK
• Employees: 1,635
• Sector: Industrials
• Sector Strength: 84
• Industry: Security & Protection Services
• EPS (TTM): 0.98
• Shares Outstanding: 12,259,877
• 10 Day Avg. Volume: 14
• 30 Day Avg. Volume: 14
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £3,960.00
• Price Target Upside: 14.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: 3,960.00p ▲(14.78% Upside)

London Security's strong financial performance and positive corporate events are significant strengths. However, mixed technical indicators and a fair valuation score suggest cautious market sentiment. The overall stock score reflects a balance of solid financial health against uncertain market momentum.

London Security Business Overview & Revenue Model

Company Description

London Security (LSC) is a leading provider of comprehensive security solutions in the UK, specializing in both physical and electronic security services. The company operates across various sectors, including residential, commercial, and industrial security. LSC offers a diverse range of core products and services, including manned guarding, mobile patrols, CCTV installation and monitoring, access control systems, and security consultancy. With a commitment to safety and innovation, LSC aims to protect clients' assets and ensure peace of mind through tailored security strategies.

How the Company Makes Money

London Security generates revenue through multiple key streams. Primarily, the company earns income from service contracts for manned guarding and mobile patrol services provided to various clients across different sectors. Additionally, LSC profits from the installation and maintenance of electronic security systems, such as CCTV and access control, which are often bundled into long-term service agreements to ensure recurring revenue. The company also engages in security consultancy, offering expert advice and risk assessments that lead to high-value contracts. Significant partnerships with technology providers enhance their offerings and attract more clients, while strong relationships with local businesses and government entities bolster their market presence and revenue potential.

London Security Financial Statement Overview

Summary

London Security exhibits robust financial health with significant revenue growth and strong gross profit margins. The balance sheet shows low leverage risk with a high equity ratio. Cash flow management is generally effective, but there is a need to monitor capital expenditure impacts.

Income Statement

London Security demonstrates robust revenue growth with a 44% increase from 2019 to 2024. The company maintains a strong gross profit margin around 73%, indicating efficient cost control. Net profit margins have remained stable, reflecting consistent profitability. However, there is a slight decline in EBIT margin, which could indicate rising operational costs.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio, showcasing financial stability and low leverage risk. The equity ratio is high, indicating a solid asset base funded largely by equity. Return on Equity (ROE) remains healthy, though there is a slight decrease, suggesting potential inefficiencies in generating profit from equity.

Cash Flow

The company maintains a stable operating cash flow, with a positive free cash flow trend, albeit with volatility in free cash flow growth rates. The operating cash flow to net income ratio indicates efficient cash generation from profit. However, the free cash flow has slightly decreased recently, indicating potential investment in capital expenditures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	220.65M	219.71M	188.90M	166.63M	152.72M
Gross Profit	161.90M	160.72M	129.05M	114.44M	106.49M
EBITDA	41.71M	42.88M	37.28M	36.29M	33.61M
Net Income	21.66M	23.26M	20.22M	19.91M	17.85M
Balance Sheet
Total Assets	205.13M	202.14M	195.88M	174.64M	169.43M
Cash, Cash Equivalents and Short-Term Investments	29.56M	32.74M	33.96M	35.68M	37.46M
Total Debt	7.57M	7.15M	7.91M	8.11M	8.99M
Total Liabilities	50.16M	49.90M	50.03M	42.90M	43.31M
Stockholders Equity	154.97M	152.24M	145.86M	131.63M	125.75M
Cash Flow
Free Cash Flow	15.02M	19.05M	15.51M	19.11M	20.94M
Operating Cash Flow	25.82M	29.75M	23.33M	26.69M	27.25M
Investing Cash Flow	-9.77M	-11.35M	-11.17M	-11.76M	-6.36M
Financing Cash Flow	-17.88M	-19.16M	-15.26M	-14.83M	-11.67M

London Security Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3450.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LSC, the sentiment is Negative. The current price of 3450 is below the 20-day moving average (MA) of 3635.00, below the 50-day MA of 3694.96, and below the 200-day MA of 3580.35, indicating a bearish trend. The MACD of -35.27 indicates Positive momentum. The RSI at 0.18 is Positive, neither overbought nor oversold. The STOCH value of 24.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:LSC.

London Security Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNWH	79 Outperform	£668.08M	14.76	22.62%	2.29%	3.23%	2.00%
NWT	69 Neutral	£7.27M	56.21	-3.17%	―	10.37%	-57.83%
CSSG	68 Neutral	£10.88M	17.87	4.03%	2.16%	6.44%	-82.88%
LSC	67 Neutral	£422.97M	19.52	14.10%	3.54%	0.43%	-6.87%
RST	67 Neutral	£364.90M	38.85	4.01%	1.98%	6.90%	―
Sector *	66 Neutral	£2.67B	13.00	3.30%	3.25%	2.35%	-22.12%

London Security Corporate Events

London Security PLC Successfully Passes All AGM Resolutions

London Security PLC, a company involved in the security industry, held its Annual General Meeting on June 25, 2025, at its head office in Elland. During the AGM, all twelve proposed resolutions were passed, with resolutions 1 to 10 as ordinary resolutions and resolutions 11 and 12 as special resolutions. Notably, a final dividend of £0.42 per share for 2024 was declared, and the company was empowered to make certain share allotments and purchase its own shares, indicating a strategic move to enhance shareholder value.