London Security (LSC) AI Stock Analysis

• Market Cap: £349.41M
• Dividend Yield: 3.53%
• Average Volume (3M): 38.00
• Price to Earnings (P/E): 16.8
• Beta (1Y): -0.10
• Revenue Growth: 2.25%
• EPS Growth: -9.42%
• Country: UK
• Employees: 1,635
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 0.71
• Shares Outstanding: 12,259,877
• 10 Day Avg. Volume: 52
• 30 Day Avg. Volume: 38
• PEG Ratio: -2.81
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 1.89
• P/FCF Ratio: 27.75
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: 3,064.00p ▼(-11.19% Downside)

London Security's strong financial performance and attractive dividend yield are offset by bearish technical indicators, resulting in a moderate overall stock score. The company's robust financial health provides a solid foundation, but current market momentum suggests caution.

Positive Factors

Revenue Growth

The significant revenue growth over the past five years indicates strong market demand and effective business strategies, enhancing long-term sustainability.

Balance Sheet Health

A solid balance sheet with low leverage enhances financial flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Profitability Margins

High profitability margins reflect effective cost management and pricing power, supporting sustained earnings and competitive positioning.

Negative Factors

EBIT Margin Decline

A declining EBIT margin suggests increasing operational costs, which could pressure future profitability if not managed effectively.

Free Cash Flow Volatility

Volatility in free cash flow can limit the company's ability to fund new projects or return capital to shareholders, impacting long-term financial planning.

EPS Growth Decline

A decline in EPS growth may indicate challenges in maintaining profitability, potentially affecting investor confidence and long-term valuation.

London Security Business Overview & Revenue Model

Company Description

London Security (LSC) is a leading provider of security solutions based in London, specializing in a wide range of services including manned guarding, mobile patrols, event security, and security technology systems. The company serves various sectors such as corporate, residential, retail, and public events, ensuring safety and protection for clients through tailored security strategies and trained personnel. LSC prides itself on its commitment to high standards of service and customer satisfaction, leveraging advanced technology to enhance security measures.

How the Company Makes Money

London Security generates revenue through multiple key streams. The primary source is the provision of manned guarding services, where clients pay for on-site security personnel to safeguard their premises. Mobile patrol services also contribute significantly, as businesses contract LSC to conduct regular patrols of their properties. Additionally, LSC earns income from event security management, charging clients for security personnel and planning services during events. The company further enhances its revenue through the sale and installation of security technology systems, such as surveillance cameras and alarm systems. Strategic partnerships with technology providers and local businesses bolster its service offerings and market reach, contributing to overall earnings. Finally, LSC may also engage in consulting services related to security risk assessments, adding another layer to its revenue model.

London Security Financial Statement Overview

Summary

London Security demonstrates strong financial health with robust revenue growth and stable profitability margins. The balance sheet is solid with low leverage risk, and cash flow management is generally effective despite recent 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	226.71M	220.65M	219.71M	188.90M	166.63M	152.72M
Gross Profit	165.77M	161.90M	160.72M	129.05M	114.44M	106.49M
EBITDA	37.41M	41.71M	42.88M	37.28M	36.29M	33.61M
Net Income	20.76M	21.66M	23.26M	20.22M	19.91M	17.85M
Balance Sheet
Total Assets	220.26M	205.13M	202.14M	195.88M	174.64M	169.43M
Cash, Cash Equivalents and Short-Term Investments	42.74M	29.56M	32.74M	33.96M	35.68M	37.46M
Total Debt	8.34M	7.57M	7.15M	7.91M	8.11M	8.99M
Total Liabilities	53.59M	50.16M	49.90M	50.03M	42.90M	43.31M
Stockholders Equity	166.67M	154.97M	152.24M	145.86M	131.63M	125.75M
Cash Flow
Free Cash Flow	22.96M	15.02M	19.05M	15.51M	19.11M	20.94M
Operating Cash Flow	30.09M	25.82M	29.75M	23.33M	26.69M	27.25M
Investing Cash Flow	-9.37M	-9.77M	-11.35M	-11.17M	-11.76M	-6.36M
Financing Cash Flow	-17.98M	-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: Negative
• RSI: Positive
• STOCH: Positive

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 above the 20-day moving average (MA) of 2860.00, above the 50-day MA of 3185.94, and below the 200-day MA of 3475.42, indicating a bearish trend. The MACD of -110.44 indicates Negative momentum. The RSI at 4.35 is Positive, neither overbought nor oversold. The STOCH value of 2.38 is Positive, 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	73 Outperform	£739.32M	16.33	19.85%	2.15%	7.13%	17.31%
CSSG	70 Neutral	£10.81M	13.90	5.08%	3.10%	10.26%	45.18%
NWT	69 Neutral	£10.59M	15.93	7.90%	―	3.41%	393.71%
RST	66 Neutral	£338.89M	36.08	4.01%	2.21%	6.90%	145.00%
LSC	65 Neutral	£349.41M	16.83	12.72%	3.53%	2.25%	-9.42%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

London Security Corporate Events

London Security Declares Interim Dividend for 2025

London Security plc has declared an interim dividend of 55 pence per ordinary share, amounting to a total payout of £6,742,932 for the year ending December 31, 2025. This decision reflects the company’s commitment to delivering shareholder value and may positively influence investor sentiment as the dividend will be distributed on December 5, 2025, to shareholders registered by November 14, 2025.

London Security PLC Reports Revenue Growth Amidst Operational Challenges

London Security PLC reported a 5.4% increase in revenue to £116.9 million for the first half of 2025, despite a decrease in operating profit due to exchange rate fluctuations, engineer shortages, and inflationary pressures. The company has addressed the engineer shortage through recruitment and training, and continues to pursue acquisitions in Europe to strengthen its market position. With strong cash reserves and a healthy balance sheet, London Security is well-positioned to manage low growth environments while maintaining demand for its essential fire safety products and services.