London Security (LSC) AI Stock Analysis

London Security

(LSE:LSC)

Select Model

Rating:71Outperform

Price Target:GBX 4,033.00▲(9.00% Upside)

Action:reiterated

Date:08/11/26

The score is driven primarily by strong financial performance, especially the fortress-like balance sheet and improved cash generation. Technicals are supportive but partially offset by an extreme overbought RSI, while valuation is fair but not especially attractive.

Positive Factors

Conservative Balance SheetExtremely low leverage and a growing equity base give the company durable financial flexibility. This balance-sheet conservatism supports resilience through downturns, enables funding of organic investment or opportunistic M&A, and lowers refinancing and interest-rate risk over months.

Negative Factors

Margin CompressionNet margin contraction versus earlier years signals persistent cost or mix pressures that are eroding unit economics. Continued margin compression would restrain earnings leverage from top-line gains, limit cash flow growth and reduce flexibility for sustained capital returns or reinvestment.

London Security (LSC) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: GBP 447.45M
Dividend Yield: 2.66%
Average Volume (3M): 42
Price to Earnings (P/E): 18.0
Beta (1Y): -0.20
Revenue Growth: 12.45%
EPS Growth: 20.16%
Country: UK
Employees: 1,700
Sector: Industrials
Sector Strength: 63
Industry: Security & Protection Services

London Security Business Overview & Revenue Model

Company Description

London Security plc operates as an investment holding company focused on the fire protection industry. The firm is engaged in the manufacturing, selling, renting, and servicing of fire safety apparatus across a significant portion of Europe, includin...

How the Company Makes Money

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London Security Financial Statement Overview

Summary

Strong overall fundamentals support the score: a very low debt-to-equity ratio, solid revenue growth, and improving free cash flow. Profitability is healthy and stable, but margin compression and some historical cash flow volatility keep the score below the highest tier.

Income Statement

72Positive

Balance Sheet

81Very Positive

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	254.94M	244.30M	220.65M	219.71M	188.90M	166.63M
Gross Profit	187.77M	179.01M	161.90M	160.72M	129.05M	114.44M
EBITDA	46.37M	44.56M	41.71M	42.88M	37.28M	36.29M
Net Income	24.95M	23.78M	21.66M	23.26M	20.22M	19.91M
Balance Sheet
Total Assets	238.53M	225.45M	205.13M	202.14M	195.88M	174.64M
Cash, Cash Equivalents and Short-Term Investments	54.82M	45.87M	29.56M	32.74M	33.96M	35.68M
Total Debt	7.82M	8.23M	7.57M	7.15M	7.91M	8.11M
Total Liabilities	58.12M	53.84M	50.16M	49.90M	50.03M	42.90M
Stockholders Equity	180.42M	171.61M	154.97M	152.24M	145.86M	131.63M
Cash Flow
Free Cash Flow	29.80M	31.59M	15.02M	19.05M	15.51M	19.11M
Operating Cash Flow	38.01M	39.21M	25.82M	29.75M	23.33M	26.69M
Investing Cash Flow	-11.40M	-9.77M	-9.77M	-11.35M	-11.17M	-11.76M
Financing Cash Flow	-14.93M	-14.82M	-17.88M	-19.16M	-15.26M	-14.83M

London Security Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

GB:LSC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GB:LSC	71Outperform	GBP 447.45M	17.98	14.17%	2.66%	12.45%	20.16%
GB:SNX	67Neutral	GBP 31.86M	48.84	1.64%	2.63%	-15.64%	-83.92%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GB:CSSG	58Neutral	GBP 10.99M	16.49	4.23%	3.02%	10.89%	9.05%
GB:PEG	55Neutral	GBP 5.16M	-27.42	-3.14%	―	-4.46%	63.10%
GB:NWT	49Neutral	GBP 9.47M	7.06	6.49%	―	-5.08%	-12.18%

* Industrials Sector Average

Performance Comparison

GB:LSC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:LSC	London Security	3650.00	203.19	5.89%
GB:CSSG	Croma Security Solutions	79.50	-1.48	-1.83%
GB:NWT	Newmark Security	100.50	-17.00	-14.47%
GB:PEG	Petards Group plc	8.50	1.00	13.33%
GB:SNX	Synectics plc	190.00	-80.58	-29.78%

London Security Corporate Events

Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresShareholder Meetings

London Security gets near-unanimous shareholder backing at AGM

Positive

Jun 25, 2026

Shareholders in London Security plc strongly endorsed the board and its strategy at the company’s 25 June AGM, where all 12 resolutions were passed with 98.98% of votes cast in favour and no votes against. The meeting approved the receipt of th...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 10, 2026

London Security AI Stock Analysis