About Us – Full company history

Fire Equipment Trading

History of London Security plc, the Company
London Security Plc was incorporated in 1897 but operated as an engineering company. In the 1980’s, the activity was amended to that of a property investment company.

In common with many property investment companies, London suffered from falling asset values, high gearing and high interest rates during the recession of the early 1990’s. London’s financial position was such that in October 1992 it entered into a creditors’ voluntary arrangement, which was accompanied by an issue of Ordinary Shares to provide working capital. An orderly disposal of most of the properties and other assets held by London took place and the proceeds of sale were used to repay in part its secured lenders. The creditors’ voluntary arrangement expired in October 1994.

In November 1994 the Company announced that it would run out of funds by January 1995 unless action was taken. To address this, London acquired Suitsort Limited from Nu-Swift in exchange for the issue of Ordinary Shares and undertook a capital reorganisation to eliminate the deficit on the profit and loss account and to enable the Company to pay dividends. As a result of this transaction, Mr. Murray increased his indirect shareholding in London from 29.15 per cent. To 74.99 per cent.

Suitsort Limited, through its subsidiaries, owned a portfolio of six properties valued in November 1994 at £17.6 million and had property related debt of £11.2 million. Its acquisition by London increased the net assets of London from £14,000 to £6.5 million on a pro forma basis. The Group has continued to own these properties until December 1999.

In December 1999 the Group disposed of its property interest and acquired 100 per cent of the share capital of the Ansul Group and Nu-Swift Group, market leaders in Europe’s fire security industry.