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Stable-protocol (SP) output consensus analysis and design problems for high-order linear time-invariant swarm systems with time-varying delays are investigated. First, a dynamic output feedback consensus protocol is proposed on the basis of the observable decomposition, and a necessary and sufficient condition for SP output consensus is given, which transforms the SP output consensus problem into asymptotical stability problems of multiple lower-dimensional subsystems. Then, in terms of linear matrix inequalities (LMIs), a sufficient condition for SP output consensualisation is presented, which can guarantee the scalability of swarm systems since it includes only five LMI constrains independent of the number of agents. Furthermore, an explicit expression of the output consensus function, which is independent of the time-varying delay, is shown and the impacts of initial states of agents and consensus protocols on the output consensus function are determined, respectively. Finally, a numerical example is given to demonstrate theoretical results.