STOCKHOLM, May 6, 2019 /PRNewswire/ --
• Total sales MSEK 26 744 (23 356)
• Organic sales growth 7 percent (6)
• Operating income before amortization MSEK 1 290 (1 091)
• Operating margin 4.8 percent (4.7)
• Items affecting comparability (IAC) MSEK –20 (0),
relating to IS/IT transformation programs
• Earnings per share SEK 2.08 (1.89)
• Earnings per share, before IAC, SEK 2.12 (1.89)
• Free cash flow/net debt 0.14 (0.08)
Comments from the President and CEO
We had a strong start of the year, showing organic sales growth in the Group of 7 percent (6) in the first quarter. All business segments contributed to the improvement. Our comprehensive offering of protective services in combination with strong commercial activities allow us to grow faster than the security market in general. The operating conditions are similar to 2018 and we have good momentum. Security solutions and electronic security sales also developed well and grew by 17 percent compared with 2018, and now represent 21 percent of total Group sales.
The operating result, adjusted for changes in exchange rates, grew with 11 percent. The operating margin was 4.8 percent (4.7) in the first quarter, with a solid performance in North America, as well as in Ibero-America where Spain continued to show strong performance. The operating margin in Europe also improved and was supported by the cost savings program initiated during 2018. We have a continuous focus on managing the price and wage balance and did so also in the first quarter of 2019.
Earnings per share, adjusted for changes in exchange rates and items affecting comparability, improved by 3 percent. The earnings per share growth was negatively impacted by a higher effective tax rate in the US and by a negative net effect from IFRS 16.
Operating and free cash flow improved compared with the same quarter last year but cash management remains an area of focus across all business segments.
Driving the transformation of the security services industry
We foresee a future where scale and data availability are critical and we will drive the next big shift in the security services industry to benefit our clients and society as a whole. Earlier this year we announced two major programs to accelerate the transformation of Securitas. The objective of the first program is to radically modernize our global IS/IT platform and capability throughout the Group and we expect significant benefits in terms of efficiency and being able to launch digital products at scale. The second program drives a business transformation of our North American operations with the objective of operating in a more effective way. We are progressing according to plan with both programs and are excited about the long term impact they will have on our way of operating and on our ability to offer data-driven intelligent protective services to our clients. These programs are comprehensive multi-year transformation agendas, enabling us to build for the long-term.
In the near term, we continue to focus on enhancing our client engagement and continuously strengthening our offering and relationships with our clients. We continue to drive specialization of our protective services and to combine the protective services into tailored solutions for our clients based on their risk profile and needs.
It is now 14 months since I started as President & CEO for Securitas. Apart from extensive work with the strategy and a lot of client interaction, I continue to prioritize meeting with our people. We have good momentum as a company and this is thanks to all our fantastic people who are making a difference every day. We are now accelerating the transformation of our company and with our team of 370 000 people we are excited about the opportunities ahead.
Chief Executive Officer
PRESENTATION OF THE INTERIM REPORT
Analysts and media are invited to participate in a telephone conference on May 6, 2019 at 2:00 p.m. (CET) where President and CEO Magnus Ahlqvist and CFO Bart Adam will present the report and answer questions. The telephone conference will also be audio cast live via Securitas website. To participate in the telephone conference, please dial in five minutes prior to the start of the conference call:
US: + 1 855 269 2605
Sweden: + 46 8 519 993 55
UK: + 44 203 194 0550
To follow the audio cast of the telephone conference via the web, please follow the link
A recorded version of the audio cast will be available at www.securitas.com/investors/webcasts after the telephone conference.
FOR FURTHER INFORMATION. PLEASE CONTACT:
Micaela Sjökvist, Head of Investor Relations.
+ 46 761167443
FINANCIAL INFORMATION CALENDAR
May 6, 2019, 4.00 p.m. (CET) Annual General Meeting 2019
July 31, 2019, app. 1.00 p.m. (CET) Interim Report January–June 2019
November 6, 2019, 8.00 a.m. (CET) Interim Report January–September 2019
For further information regarding Securitas IR activities, refer to
Securitas has a leading position in the security services industry with a strong local and global market presence. We currently operate in 58 countries and employ 370 000 people. Our operations have been organized in a decentralized structure and include three business segments: Security Services North America, Security Services Europe and Security Services Ibero-America. We also have operations in Africa, the Middle East and Asia, which form the AMEA division. Securitas serves a wide range of customers of all sizes in a variety of industries and customer segments. Security solutions based on customer-specific needs are built through different combinations of on-site, mobile and remote guarding, electronic security, fire and safety, and corporate risk management. Securitas can respond to the unique and specific security challenges facing its customers, and tailor its offering according to their specific industry demands. Securitas is listed in the Large Cap segment at Nasdaq Stockholm.
Our strategy is to offer protective services that integrate all our areas of competence. Together with our customers, we develop optimal and cost-efficient solutions that are suited for the customers' needs. This brings added value to the customers and results in stronger, more long-term customer relationships and improved profitability.
Group financial targets
Securitas focuses on two financial targets. The first target relates to the statement of income: average growth of earnings per share of 10 percent annually. The second target relates to the balance sheet: free cash flow in relation to net debt of at least 0.20.
This is information that Securitas AB is obliged to make public pursuant to
the EU Market Abuse Regulation. The information was submitted for publication,
through the agency of the contact person set out above, at 1:00 p.m. (CET) on Monday, May 6, 2019.
Securitas AB (publ.)
P.O. Box 12307, SE-102 28 Stockholm, Sweden
Visiting address: Lindhagensplan 70
Telephone: +46 10 470 30 00. Fax: +46 10 470 31 22
Corporate registration number: 556302–7241
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