Securitas AB Interim Report January-March 2021
STOCKHOLM, May 5, 2021 /PRNewswire/ --
- Total sales MSEK 25 814 (28 420)
- Organic sales growth 0 percent (2)
- Operating income before amortization MSEK 1 256 (1 086)
- Operaing margin 4.9 percent (3.8)
- Items affecting comparability (IAC) MSEK –136 (–45), relating to transformation programs and the cost-savings program in the Group
- Earnings per share SEK 1.86 (1.61)
- Earnings per share, before IAC, SEK 2.11 (1.70)
- Net debt/EBITDA 2.1 (2.4)
- Cash flow from operating activities 102 percent (34)
Comments from the President and CEO
"A good start to the year while continuing the transformation journey"
A RESILIENT BUSINESS
The Group's organic sales growth in the first quarter was 0 percent (2), with all business segments showing positive organic sales growth in the month of March. Although we are seeing signs of commercial activity picking up throughout the Group, the corona pandemic continues to hamper organic sales growth.
The airport security business remains significantly negatively impacted, primarily in Security Services Europe, but we continue to improve profitability through contract reviews.
Sales reductions in the contract portfolio, primarily related to the corona pandemic, were partly offset by the increased level of corona-related extra sales, which continued from 2020 into the first quarter.
The installation business within electronic security continued to be burdened by the corona pandemic, while the strategic acquisitions of STANLEY Security in five countries and FE Moran Security Solutions in the US con-tributed positively to both sales and profitability in the quarter with the integration work progressing accor-ding to plan. Security solutions and electronic security sales was 22 percent (22) of total Group sales in the first quarter.
The operating result for the Group, adjusted for changes in exchange rates, increased by 30 percent and the operating mar-gin was 4.9 percent (3.8) with improvements in all business segments and also supported by the cost-savings program ini-tiated during 2020.
Support from government grants relating mostly to employees on temporary unemployment continued, and total price adjustments in the Group were on par with wage cost increases in the first quarter.
Profitability improvement is a key focus area and we are thus working actively with contract portfolio mana-gement across the Group.
The Group delivered a strong cash flow, albeit at lower organic sales growth, supported by a strong focus on accounts receivable.
CORONA PANDEMIC
The corona pandemic continues to be a substantial challenge in our day-to-day operations as we close the first quarter of 2021. Our priorities remain the same since January 2020 and are to protect our people, to handle our clients' changing needs in the most professional way possible, to control our costs and to carefully manage cash.
While there is still significant uncertainty regarding the long-term consequences of the pandemic, we are coming out stronger thanks to having taken action early. Together with a clear focus and solid finances we have strength and leverage to tackle further challenges.
COMMITTED TO TRANSFORMATION TARGETS
The business transformation program in Europe and Ibero-America that was announced in the beginning of the year is progressing according to plan, as do our other transformation programs. During the first quarter we also announced an update to our brand to reflect our transformation journey, and to support our position as the leading Intelligent Protective Services Partner.
We are confident that these programs will change the business mix and we are fully committed to achieve the related margin targets.
Securitas entered 2021 stronger and more focused, with a clear commitment to continue the transformation journey despite continued global uncertainty. The performance in the first quarter of 2021 confirms the direction and ambition for the years ahead.
Magnus Ahlqvist
President and CEO
FINANCIAL INFORMATION CALENDAR
May 5, 2021
Annual General Meeting 2021
July 29, 2021, app. 1.00 p.m. (CET)
Interim Report January–June 2021
October 29, 2021, app. 1.00 p.m. (CET)
Interim Report January–September 2021
For further information regarding Securitas IR activities, refer to
www.securitas.com/investors/financial-calendar
PRESENTATION OF THE INTERIM REPORT
Analysts and media are invited to participate in a telephone conference on May 5, 2021, at 3:00 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: +1 631 913 1422
Sweden: +46 8 566 426 51
UK: +44 333 3000 804
Please use the following pin code for the telephone conference: 621 490 78#
To follow the audio cast of the telephone conference via the web, please follow the link www.securitas.com/investors/webcasts.
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 76 116 7443
ABOUT SECURITAS
Securitas has a leading global and local market presence with operations in 47 countries. Our operations are organized in three business segments: Security Services North America, Security Services Europe and Security Services Ibero-America. We also have operations in Africa, the Middle East, Asia and Australia, which form the AMEA division. Securitas serves a wide range of clients of all sizes in a variety of industries and segments. Security solutions based on client-specific needs are built through different combinations of on-site, mobile and remote guarding, electronic security, fire and safety, and corporate risk management. We adapt our security solutions based on the risks and needs of each client through increased client engagement and conti-nuously enhanced knowledge. Securitas is listed in the Large Cap segment at Nasdaq Stockholm.
Group strategy
At Securitas, we are leading the transformation of the security industry by putting our clients at the heart of our business. We solve our clients' security needs by offering qualified and engaged people, in-depth expertise and innovation within each of our protective services, the ability to combine services into solutions and by using data to add further intelligence. To execute on our strategy to become the intelligent protective services partner, we are focusing on four areas: empowering our people, client engagement, protective services lea-dership and innovation, and efficiency.
Group financial targets
Securitas has three financial targets:
- An annual average increase in earnings per share of 10 percent
- Net debt to EBITDA ratio of on average 2.5
- An operating cash flow of 70 to 80 percent of operating income before amortization
Securitas has also set a strategic transformation ambition – to double our security solutions and electronic security sales by 2023, compared with 2018.
Securitas AB (publ.)
P.O. Box 12307, SE-102 28 Stockholm, Sweden
Visiting address:
Lindhagensplan 70
Telephone: +46 10 470 30 00
Corporate registration number: 556302–7241
Securitas AB
P.O. Box 12307
SE-102 28 Stockholm
Sweden
Visiting address:
Lindhagensplan 70
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 Wednesday, May 5, 2021.
This information was brought to you by Cision http://news.cision.com
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