Securitas AB Full Year Report January–December 2013
STOCKHOLM--(BUSINESS WIRE)--Regulatory News:
Securitas AB (STO:SECUB)
• Total sales MSEK 16 725 (16 751)
• Organic sales growth 1 percent (0)
• Operating income before amortization MSEK 879 (741)
• Operating margin 5.3 percent (4.4)
• Earnings per share SEK 1.35 (0.19)
• Total sales MSEK 65 700 (66 458)
• Organic sales growth 1 percent (0)
• Operating income before amortization MSEK 3 329 (3 027)
• Operating margin 5.1 percent (4.6)
• Earnings per share SEK 5.07 (3.22)
• Free cash flow/net debt 0.22 (0.21)
• Proposed dividend SEK 3.00 (3.00)
COMMENTS FROM THE PRESIDENT AND CEO
Organic sales growth was 1 percent and reflected the challenging macroeconomic situation prevailing in the US and Europe, affecting especially the security markets in France, Portugal and Spain. Fragile signs of macroeconomic recovery in Europe and the US have not yet been reflected in security market growth. Latin America continued to show strong organic sales growth.
Margin improvement driven by cost savings
The quarter-on-quarter improvement trend continued, although it was hampered by the weak security market and slow organic sales growth. The operating margin improved compared with the preceding year, mainly driven by various restructuring and cost-saving actions taken in 2012. We achieved cost savings in accordance with our restructuring plan.
Sales of security solutions and technology gradually increasing
In 2012, sales of security solutions and technology represented approximately 6 percent of Group sales. We have set a target to triple this share of sales by the end of 2015. We continued to increase our investments in resources within security solutions and technology and the run rate in the fourth quarter of 2013 was 8 percent.
Changing market dynamics creating an opportunity for growth
Due to current market dynamics and a gradual increase of the use of technology in security solutions, the security market in mature markets is no longer expected to grow 1 to 2 percent faster than GDP as it has historically, but rather the same pace as GDP. In the future, this trend could be improved through increased outsourcing of currently insourced traditional guarding activities and by allowing the private security industry to take over services performed by public authorities and governments.
The degree to which technology is being integrated into security solutions varies from country to country in Securitas’ markets. However, as the pace accelerates, we are confident that we will be able to gain markets shares by having a stronger and more cost-efficient offering than many traditional guarding companies. We have already seen proof of this in markets where we are well equipped to offer security solutions, where we will be able to grow faster than the security market average.
President and Chief Executive Officer
PRESENTATION OF THE FULL YEAR REPORT
Analysts and media are invited to participate in a telephone conference on February 10, 2014 at 09:30 a.m. (CET) where Securitas CEO Alf Göransson will present the report and answer questions. The telephone conference will also be audio cast live via Securitas web. No information meeting will take place at Securitas headquarters at Lindhagensplan in Stockholm. To participate in the telephone conference, please dial in five minutes prior to the start of the conference call:
The United States: + 1 855 753 2230
Sweden: + 46 (0) 8 505 564 74
United Kingdom: + 44 (0) 203 364 5374
To follow the audio cast of the telephone conference via the web, please follow the link
www.securitas.com/webcasts. A recorded version of the audio cast will be available
at www.securitas.com/webcasts after the telephone conference.
Securitas is a global knowledge leader in security. From a broad range of services of specialized guarding, technology solutions and consulting and investigations, we customize offerings that are suited to the individual customer’s needs, in order to deliver the most effective security solutions. Everywhere from small stores to airports, our 300,000 employees are making a difference
Securitas AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 08.00 a.m. (CET) on Monday, February 10, 2014.
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