Organic sales growth (at 3%) has remained “good” at Securitas in the first half of the year on top of an “extraordinarily high” growth in 2016. In company financials issued in Stockholm this morning, Securitas reports total sales (MSEK) at 45 522 (42 131), operating income before amortisation (again, in MSEK) standing at 2 183 (2 083) and an operating margin of 4.8% (4.9). Earnings per share (SEK) are 3.60 (3.32) and free cash flow/net debt is reported at 0.13 (0.13).
“Market dynamics in the US remain favourable,” asserted Alf Göransson, president and CEO of the business, “and our ability to deliver complete electronic security solutions is giving us a strong market momentum in the US market. Our Ibero-American business segment also had strong organic sales growth.”
In Spain and Portugal, the company’s consistent investments in security solutions and electronic security since 2011 have enabled successful growth on a faster scale than across the security market in general.
“In Europe,” continued Göransson, “total sales were higher than last year in spite of a few previously communicated large contract terminations and a reduction of the extra sales compared with the unusually high levels in 2016. We expect a gradual recovery of the portfolio business towards the end of 2017.”
The operating margin was slightly below last year. It improved in North America, while Europe experienced some operational overcapacity and negative leverage in a few countries. Earnings per share improved by 8% with a real change of 4% in the first six months of this year.
“We continue to deliver on our strategy,” said Göransson. “Security solutions and electronic security continue to grow at a high pace and are becoming a larger part of total Group sales.”
In conclusion, Göransson explained: “As an important part of our Vision 2020 strategy, we’re gradually increasing investments in digitising our customers’ historical and real-time data in order to produce more predictive security. In combination with our security solutions and electronic security strategy, intelligent security will create further customer value and enhanced security, while also strengthening our leadership in the global security market.”