Organic sales growth was “exceptionally strong” for Securitas in Q2 2016, driven by “good portfolio development” and extra sales continuing at “record high levels”.
Alf Göransson, the company’s president and CEO, commented: “The business is well positioned to manage higher levels of security needs as well as the increasing concerns around possible operational disruptions at our customers’ sites by optimally combining on-site, mobile and remote security guarding with electronic security, fire and safety solutions and corporate risk management. As a direct result of this strategy, we’re presently growing faster than the security markets in the US and Europe as well as in many of the Ibero-American countries.”
Earnings per share at Securitas improved by 19% in the second quarter and by 16% across the first half of 2016 (adjusted for changes in exchange rates). The operating result has improved by 18% compared to the first half of last year, again adjusted for changes in exchange rates, while operating margin has increased to 5.1% (4.7) in the quarter and to 4.9% (4.7) for the first six months of 2016.
Sales of security solutions and electronic security are said to be “strong” in the first six months of the year and in line with expectations. “We believe that we can continue to increase our sales of security solutions and electronic security at a high pace in the coming years, and make this a substantial part of the Group’s total sales,” enthused Göransson.
“The completed acquisition of Diebold’s North American electronic security business on 1 February also makes an important contribution in terms of accelerating our transformation, and we’ve also recently been able to agree on two medium-sized electronic security acquisitions in Europe.”
As disclosed on 12 April, Securitas agreed to acquire Draht+Schutz Unternehmengruppe, a full-service provider in the electronic security industry in Germany. The company has 160 employees and generated 2015 annual sales of approximately MSEK 175 (MEUR 19).
Only last month, Securitas agreed to acquire the electronic security company Infratek Security Solutions AS in Norway. The organisation boasts annual sales of approximately MSEK 200 (MEUR 21).
Infratek Security Solutions delivers technical security solutions to corporations in both Norway and Sweden. Among its deliverables are electronic solutions for retail businesses, access control, alarm systems and camera surveillance. The company employees 102 members of staff.
This acquisition is subject to regulatory approval, following which the acquired company will cease to use ‘Infratek’ as part of its company name. The acquisition is expected to close during the third quarter of 2016, from which point Infratek Security Solutions will be consolidated in Securitas
Q2 2016 financials in full
*Total sales (MSEK): 21 517 (19 875)
*Organic sales growth: 8% (4)
*Operating income before amortisation (MSEK): 1 087 (926)
*Operating margin: 5.1% (4.7)
*Earnings per share (SEK): 1.73 (1.51)
*Total sales (MSEK): 42 131 (39 361)
*Organic sales growth: 8% (5)
*Operating income before amortisation (MSEK): 2 083 (1 835)
*Operating margin: 4.9% (4.7)
*Earnings per share (SEK): 3.32 (2.96)
*Free cash flow/net debt: 0.13 (0.19)
BSIA Chairman’s Award for Securitas UK’s head of Learning and Development
Emily O’Mahony, head of Learning and Development at Securitas UK, has won one of the coveted BSIA Chairman’s Awards for 2016.
Held annually, these awards recognise individuals and organisations who have made a special contribution to training, community, export, the industry or standards. They’re presented at a prestigious ceremony during the BSIA’s Annual Luncheon, held this year at the London Hilton Hotel, Park Lane on Tuesday 12 July.
Since joining Securitas back in November 2014, O’Mahony has led the business’ revitalised focus on the training and development of its 13,000 officers, in turn leading to measurable improvements in skills and output. The strategy has enabled all front line staff to benefit from a highly effective training journey, in which the company’s all-new flagship state-of-the-art Training and Development Academy plays a vital role.
Opened last year, the Academy is located within the company’s new Operations Centre in Milton Keynes and staffed by a team of experts delivering a curriculum that’s wholly focused on being relevant, contemporary and motivational.
O’Mahony has been instrumental in conceiving and developing this vision and building a learning and development culture across the group. The introduction of a competency-based learning approach has resulted in an emphasis on performance development rather than performance management, with each member of the workforce understanding their respective contribution to the overall success of the business.
Importantly, O’Mahony has also introduced detailed training programmes for the company’s managers in order to ensure the effective development of their vital strategic, commercial and leadership skills.
Other achievements for O’Mahony include the appointment of Securitas UK as a City & Guilds Accredited Training Centre and the creation of a City & Guilds-accredited Protective Services Officer training programme. Both demonstrate the company’s commitment to the improvement and recognition of security personnel in the UK.
London Fire Brigade ‘Safe in the City’ event
‘Safe in the City’, which is supported by Securitas, will be an outdoor celebration of everything that the London Fire Brigade does. The event, which takes place on Saturday 20 August, promises to be the biggest family fun day in the Brigade’s 150-year history. No tickets are needed as this is a free event.
The venue is the Geraldine Mary Harmsworth Park in the Imperial War Museum Gardens, Kennington Road, London SE1 6HZ, with the day running between 11.00 am and 5.00 pm.
London Fire Brigade staff will be on hand to give specialist demonstrations on areas such as extrication and trauma, line rescues, 999 call handling and ‘Urban Search and Rescue’. There’ll also be interactive events taking place in the Community Safety Zone.
Attendees can meet the Brigade’s Museum Team and learn all about how the London Fire Brigade has adapted and progressed to become the modern Fire and Rescue Service that we know today. See how far fire engines have progressed from steam-powered and vintage appliances to the Brigade’s brand new fire engine model for 2016.
*Learn more about ‘Safe in the City’
*Join the conversation on Twitter: #LFB150