At the company’s Investor Day held in Stockholm on Thursday 5 December, Securitas presented a new ambition for its security solutions and electronic security business: to double in size to approximately £3.24 billion by 2023. The company also updated its official financial targets.
The earnings per share target of an annual increase of 10% over a cycle remains, while the free cash flow to net debt target of 0.20 is replaced by a net debt to EBITDA target of on average 2.5. A new target related to cash flow is introduced: operating cash flow of 70%-80% of operating income. The dividend policy of distributing 50 to 60% of net income remains unchanged.
Securitas is leading the transformation of the global security industry from a traditional guarding model to encompass a wide range of protective services, including on-site, mobile and remote security guarding, electronic security, fire and safety and corporate risk management. These protective services are either sold on a stand-alone basis or combined as security solutions for clients.
Securitas also presented its strategy for the coming years. The organisations wishes to become an ‘Intelligent Protective Services Partner’ by focusing on several key areas: client engagement, protective services leadership, innovation and efficiency.
“Our transformation firmly puts us in place to reinforce our leadership position in the security industry,” observed Magnus Ahlqvist, Securitas’ president and CEO. “We’re acting from a position of strength and we see new opportunities within a large, growing and changing market. We have clear targets to drive long-term value creation for clients and shareholders and we have the organisation, leaders and people in place ready to execute our plans.”