Securitas publishes Interim Report covering period from January-September 2019

Global security solutions giant Securitas has just issued its interim financial report covering the period from January through until September this year. The document highlights a 5% organic sales growth during that time on total sales of MSEK 82 642, with the company’s operating margin for the period standing at 5.1%.

From July until September, total sales were MSEK 28 214 with an organic sales growth of 4%. Operating margin for the period was 5.6%.

Magnus Ahlqvist, the company’s president and CEO, commented: “The good organic sales growth was supported by North America and Ibero-America, but hampered by the previously communicated contract losses in Europe. We have the strongest offering of protective services and we grew faster than the security market in general during the first nine months of this year.”

Ahlqvist continued: “In terms of the macroeconomic environment, we saw a slowdown in some key markets during the second half of 2019. Security solutions and electronic security sales grew by 11% in the first nine months, and now represent 21% of total Group sales.”

In addition, the CEO stated: “The operating margin in the third quarter was unchanged at 5.6%. It was also unchanged in the first nine months at 5.1%, with a good performance in North America and Ibero-America. Labour markets are increasingly challenging in all of our geographies, and managing the price and wage balance will remain a key focus this year as well as going into 2020. The cost savings programme in Europe, initiated back in 2018, has developed according to plan and supported the operating margin.”

Operating and free cash flow has improved compared with the first nine months of 2018. According to Ahlqvist, the strong focus on cash management has paid off and remains “a key priority” across all business segments.

Driving transformation

Magnus Ahlqvist

Magnus Ahlqvist

“We continue to drive the implementation of the two transformation programmes that will bring increased efficiency, modernisation and innovation,” urged Ahlqvist. “While the positive impact from these programmes is still a few years out, we’re progressing according to plan with their execution.”

Offering solutions to its clients is a core part of the Securitas strategy. The business continues to build a stronger capability within technology to enable further growth. The overriding ambition in the coming years is to increase security solutions and electronic security sales s part of total Group sales.

“During a time when we see slowing growth in some economies yet upward wage pressure,” added Ahlqvist, “being able to offer a solution as an alternative to our clients is as important as ever in order to enhance value to our clients and to manage overall costs.”

The business is hosting an Investor Day in Stockholm on Thursday 5 December with a view towards sharing more detail on Group strategy.

About the Author
Brian Sims BA (Hons) Hon FSyI, Editor, Risk UK (Pro-Activ Publications) Beginning his career in professional journalism at The Builder Group in March 1992, Brian was appointed Editor of Security Management Today in November 2000 having spent eight years in engineering journalism across two titles: Building Services Journal and Light & Lighting. In 2005, Brian received the BSIA Chairman’s Award for Promoting The Security Industry and, a year later, the Skills for Security Special Award for an Outstanding Contribution to the Security Business Sector. In 2008, Brian was The Security Institute’s nomination for the Association of Security Consultants’ highly prestigious Imbert Prize and, in 2013, was a nominated finalist for the Institute's George van Schalkwyk Award. An Honorary Fellow of The Security Institute, Brian serves as a Judge for the BSIA’s Security Personnel of the Year Awards and the Securitas Good Customer Award. Between 2008 and 2014, Brian pioneered the use of digital media across the security sector, including webinars and Audio Shows. Brian’s actively involved in 50-plus security groups on LinkedIn and hosts the popular Risk UK Twitter site. Brian is a frequent speaker on the conference circuit. He has organised and chaired conference programmes for both IFSEC International and ASIS International and has been published in the national media. Brian was appointed Editor of Risk UK at Pro-Activ Publications in July 2014 and as Editor of The Paper (Pro-Activ Publications' dedicated business newspaper for security professionals) in September 2015. Brian was appointed Editor of Risk Xtra at Pro-Activ Publications in May 2018.

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