Securitas‘ Interim Report for the period January-September 2011 suggests that the loss of some important contracts during the first half of the year has hampered growth for Security Services Europe.
“The operating margin remained stable for Security Services North America, Security Services Ibero-America and in Mobile and -Monitoring,” stated Alf Goransson, the security giant’s president and CEO, “and the real change of the operating income in these segments compared to previous year was positive and developed well.”
However, he went on to state: “In Security Services Europe, the loss of a few major contracts and difficulties in managing the balance between wage increases and price increases have resulted in a non–satisfactory development. A variety of actions are being taken to restore the performance in Europe, and among others further reductions in terms of indirect costs are being made in a number of countries across Europe.”
According to Goransson, real sales growth continued to be strong in the third quarter (amounting to 13%). In the first nine months of the year real sales growth stands at 12%.
“The organic sales growth reached 4% in the quarter,” he explained while speaking to an invited audience of journalists and business analysts gathered at Securitas’ headquarters at Lindhagensplan, Stockholm.
“We’re also gaining market shares organically in both North and South America.”
Going forward, the company’s strategy of focusing on (and specialising in) security services and improving its ability to advise and optimise its customers’ security solutions is progressing.
“After the attempt to acquire Niscayah in a public bid process,” continued the CEO, “we’re instead growing our system integration and technology resources organically and by short-listing potential acquisition targets. The first important acquisition along this route was made in Turkey last September.”
Securitas AB Interim Report January-September 2011: key figures
July-September 2011
- Total sales: MSEK 16,628 (15,327)
- Organic sales growth: 4% (2)
- Operating margin: 5.7% (6.5)
- Earnings per share: SEK 1.42 (1.57
January-September 2011
- Total sales: MSEK 47,031 (45,622)
- Organic sales growth: 4% (0)
- Operating margin: 5.1% (5.8)
- Earnings per share: SEK 3.44 (4.10)
- Free cash flow/net debt: 0.11 (0.20)
Securitas acquires technical solutions company in Argentina
Securitas has acquired the technical security solutions company Fuego Red in Argentina. The enterprise value is estimated to be MSEK 34 (MARS 22.5).
Fuego Red boasts annual sales of approximately MSEK 36 (MARS 24) and is staffed by 65 employees. The company is focused on fire detection systems, but also operates technical maintenance services for both video solutions and access control systems.
The acquisition of Fuego Red will strengthen Securitas’ market-leading position in Argentina. It also makes it possible to “develop and integrate technical solutions and electronic security products”to a higher degree for the company’s customer base.
The acquisition was consolidated in Securitas as of 1 November 2011.
Securitas has also just acquired the French security services companies Europinter and ECSAS Gardiennage. The enterprise value here is estimated at MSEK 17 (MEUR 1.8).
Europinter & ECSAS Gardiennage has annual sales of approximately MSEK 92 (MEUR 10) generated by 125 employees. The companies are specialists in the field of mobile security services.
Securitas is already a leading player in mobile security services solutions for small and medium-sized businesses in France. With these acquisitions, the company will now continue to expand in this field.
These acquisitions were also consolidated in Securitas as of 1 November 2011.