Securitas AB Interim Report January-June 2021
STOCKHOLM, July 29, 2021 /PRNewswire/ â€"
APRIL-JUNE 2021
JANUARYâ€"JUNE 2021
Comments from the President and CEO
“A strong quarter throughout the Groupâ€
THE IMPLEMENTATION OF THE STRATEGY PAYS OFF, WHILE WE CONTINUE TO MANAGE EFFECTS FROM COVID
PROFITABLE GROWTH IN FOCUS
The Group’s organic sales growth in the second quarter was strong at 8 Âpercent (â€"4), with all business Âsegments showing 8 percent organic sales growth. Our performance in the second quarter of 2021 was solid across the Group. Commercial activity and sales momentum is picking up in all of our business segments as lock-downs and restrictions are easing.
The airport security business is Âgradually recovering and we continue to improve profitability by carefully reviewing every contract. Sales of Âsecurity solutions and electronic Âsecurity represented 22 percent (21) of total sales in the second quarter, with a real sales growth of 11 percent (0).
The operating result for the Group, Âadjusted for changes in exchange rates, increased by 50 percent in the second quarter and the operating margin was 5.6 percent (4.0). The posiÂtive effects from our strategy and the gradually improved business environment strengthened all our business segments, also supported by normal cost levels of provisioning for Âpotential bad debt compared to the high levels last year and by the cost-savings Âprogram initiated during 2020.
Total price adjustments in the Group were on par with wage cost increases in the second quarter, in spite of a Âchallenging labor situation particularly in the US, with shortage of labor and wage pressure. Support from Âgovernment grants relating mostly to employees on temporary unemployÂment continued, but on a lower level in line with the development of the Âcorona pandemic.
In the past 12 months we have sharpened our business by increased focus on contract profitability. We are reviewÂing the contract portfolio in all business segments. Further, we reduced complexÂity through the exit of 11 Âcountries, of which 10 exits now are completed.
The Group delivered a good cash flow in the second quarter, supported by a strong focus on accounts receivable.
POSITIONED FOR CONTINUED COVID UNCERTAINTIES
The corona pandemic continues to be in focus in our day-to-day operÂations as we close the second quarter of 2021. While uncertainty remains regarding the long-term consequences of the pandemic, we are coming out stronger thanks to having taken action early. Together with solid Âfinances we have strength to tackle further challenges and execute on our strategy.
COMMITTED TO TRANSFORMATION TARGETS
We are beginning to reap the benefits of our transformation program in North America initiated in 2019, with some Âpositive contribution to the Âoperating margin development in the Âbusiness segment in the Âsecond quarter. In Âaddition, the business transformation programs in Europe and Ibero-America are proÂgressing accordÂing to plan. We are confiÂdent that with these programs we will continue to change the business mix and we are fully Âcommitted to achieve the margin targets related to the programs.
Today we announced the acquisition of Protection One, a market leading solutions and electronic security company in Germany. During 2020, we acquired electronic security companies in eight focus markets. These acquisitions and their integration develop well and contribute to our ambition of doubling our security solutions and electronic Âsecurity business. We continue to Âactively explore further acquisition Âopportunities.
We have delivered a strong performÂance in the Group in the first six months of 2021. The Securitas team has continued to show great resilience in a challenging situation, and the strength of the team and the progress of our business transformation confirms the direction and ambition for the years ahead.
Magnus Ahlqvist
President and CEO
FINANCIAL INFORMATION CALENDAR
October 29, 2021, app. 1.00 p.m. (CET)
Interim Report Januaryâ€"September 2021
February 8, 2022, app. 8.00 a.m. (CET)
Full Year Report Januaryâ€"December 2021
For further information regarding Securitas IR activities, refer to
www.securitas.com/investors/Âfinancial-calendar
PRESENTATION OF THE INTERIM REPORT
Analysts and media are invited to participate in a telephone conference on July 29, 2021, at 2:30 p.m. (CET) where President and CEO Magnus Ahlqvist and CFO Bart Adam will present the report and answer questions. The telephone Âconference will also be audio cast live via Securitas’ website. To participate in the telephone conference, please dial in five minutes prior to the start of the Âconference call:
US: +1 631 913 1422
Sweden: +46 8 566 426 51
UK: +44 333 3000 804
Please use the following pin code for the telephone conference: 621 490 78#
To follow the audio cast of the telephone conference via the web, please follow the link www.securitas.com/investors/webcasts.
A recorded version of the audio cast will be available at
www.securitas.com/investors/webcasts after the Âtelephone conference .
For further information, please contact:
Micaela Sjökvist, Head of Investor Relations +46 76 116 7443
ABOUT SECURITAS
Securitas has a leading global and local market presence with operations in 47 countries. Our operations are organized in three business segments: Security Services North America, Security Services Europe and Security Services Ibero-America. We also have operations in Africa, the Middle East, Asia and Australia, which form the AMEA division. Securitas serves a wide range of clients of all sizes in a variety of industries and segments. Security solutions based on client-Âspecific needs are built through different combinations of on-site, mobile and remote guarding, electronic security, fire and safety, and corporate risk management. We adapt our security solutions based on the risks and needs of each client through increased client engagement and continuously enhanced knowledge. Securitas is listed in the Large Cap segment at Nasdaq Stockholm.
Group strategy
At Securitas, we are leading the transformation of the security industry by Âputting our clients at the heart of our business. We solve our clients’ security needs by offering qualified and engaged people, in-depth expertise and innovation within each of our protective services, the ability to combine services into Âsolutions and by using data to add further intelligence. To execute on our strategy to Âbecome the intelligent protective services partner, we are focusing on four areas: Âempowering our people, client engagement, protective services leadership and innovation, and efficiency.
Group financial targets
Securitas has three financial targets:
Securitas has also set a strategic transformation ambition â€" to double our security solutions and electronic security sales by 2023, compared with 2018.
Securitas AB (publ.)
P.O. Box 12307, SE-102 28 Stockholm, Sweden
Visiting address:
Lindhagensplan 70
Telephone: +46 10 470 30 00
Corporate registration number: 556302â€"7241
www.securitas.com
This is information that Securitas AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 1:00 p.m. (CET) on Thursday, July 29, 2021.
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