STOCKHOLM, July 31, 2019 /PRNewswire/ -- APRIL–JUNE 2019
- Total sales MSEK 27 684 (25 466)
- Organic sales growth 5 percent (7)
- Operating income before amortization MSEK 1 377 (1 286)
- Operating margin 5.0 percent (5.0)
- Items affecting comparability (IAC) MSEK –46 (0), relating to
IS/IT transformation programs
- Earnings per share SEK 2.18
(2.28)
- Earnings per share, before IAC, SEK
2.27 (2.28)
JANUARY–JUNE 2019
- Total sales MSEK 54 428 (48 822)
- Organic sales growth 6 percent (7)
- Operating income before amortization MSEK 2 667 (2 377)
- Operating margin 4.9 percent (4.9)
- Items affecting comparability (IAC) MSEK –66 (0), relating to
IS/IT transformation programs
- Earnings per share SEK 4.25
(4.17)
- Earnings per share, before IAC, SEK
4.39 (4.17)
- Free cash flow/net debt 0.14 (0.07)
Comments from the President and CEO
Organic sales growth in the Group was 5 percent (7) in the
second quarter and 6 percent (7) in the first half year.
North America delivered solid
organic sales growth, despite strong comparatives. In Europe, organic sales growth was hampered by a
few large guarding contract losses during the second quarter in a
competitive business environment. We grew faster than the security
market in general in the first six months, despite a slowdown in a
few countries in Europe. Security
solutions and electronic security sales grew by 15 percent in the
first half year, and now represent 21 percent of total Group
sales.
The operating margin in the second quarter was unchanged at 5.0
percent (5.0). It was also unchanged in the first half year at 4.9
percent (4.9), with a strong performance in North America, and Europe and Ibero-America were flat. In
Europe we had challenging labor
conditions and were not able to fully offset wage cost increases
through price increases in two countries. Managing the price and
wage balance, and cost efficiency, will remain key focus areas
throughout the year. The operating margin in Europe was supported by the cost savings
program initiated during 2018, which developed according to plan.
The operating result, adjusted for changes in exchange rates, grew
with 7 percent.
Earnings per share, adjusted for changes in exchange rates and
items affecting comparability, was slightly behind last year,
negatively impacted by a higher effective tax rate in the US and by
a negative net effect from IFRS 16.
Operating and free cash flow improved compared with the first
six months last year. Cash management remains a key priority across
all business segments.
Driving the transformation of the security services
industry
During the second quarter, we announced three new
global units to support our strategy of specialization in each of
our protective services, adding data-driven intelligence and
delivering client centric solutions. We also announced changes to
the Securitas Group Management team.
Earlier this year we announced two comprehensive multi-year
programs, which are progressing according to plan. The first
program will modernize our global IS/IT platform and capability
across the Group and the second is a business transformation of our
North American operations.
In the near term, we maintain our focus on delivering value to
clients through our leading protective services offering. We are
also driving employee-focused activities to continuously increase
our employee engagement and to provide better conditions and
opportunities for our employees.
This way, we continue to accelerate the transformation of our
company and the security services industry.
Magnus Ahlqvist
President and Chief Executive Officer
Presentation of the Interim Report
Analysts and media are invited to participate in a telephone
conference on July 31, 2019 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 conference 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
conference call:
US: +1-855-269-2605
Sweden: +46-8-519-993-55
UK: +44-203-194-0550
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 telephone
conference.
For further information. Please contact:
Micaela Sjökvist, Head of Investor Relations.
+46-761167443
Financial Information Calendar
November 6, 2019, 8.00 a.m. (CET) Interim Report January–September
2019
February 6, 2020, app. 1.00 p.m. (CET) Full Year Report January–December
2019
For further information regarding Securitas IR activities, refer
to
www.securitas.com/investors/financial-calendar
About Securitas
Securitas has a leading position in the security services
industry with a strong local and global market presence. We
currently operate in 58 countries and employ 370 000 people. Our
operations have been organized in a decentralized structure and
include three business segments: Security Services North America,
Security Services Europe and Security Services Ibero-America. We
also have operations in Africa,
the Middle East and Asia, which form the AMEA division. Securitas
serves a wide range of customers of all sizes in a variety of
industries and customer segments. Security solutions based on
customer-specific needs are built through different combinations of
on-site, mobile and remote guarding, electronic security, fire and
safety, and corporate risk management. Securitas can respond to the
unique and specific security challenges facing its customers, and
tailor its offering according to their specific industry demands.
Securitas is listed in the Large Cap segment at Nasdaq
Stockholm.
Group strategy
Our strategy is to offer protective services that integrate all
our areas of competence. Together with our customers, we develop
optimal and cost-efficient solutions that are suited for the
customers' needs. This brings added value to the customers and
results in stronger, more long-term customer relationships and
improved profitability.
Group financial targets
Securitas focuses on two financial targets. The first target
relates to the statement of income: average growth of earnings per
share of 10 percent annually. The second target relates to the
balance sheet: free cash flow in relation to net debt of at least
0.20.
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
Wednesday, July 31, 2019.
Securitas AB (publ.)
P.O. Box 12307, SE-102 28 Stockholm,
Sweden
Visiting address: Lindhagensplan 70
Telephone: +46-10-470-30-00. Fax: +46-10-470-31-22
Corporate registration number: 556302–7241
www.securitas.com
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SOURCE Securitas