STOCKHOLM, February 8, 2022 /PRNewswire/ —
- Total sales MSEK 28,049 (26,477)
- Organic sales growth of 4% (1)
- Operating profit before amortization MSEK 1,646 (1,404)
- Operating margin 5.9% (5.3)
- Items affecting comparability (IAC) MSEK –356 (–422), mainly related to previously announced transformation programs and cost reduction program in the Group
- Earnings per share SEK2.05 (1.45)
- Earnings per share, before IAC, SEK2.85 (2.38)
- Cash flow from operating activities 131% (109)
- Total sales MSEK 107,700 (107,954)
- Organic sales growth 4% (0)
- Operating profit before depreciation MSEK 5,978 (4,892)
- Operating margin 5.6% (4.5)
- Items affecting comparability (IAC) MSEK –871 (–640), mainly related to previously announced transformation programs and cost reduction program in the Group
- Earnings per share SEK8.59 (6.63)
- Earnings per share, before IAC, SEK10.41 (8.02)
- Net debt/EBITDA 1.9 (2.1)
- Cash flow from operating activities 93% (147)
- Dividend proposal for 2021 of SEK4.40 (4.00) per share
Comments from the President and CEO
“Strong margin improvement and preparation for significant future improvement”
- Record operating profit and highest operating margin in over a decade. Our strategy, investments and actions are beginning to bear fruit and are reflected in growing profitability across all business segments
- Strong cash flow generation leading to reduced indebtedness and a strong financial position at the end of the year, preparing us for the closing of the Stanley Security acquisition
- Finalization of two transformation programs and the savings program. Achieved cost savings targets in key areas and good realization of benefits in North America towards the end of the year. A stronger foundation to improve customer value and drive operating margin improvement
- Announcing the transformative acquisition of Stanley Security – positioning Securitas as a leading intelligent security solutions partner with over 50% of profits generated from high-margin electronic security and solutions sales going forward
We ended the year with organic sales growth of 4% in the quarter and full year. Business environment conditions gradually improved during the year, with good commercial activity in all business segments while growth was dampened in North America due to the reduction in additional corona-related sales and previously announced contract losses.
Security and electronic security solutions sales showed real sales growth of 8% (5) in 2021, representing 22% of Group sales. We saw improved growth in the fourth quarter despite the challenges of component shortages.
The Group’s operating profit, adjusted for exchange rate fluctuations, increased by 15% (4) in the fourth quarter and by 28% (–10) for the year as a whole. Operating margin improved to 5.9% (5.3) in the quarter and 5.6% (4.5) for 2021. Our focus on delivering the best combined customer value proposition to a strong focus on profitability through active portfolio management has strengthened all business segments. The improvement was also supported by the savings program launched in 2020 and lower provisioning levels than in 2020.
With the continued return to business as usual related to the pandemic, government subsidies and support were significantly reduced in the fourth quarter. The equilibrium of prices and wages was successfully maintained throughout the year. As we approach 2022, we are well positioned to maintain this balance.
The Group generated strong operating cash flow, corresponding to 93% of operating income in 2021. The net debt to EBITDA ratio was 1.9 (2.1).
TRANSFORMATIVE ACQUISITION FOR TECHNOLOGY LEADERSHIP
At the end of 2021, we took an important step in our strategy of growing value through technology by announcing the agreement to acquire Stanley Security. This is a transformative acquisition that we believe will result in significant additional business growth and substantial operating margin improvement over time.
The future of security will be built around a combination of global presence, connected technology and intelligent use of data, and together with Stanley, we will be uniquely positioned to win in this environment.
AN EXCITING JOURNEY AHEAD
As 2022 approaches, we are preparing to complete the acquisition of Stanley Security. Integration and value creation planning has begun and is on track. We are continuing to execute our transformation programs by Europe and Ibero-America, which are developing according to plan. The transformation program North America was successfully finalized in 2021 and we see positive impacts on our operations and operating margin at the end of 2021 with new opportunities in 2022.
When Stanley is integrated and the transformation programs are fully implemented, we will have built a new Securitas – a modern, digitized and innovative security solutions partner for our customers with a structurally higher margin profile.
None of this would be possible without a strong team. I would like to take this opportunity to express my deepest gratitude to the Securitas team for their resilience and phenomenal work in 2021.
President and CEO
PRESENTATION OF THE ANNUAL REPORT
Analysts and the media are invited to participate in a conference call on February 8, 2022 at 9:30 a.m. (CET) where President and CEO Magnus Ahlqvist and financial director Andreas Lindback will present the report and answer questions. The conference call will also be broadcast live via the Securitas website. To join the conference call, please dial five minutes before the start of the conference call:
USA: +1 631 913 1422
Sweden: +46 8 566 426 51
UK: +44 333 3000 804
Please use the following PIN code for the conference call: 621 490 78#
To follow the audio webcast of the conference call, 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 conference call.
For more information, please contact:
Micaela Sjökvist, Head of Investor Relations +46 76 116 7443
Securitas has a leading global and local market presence with operations in 46 countries. Our activities are organized into three business segments: Security Services North America, Security Services Europe and Security Services Ibero-America. We also have operations in Africathe Middle East, Asia and Australia, which form the AMEA division. Securitas serves a wide range of customers of all sizes in a variety of industries and segments. Security solutions based on specific customer needs are built through different combinations of onsite, mobile and remote monitoring, electronic security, fire safety and enterprise risk management. We tailor our security solutions to each client’s risks and needs through increased client engagement and continuously improving insights. Securitas is listed on the Large Cap segment of Nasdaq Stockholm.
At Securitas, we are leading the transformation of the security industry by putting our customers at the heart of our business. We meet the security needs of our customers by providing skilled and committed people, deep expertise and innovation within each of our protection services, the ability to combine services into solutions, and using data to add intelligence additional. To execute on our strategy to become the partner in intelligent protection services, we focus on four areas: empowering our people, engaging customers, leadership and innovation in protection services, and efficiency.
Group financial objectives
Securitas has three financial objectives:
An average annual increase in earnings per share of 10%
Net debt to EBITDA ratio of 2.5 on average
Operating cash flow of 70-80% of operating profit before amortization
Securitas has also set itself a strategic transformation ambition: to double our sales of security and electronic security solutions by 2023, compared to 2018.
Securitas AB (ed.)
Box 12307, SE-102 28 Stockholm, Sweden
Telephone: +46 10 470 30 00
Company registration number: 556302-7241
This is information that Securitas AB is required to make public under the EU Market Abuse Regulation. The information has been submitted for publication, through the contact person listed above, to 8:00 a.m. (CET) on TuesdayFebruary 8, 2022.
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