October-
- Total sales MSEK 28 049 (26 477)
- Organic sales growth 4 percent (1)
- Operating income before amortization MSEK 1 646 (1 404)
- Operating margin 5.9 percent (5.3)
- Items affecting comparability (IAC) MSEK -356 (-422), mainly relating to the previously announced transformation programs and the cost-savings program in the Group
-
Earnings per share
SEK 2.05 (1.45) -
Earnings per share, before IAC,
SEK 2.85 (2.38) - Cash flow from operating activities 131 percent (109)
January-
- Total sales MSEK 107 700 (107 954)
- Organic sales growth 4 percent (0)
- Operating income before amortization MSEK 5 978 (4 892)
- Operating margin 5.6 percent (4.5)
- Items affecting comparability (IAC) MSEK -871 (-640), mainly relating to the previously announced transformation programs and the cost-savings program in the Group
-
Earnings per share
SEK 8.59 (6.63) -
Earnings per share, before IAC,
SEK 10.41 (8.02) - Net debt/EBITDA 1.9 (2.1)
- Cash flow from operating activities 93 percent (147)
-
Proposed dividend for 2021 of
SEK 4.40 (4.00) per share
Comments from the President and CEO
"Strong margin improvement and preparing ourselves for significant future enhancement"
- Record level operating result and highest operating margin in more than a decade. Our strategy, investments and actions are starting to pay off and resulting in increasing profitability in all business segments
- Strong cash flow generation leading to reduced leverage and a solid financial position at year end, preparing ourselves for the Stanley Security acquisition closing
-
Finalized two transformation programs and the cost savings program. Cost savings targets achieved in key areas and good benefit realization in
North America towards the end of the year. Stronger foundation to enhance client value and drive operating margin improvement - Transformative acquisition of Stanley Security announced - positioning Securitas as a leading intelligent security solutions partner with over 50 percent of profit generated from high-margin electronic security and solutions sales going forward
We finished the year with 4 percent organic sales growth in the quarter and full year. The conditions in the business environment improved gradually during the year, with good commercial activity across all business segments while growth was hampered in
Sales of security solutions and electronic security showed real sales growth of 8 percent (5) in 2021, representing 22 percent of Group sales. We saw improved growth in the fourth quarter despite challenges related to component shortages.
The operating result for the Group, adjusted for changes in exchange rates, increased by 15 percent (4) in the fourth quarter and by 28 percent (-10) for the full year. The operating margin improved to 5.9 percent (5.3) in the quarter and to 5.6 percent (4.5) for 2021. Our focus on delivering the leading client value proposition combined with strong focus on profitability through active portfolio management strengthened all business segments. The improvement was further supported by the cost-savings program initiated during 2020 and lower levels of provisioning compared to 2020.
With the continued return to business as usual related to the pandemic, government grants and support were materially reduced in the fourth quarter. The price and wage balance was successfully kept on par throughout the year. Going into 2022 we are well positioned to maintain this balance.
The Group delivered a strong operating cash flow, corresponding to 93 percent 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 a significant step in our strategy to pursue value growth with technology by announcing the agreement to acquire Stanley Security. This is a transformative acquisition, which we expect will lead to significant added commercial growth and a 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 perfectly placed to win in this environment.
AN EXCITING JOURNEY AHEAD
Going into 2022, we are preparing to close the acquisition of Stanley Security. The integration and value creation planning have started and is well on track. We are continuing to execute on our transformation programs in
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 clients with a structurally higher margin profile.
None of the above would be possible without a strong team. I would like to take the opportunity to express my deepest gratitude to the Securitas team for their resilience and phenomenal work during 2021.
President and CEO
PRESENTATION OF THE FULL YEAR REPORT
Analysts and media are invited to participate in a telephone conference on
US: + 1 631 913 1422
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 telephone conference.
For further information, please contact:
ABOUT SECURITAS
Securitas has a leading global and local market presence with operations in 46 countries. Our operations are organized in three business segments:
Group strategy
At Securitas, we are leading the transformation of the security industry by putting 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 solutions and by using data to add further intelligence. To execute on our strategy to become the intelligent protective services partner, we are focusing on four areas: empowering our people, client engagement, protective services leadership and innovation, and efficiency.
Group financial targets
Securitas has three financial targets:
An annual average increase in earnings per share of 10 percent
Net debt to EBITDA ratio of on average 2.5
An operating cash flow of 70 to 80 percent of operating income before amortization
Securitas has also set a strategic transformation ambition - to double our security solutions and electronic security sales by 2023, compared with 2018.
P. O. Box 12307, SE-102 28
Visiting address:
Lindhagensplan 70
Telephone: + 46 10 470 30 00
Corporate registration number: 556302-7241
www.securitas.com
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https://mb.cision.com/Main/1062/3500544/1531221.pdf
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