Mainland Europe propels Securitas Systems' positive 1H performance

STOCKHOLM--Sales and net income at security systems and services provider Securitas Systems increased in the first six months of this year, with the growth fueled by operations in mainland Europe, the company's CEO, Juan Vallejo, said at a press conference marking the release of the company's 1H results. Group sales for 1H 2007 were up by 15 percent on the year, to roughly $500 million (all figures have been converted from the Swedish Kronor to the U.S. dollar), while net income stood at $28 million, up from $21 million in 1H 2006. Sales in 2Q for mainland Europe alone were up 16 percent on the year, which Vallejo said was the highest growth ever for the region. In addition to the positive results for mainland Europe, the company's US/UK/Ireland operations showed a return to profitability, thanks to organic 1H sales growth of 13 percent. To ensure this trend continues, Vallejo said the company would focus on increasing the service element in its business mix in the United States, while in the UK it would look to broaden its business mix to other segments. "We have banking as a main segment [in the UK], and we want to move on to other segments and have the business mix when it comes to our customer portfolio," he said. At a global level, there's a clear trend towards integrating more and more systems, explained Vallejo. "Before, it was very much a single system; an access control system, CCTV, intrusion," he said. "We see more and more trends that show our customers wanting to address these issues as they address every other issue in their company--online, through information." Securitas Systems will never be a "product company" Vallejo said, and going forward, it will differentiate itself through its strategy of adding value by providing a complete solution for clients. "We will always start from the service end, and make the solution for the customer," he said. Based on the positive 1H results, Securitas Systems has revised its full-year 2007 outlook upwards, with organic sales expected to come in above last year's level.