Securitas AB provides interim report, on track to grow STANLEY acquisition value

STOCKHOLM - From what it refers to as "the most transformative acquisition in Securitas history," Securitas AB - as one company with STANLEY Security - gave its interim report covering January-September 2022.

Only accounting for the period between July and September Securitas recorded roughly MSEK 36 million in total sales ($3.354 million USD). That is coupled with an organic sales growth of 7 percent. 

Other stats for the quarter:

•             Operating income before amortization MSEK 2 330 (1 605)

•             Operating margin 6.5 percent (5.9)

•             Items affecting comparability (IAC) MSEK –414 (–120), relating to the previously announced trans-formation programs and the acquisition of STANLEY Security

•             Earnings per share SEK 2.46 (2.15)*

•             Earnings per share, before IAC, SEK 3.24 (2.34)*

•             Cash flow from operating activities 122 percent (75)

“We are facing a global environment with increasing uncertainty and we are, as always, continuously working to ensure preparedness and strength also in more challenging times,” Securitas AB President and CEO Magnus Ahlqvist said, mimicking the thoughts of many CEOs this week. “The development in the third quarter showed continued strong demand. Organic sales growth was 7 percent (4), with growth in all business segments, supported by good momentum within technology and solutions sales and by high price increases. Security Services North America returned, as expected, to positive organic sales growth and reported 3 percent. STANLEY Security had mid-single digit estimated organic sales growth in the third quarter. “

“Our investments in a stronger client offering are generating results with good commercial traction,” he added. “We recently also renewed a significant global contract with expanded scope of services, reaffirming our position as the leading security solutions -partner to many of the most well-known brands world-wide.”

Excluding STANLEY’s revenues, Securitas’s North American operations delivered improved margins in the face of supply chain woes and workers shortages affecting most of the security industry.  Managing a positive price and wage balance for the group thanks in part to a dynamic price increase approach they said.

Looking to the future Securitas says that it’s looking to “accelerate” on its journey with STANLEY security. The potential of the companies working together to hold a leading position in the industry makes for strong expected growth and a better offering for clients.

“Together we have great potential to provide tech-enabled security solutions that create long-term value for our clients and shareholders.” Ahlqvist said. “After the STANLEY Security acquisition, we announced new financial targets at the Investor update in August to reflect our ambition to build the new Securitas and achieve 8 percent operating margin by the end of 2025. Our strong performance in the third quarter gives us confidence that we are on the right track.”

You can find the full webcast of the event online at www.securitas.com. A press release of the report is available here.