Securitas provides update on Stanley Security, new financial targets

STOCKHOLM – In an investor update webcast today, Securitas discussed further details on its recent Stanley Security acquisition and new financial targets. 

In opening the webcast, Securitas President and CEO Magnus Ahlqvist described it saying, “We’re looking at it like a mini-version of a capital markets day.” Noting that the last time they had a capital markets day was in 2019. “But we have not been sitting still. We have been driving extensive transformation, modernization, and digitization of the business because we set out the objective to come out stronger, come what may, out of the pandemic.” He added.

Securitas announced its excitement in moving forward as one company in what it described as “embarking on a truly exciting journey” and that its new financial targets are aligned with its strategy to be a security solutions partner. Those targets are 8-10 percent technology and solutions annual average real sales growth, 8 percent group operating margin by year-end 2025 (with a >10 percent long-term operating margin ambition), and a net debt to EBITDA ration below 3.0x. “The new margin target replaces the previous target of an average increase in earnings per share of 10 percent and the margin targets in the respective business segments related to the business transformation programs in the Group.” Securitas wrote in its official press release.

The Securitas acquisition of Stanley is the largest to date for the company and shows their interest in bolstering their electronic security services. “With the combination with Stanley we are now greatly enhancing our technology capability,” Ahlqvist said. “That is as I mentioned before one of the key drivers, and the needs are also increasing from our client base.” 
    
The integration of Stanley’s customer base into Securitas will be a sizable amount of expansion for the company. Stanley reportedly had a record installation backlog in the first half of 2022 with 18 percent growth compared to the same time last year. “The profitability improved in the second quarter 2022 compared to the first quarter 2022 with continued positive trend.” Securitas wrote. “Pricing, efficiency and cost actions have been implemented, and together with solid commercial momentum and accelerated value creation execution, profitability will improve going forward.”

The full web broadcast of the investor update can be found at www.securitas.com.