Global Security Services company Securitas AB have announced a better than expected financial performance for the period January to December 2014. In addition to the positive figures Securitas also signalled their serious intent to occupy the security solutions and technology space as well as continuing with their manpower business, writes Infologue.com’s Publisher Bobby Logue. Infologue.com believes that this strategy will pay dividends in the mid to longer term. Underpinning this commitment was the acquisitions of the security and critical communications systems integrator SAIT in Belgium and 24% of Iverify one of the leading Remote Video Services companies in the USA which operates a state-of-the-art Remote Video operations monitoring center, one of the largest of its kind. Simultaneously Iverify has acquired 100 percent of the shares a security technology integrator company TransAlarm.
Moving to the Securitas AB financials, headline figures included:
|Total Sales||70217 MSEK||65700 MSEK|
|Organic Sales Growth||3%||1%|
|Operating Income before Amortisation||3 505 MSEK||3 329 MSEK|
|Earnings per Share||5.67 SEK||5.07 SEK|
SEK – Swedish Krone – (1 SEK – 1 GBP = .079206)
When releasing the results the Securitas President and CEO Alf Göransson commented as follows:
“Organic sales growth continued to show a positive trend driven by successful sales efforts, our strategy of security solutions and technology offerings and an improved macro economic climate in the USA. All business segments improved compared with last year and the organic sales growth reached 5 percent in the fourth quarter. “
Earnings per share improved
“In real terms earnings per share improved with 8 percent in 2014. The operating income improved in the quarter as well as for the full year compared to last year. The re-organization in Spain has been implemented during the fourth quarter for which a one-off restructuring cost of MSEK –19 (MEUR –2) was recognized.”
Continued growth in security solutions and technology sales
“In 2012, sales of security solutions and technology represented 6 percent of Group sales. Our target is to increase it to a run rate of 18 percent by the end of 2015 and in the fourth quarter it reached 10 percent.”
“Significant progress has been made since early 2012 and many markets have contributed well to this achievement. Security Services Ibero-America is over-achieving their target, Security Services Europe is close to theirs but Security Services North-America is lagging behind. This is mainly due to the good organic sales growth in guarding contracts and the outcome of the Affordable Care Act (ACA) in the USA. Consequently this impacts the ability of the Group to reach the target of 18 percent run rate by the end of 2015, which is likely out of reach, although we will have come a long way and internally the target has been a strong driver for change. The speed of technology and security solution sales will continue to be the most important strategic focus of Securitas in years to come. In 2014, security solutions and technology sales amounted to BSEK 6.5 and grew with 28 percent compared to 2013, and we estimate that we can continue to grow the security solution and technology sales in at least the same range in 2015.” Concluded the Securitas President.