The latest year end financial results for Securitas AB demonstrate a strong and transformative year for the organisation, with record level operating results and the highest operating margin in more than a decade.
Commenting on these latest figures, the company’s President and CEO, Magnus Ahlqvist, said, “Our strategy, investments and actions are starting to pay off and resulting in increasing profitability in all business segments.” He believes that the strong cash flow generation has contributed to reduced leverage and a solid financial position at the year end, preparing the company for the closure of the Stanley Security acquisition.
The company has finalised two transformation programmes and has achieved cost ¬saving targets in key areas and good benefit realisation in North America towards the end of the year, all of which, Ahlqist suggests, positions the company with a stronger foundation to enhance client value and drive operating ¬margin improvement.
“We finished the year with 4 percent organic sales growth in the quarter and full year. The conditions in the business environ¬ment improved gradually during the year, with good commercial activity across all business segments while growth was hampered in North America due to reduced ¬corona-related extra sales and the previ¬ously announced contract losses.
Sales of ¬security solutions and electronic security showed real sales growth of 8 percent in 2021, repre¬senting 22 percent of Group sales. We saw improved growth in the fourth quarter despite challenges related to component shortages,” commented Magnus Ahlqvist.
“The ¬operating result for the Group, ¬adjusted for changes in exchange rates, increased by 15 percent in the fourth quarter and by 28 percent for the full year. The operating margin -improved to 5.9 ¬percent in the quarter and to 5.6 percent for 2021,” he confirmed.
At the end of 2021, Securitas took a signifi¬cant step in its strategy to pursue growth through technology with the agreement to acquire Stanley Security. “This is a transformative acqui-sition, which we expect will lead to ¬significant added commercial growth and a substan¬tial oper¬ating margin improve¬ment over time,” said Ahlqvist.
Going into 2022, the company is preparing to close the acquisition of Stanley Security. The integration has started and is well on track, according to Ahlqvist. “We are continuing to -execute on our transformation programs in Europe and Ibero-America, which are developing according to plan. The transform¬ation programme in North America was successfully final-ised in 2021 and we see ¬positive impacts on our operations and the oper¬ating margin at the end of 2021 with further opportunity going into 2022.”
“When Stanley is integrated and the transformation programs are fully implemented, we will have built a new Securitas – a modern, digitised and innovative security solutions partner for our clients with a structurally higher margin profile” concluded Magnus Ahlqvist in his closing statement.
