The UK and Belgium ‘hampered organic sales growth’ at the multi-national security contractor Securitas, according to its annual report for 2014. The company points to continued growth in what the company terms ‘security solutions’ and ‘technology’ sales.
The Swedish company reported an operating margin of five percent compared with 5.1pc the year before. Organic sales growth for the year was 3pc, compared with 1pc the previous year.
Alf Göransson, President and Chief Executive Officer, pictured, said: “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.”
In 2012, the company’s 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 ten percent.”
Like another multi-national G4S, and indeed like international businesses in general, Securitas is seeing more growth in the developing world rather than Europe. Göransson said: “Security Services Ibero-America is over-achieving their target, Security Services Europe is close to theirs but Security Services North-America is lagging behind.”
He stressed that the speed of technology and security solution sales will continue to be the most important strategic focus of the company.
The report pointed to France and Norway, and Turkey, as key drivers in Security Services Europe. The European arm of the company offers guarding, ‘security solutions and technology’ in 27 countries, and airport security in 15 countries. The company in Europe has in total 118,000 employees and 800 branch managers. According to the report, the European security market is estimated to be growing at about 1 percent. Europe had an operating margin of 6.4 per cent, compared with 6.1pc the year before. The European arm reported much the same client retention rate – 93 percent compared with 92pc the year before – and employee turnover, 26 percent compared with the previous year’s 27pc.
For the full report visit – http://www.securitas.com.
