The multi-national Securitas reported ‘yet another strong quarter’. The Swedish company recorded 12 percent real sales growth in its (higher margin) technology and solutions business, not including the recently acquired STANLEY Security, ‘demonstrating that we are on the right track’, said Magnus Ahlqvist, Securitas President and CEO, pictured.
He said: “Overall, organic sales growth in the Group continued to be driven primarily by price increases, although volume growth was good within technology and solutions and in the airport security business. The operating margin improved to 6.6 percent [5.8 the year before], driven by North America and Europe with the contribution from the STANLEY Security acquisition and related cost benefits, together with strong growth and margin development in our technology and solutions business.
“Our integration and value creation processes with STANLEY Security are progressing according to plan. We have realised substantial cost benefits in our Technology business primarily in North America, and expect further benefits over the coming quarters. We see significant client interest in our strengthened offering and have material commercial synergy opportunities in our sales pipeline.
“Within our security services business we maintain sharp focus on quality and actively managing contracts with lower profitability. These efforts are progressing well throughout the Group, and especially in Europe the profitability improved as a result. In Europe, we saw strong margin development, also compared to the first quarter of 2023, as start-up costs in the airport security business were reduced and cost control improved. Furthermore, we were on par with price increases and wage costs in the Group in the first half year.
“During the summer we were glad to announce that we have extended and expanded our global security services contract and partnership with a leading global technology company.”
As for financial targets, the firm said it sought eight to ten per cent technology and solutions annual average real sales growth; and 8 per cent Group operating margin by year-end 2025.
On July 25, Securitas divested itself of its entire operation in Argentina, citing ‘the weak macroeconomic prospects and challenging business environment’. Visit www.securitas.com.
