Securitas AB Full Year Report January–December 2011
Thursday, February 09, 2012
· Total sales MSEK 17,026 (15,718)
· Organic sales growth 2 percent (4)
· Operating margin 5.7 percent (6.7)
· Earnings per share SEK 1.32 (1.60)
· Total sales MSEK 64,057 (61,340)
· Organic sales growth 3 percent (1)
· Operating margin 5.3 percent (6.1)
· Earnings per share SEK 4.75 (5.71)
· Free cash flow/net debt 0.08 (0.24)
· Proposed dividend SEK 3.00 (3.00)
COMMENTS FROM THE PRESIDENT AND CEO
The organic sales growth in 2011 was 3 percent, and including acquisitions the real sales growth reached 11 percent. We have made 19 major acquisitions with annual sales of BSEK 4.5 and strengthened our presence in theUnited Kingdom,Belgium, Eastern Europe, in the government sector in theUSand in various high growth markets inLatin America. We have also grown in the technology area and in the consulting and investigation market. The sales growth of 11 percent was the highest since 2002 but has strained the cash flow mainly due to working capital needs, but also due to the decrease in earnings compared to last year and a slight increase in Days of Sales Outstanding (DSO). In 2012 we will be restrictive on acquisitions until we have restored the financial target of free cash flow to net debt of 0.20.
The fourth quarter operating margin was burdened by further restructuring measures in Europe, in order to reduce the indirect cost base for 2012, and by full year adjustments and increases of payroll related taxes in the US as well as start up costs related to the large airport contract we have won in Canada. For the full year of 2011, the lower operating margin was primarily due to dilution from acquisitions, the loss of a few major contracts inEuropeand the discrepancy between wage costs and price increases.
During 2011 we have grown substantially by acquisitions and taken significant restructuring and integration costs which we will benefit from in 2012. We are investing in new solutions and technology resources to bring added value to our customers, and at the same time we have reduced the overhead costs. After a difficult year in 2011, I sense optimism when entering 2012, in spite of an instable and unpredictable macro economic environment.
President and Chief Executive Officer
PRESENTATION OF THE FULL YEAR REPORT
Analysts and media are invited to participate in a telephone conference on February 9, 2012 at 14:30 p.m. (CET) where Securitas CEO Alf Göransson will present the report and answer questions. The telephone conference will also be audio cast live via Securitas web. No information meeting will take place at Securitas headquarters at Lindhagensplan inStockholm.
To participate in the telephone conference, please dial in five minutes prior to the start of the conference call:
TheUnited States: + 1 866 458 4087
Sweden: + 46 (0) 8 505 598 53
United Kingdom: + 44 (0) 203 043 2436
To follow the audio cast of the telephone conference via the web, please follow the link
A recorded version of the audio cast will be available at www.securitas.com/webcasts after the telephone conference.
For further information, please contact:
Micaela Sjökvist, Head of Investor Relations, + 46 10 470 3013
Gisela Lindstrand, Senior Vice President Corporate Communications and Public Affairs, + 46 10 470 3011
Securitas is a knowledge leader in security, focusing on providing security solutions to fit each customer’s needs in 50 countries in North America, Europe, Latin America, Asia, Middle East andAfrica. Everywhere from small stores to airports, our 300,000 employees are making a difference.
SecuritasABdiscloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 13.00 p.m. (CET) on Thursday, February 9, 2012.