Securitas, a leading safety and security solutions partner, has released its interim report for Q1 2024, showcasing positive financial results and a focus on long-term sustainable shareholder value. The company reported total sales of MSEK 39,260, representing a 4% increase compared to the same period last year.
One of the key highlights was the 7% organic sales growth achieved in the first quarter. This growth was driven by the strong performance of Securitas’ North American operations and the development of its Ibero-America region. However, challenges within the airport security business impacted sales in Europe.
Securitas also highlighted the progress made in integrating STANLEY Security, which has resulted in cost synergies and increased interest from both existing and new clients. The company aims to deepen client partnerships and achieve commercial synergies through this combined offering.
Despite lower cash flow in Q1, primarily due to seasonality and the impact of the Easter holiday, Securitas remains committed to strong cash flow management across the organization for a favorable outcome in 2024.
CEO Magnus Ahlqvist emphasized the company’s focus on operational value creation through growth in technology and solutions, profitability of the security services portfolio, cost efficiency, and digital innovation. The transformation programs and investments in technology capabilities are aimed at supporting the company’s long-term strategy.
Ahlqvist also highlighted positive feedback from clients regarding the new Securitas, which combines strong presence, technology, and data capabilities. The company is piloting an integrated Technology and Guarding services concept with a global client, demonstrating its commitment to innovation and meeting client needs.
Securitas remains on track to achieve its target of an 8% operating margin by the end of 2025, solidifying its position as the leading security solutions company. The company’s financial targets include technology and solutions annual average real sales growth of 8-10%, a net debt to EBITDA ratio below 3.0x, and an operating cash flow of 70-80% of operating income before amortization.
For more information about Securitas’ Q1 2024 results, you can visit their website or access the recorded version of the telephone conference via the provided links.
Securitas’ Q1 2024 results show positive financial performance, with total sales reaching MSEK 39,260, a 4% increase compared to the same period last year. One of the key highlights is the 7% organic sales growth achieved in the quarter, primarily driven by strong performance in North America and the development of the Ibero-America region.
However, the company also faced challenges in the airport security business, which impacted sales in Europe. Despite this, Securitas remains committed to long-term sustainable shareholder value and emphasizes its focus on operational value creation.
One notable development is the integration of STANLEY Security, which has resulted in cost synergies and increased interest from clients. Securitas aims to deepen client partnerships and achieve commercial synergies through this combined offering.
While Q1 saw lower cash flow, this was primarily due to seasonality and the impact of the Easter holiday. Securitas maintains its commitment to strong cash flow management throughout the organization for a favorable outcome in 2024.
CEO Magnus Ahlqvist highlights the company’s focus on growth in technology and solutions, profitability of the security services portfolio, cost efficiency, and digital innovation. The company’s transformation programs and investments in technology capabilities align with its long-term strategy.
Securitas remains on track to achieve its target of an 8% operating margin by the end of 2025, solidifying its position as a leading security solutions company. The company’s financial targets include annual average real sales growth of 8-10% for technology and solutions, a net debt to EBITDA ratio below 3.0x, and an operating cash flow of 70-80% of operating income before amortization.
One key advantage for Securitas is its strong presence, technology, and data capabilities, which have received positive feedback from clients. The company is piloting an integrated Technology and Guarding services concept with a global client, demonstrating its commitment to innovation and meeting client needs.
However, there are potential challenges or controversies associated with the subject. Some key challenges include the impact of the COVID-19 pandemic on the security industry and potential disruptions in the global economy. Additionally, there may be controversies related to data privacy and surveillance concerns in the security services sector.
For more information about Securitas’ Q1 2024 results, you can visit their website: Securitas. You can also access the recorded version of the telephone conference via the provided links on their website.