Securitas sets ambition to double security solutions and electronic security business by 2023
06 December 2019
At the Investor Day on Thursday 5 December 2019, Securitas presented a new ambition for its security solutions and electronic security business: to double in size from approximately 20 billion crowns (BSEK) in 2018 to approximately 40 billion crowns (£3.24 billion) by 2023. Securitas also updated its official financial targets.
The earnings per share target of an annual increase of 10 percent over a cycle remains, and the free cash flow to net debt target of 0.20 is replaced by a net debt to EBITDA target of on average 2.5. A new target related to cash flow is introduced: operating cash flow of 70 to 80 percent of operating income. The dividend policy of distributing 50 to 60 percent of net income is unchanged.
Securitas is leading the transformation of the global security industry, from traditional guarding to a wide range of protective services, including on-site, mobile and remote guarding, electronic security, fire and safety and corporate risk management. These protective services are either sold on a stand-alone basis or combined as security solutions to the clients. In the full year of 2018 security solutions and electronic security sales represented 20 percent, or approximately BSEK 20, of total Group sales and delivered an operating margin of approximately 10 percent.
Securitas also presented its strategy for the coming years - becoming the Intelligent Protective Services Partner by focusing on the three key areas client engagement, protective services leadership, innovation and efficiency.
“Our transformation firmly positions us to reinforce our leadership position in the security industry”, says Magnus Ahlqvist, Securitas President and CEO. “We are acting from a position of strength and we see new opportunities within a large, growing and changing market. We have clear targets to drive long term value creation for clients and shareholders and we have the organization, leaders and people ready to execute”.