JULY-
Total sales MSEK 26 501 (28 214)
Organic sales growth 0 percent (4)
Operating income before amortization MSEK 1 327 (1 574)
Operating margin 5.0 percent (5.6)
Items affecting comparability (IAC) MSEK -112 (-60), relating to
Earnings per share
Earnings per share, before IAC,
Cash flow from operating activities 199 percent (138)
Reinstated dividend proposal
JANUARY-
Total sales MSEK 81 477 (82 642)
Organic sales growth 0 percent (5)
Operating income before amortization MSEK 3 488 (4 241)
Operating margin 4.3 percent (5.1)
Items affecting comparability (IAC) MSEK -218 (-126), relating to -
Earnings per share
Earnings per share, before IAC,
Net debt/EBITDA 1.9 (2.5)
Cash flow from operating activities 163 percent (72)
Significant impact and uncertainty related to the corona pandemic
Comments from the President and CEO
The corona pandemic continued to have negative impact on the Group's operations in the third quarter, but the overall business situation improved compared to the second quarter. The Group's organic sales growth was 0 percent (4) in the quarter and 0 percent (5) for the first nine months, with all business segments improving during the quarter. The airport security business is still heavily impacted by the corona pandemic, with the largest negative impact in Security Services Europe. We have been able to offset some of the portfolio reductions with increased extra sales, helping our clients with their security needs related to the -corona pandemic.
Security solutions and electronic security sales was 22 percent (21) of total Group sales. The installation business within electronic security is negatively impacted by the corona -pandemic, but improved in the third quarter -compared to the second quarter.
The Group's operating margin was 5.0 percent (5.6) in the third quarter and 4.3 percent (5.1) in the first nine months, with all business segments behind last year mainly due to the corona pandemic. The operating -margin was supported by cost saving actions and government grants but hampered by increased provisioning. The price and wage balance was on par in the first nine months.
The operating result, adjusted for changes in exchange rates, declined by 8 percent in the third quarter and by 15 percent in the first nine months. Earnings per share, before items affecting comparability, amounted to
The Group delivered a strong cash flow in the first nine months, also when excluding the effects from corona-related government support measures. We have re--initiated acquisition activities and in the third quarter we -announced the strategically important acquisition of STANLEY Security's electronic security businesses in five countries. The acquisition was closed on
In light of the improving financial performance and the solid financial position under a continued prudent approach, the Board of Directors has decided to reinstate the dividend proposal of
Preparing for a strong future
Although we experienced improvements in the general business environment in the third quarter compared to the second quarter, much uncertainty remains regarding the duration and long-term implications of the pandemic. We maintain focus on our four main priorities to handle the corona pandemic: the health and safety of our employees, -delivery of our services to our -clients and supporting their new needs, managing cash flow and cost.
In the second quarter we announced a cost savings program in the Group, addressing the profitability in parts of our business due to the corona pandemic. We have started to implement this program in the third quarter and restructuring costs of MSEK 59 were recognized as items affecting comparability. The first savings will start impacting in the fourth quarter and gradually increase thereafter. We earlier -estimated a range of --restructuring costs of MSEK 350-500 with a payback period of 2 years. The final amount of restructuring will largely depend on changes related to govern-ment grants and the development of the airport security business. We expect to finalize the program at the end of the second quarter 2021.
Despite the challenging situation with the corona pandemic we maintain high focus on our transformation -programs: the business transformation in
President and CEO
PRESENTATION OF THE INTERIM REPORT
Analysts and media are invited to participate in a telephone conference on
US: + 1 631 913 1422
Please use the following pin code for the telephone -conference: 621 490 78#
To follow the audio cast of the telephone conference via the web, please follow the link www.securitas.com/investors/webcasts. A recorded version of the audio cast will be available at www.securitas.com/investors/webcasts after the -telephone conference.
FOR FURTHER INFORMATION, PLEASE CONTACT:
FINANCIAL INFORMATION CALENDAR
For further information regarding Securitas IR activities, refer to www.securitas.com/investors/financial-calendar
ABOUT SECURITAS
Securitas has a leading global and local market -presence with operations in 56 countries. Our operations are organized in three business segments:
Group strategy
At Securitas, we are leading the transformation of the -security industry by putting our clients at the heart of our business. We solve our clients' security needs by offering qualified and engaged people, in-depth expertise and innovation within each of our protective services, the -ability to combine services into solutions and by using data to add further intelligence. To execute on our strategy to become the intelligent protective services partner, we are focusing on four areas: empowering our people, client engagement, protective services leadership and innovation, and efficiency.
Group financial targets
Securitas has three financial targets:
An annual average increase in earnings per share of 10 percent
Net debt to EBITDA ratio of on average 2.5
An operating cash flow of 70 to 80 percent of operating income before amortization
Securitas has also set a strategic transformation ambition - to double our security solutions and electronic security sales by 2023, compared with 2018.
This is information that
P.O. Box 12307, SE-102 28
Visiting address: Lindhagensplan 70
Telephone: +46 10 470 30 00. Fax: +46 10 470 31 22
Corporate registration number: 556302-7241
www.securitas.com
(C) 2020 Electronic News Publishing, source