Securitas continues strategy execution by launching business transformation in Europe and Ibero-America
Securitas announced a business transformation in Europe and Ibero-America aimed at increasing operating margins to approximately 6.5% and 6.0% by 2024. This initiative includes planned costs affecting comparability of around MSEK -1,400 and capital expenditures of about MSEK -1,100 from 2021 to 2023. The ongoing modernization program and enhanced IT investments are expected to yield financial benefits by 2022. CEO Magnus Ahlqvist emphasized the importance of evolving client needs and the focus on small and medium enterprises.
- Target operating margin for Europe and Ibero-America is set to increase to 6.5% and 6.0%, respectively, by 2024.
- Significant investment in IT systems to enhance operational efficiency and support leaders.
- Recognition of items affecting comparability totaling approximately MSEK -1,400 due to asset impairment and organizational restructuring.
- Capital expenditure of approximately MSEK -1,100 planned, which may impact short-term financial results.
STOCKHOLM, Feb. 4, 2021 /PRNewswire/ -- The business transformation of Security Services Europe and Security Services Ibero-America targets an increase of the operating margin in the segments to around 6.5 percent and 6.0 percent respectively, upon completion in 2024. Items affecting comparability of approximately MSEK -1 400 and capital expenditure of approximately MSEK -1 100 are planned for the years 2021-2023.
In 2019, Securitas launched two major transformation programs in the Group. The first program radically modernizes the global IS/IT foundation throughout the Group and the second program is driving a business transformation in Security Services North America with the objective to improve efficiency. Important milestones have been reached by the two programs during 2020. The implementation is progressing well and is expected to be finalized according to plan by the end of 2021, in line with achieving the financial benefits of the programs by 2022.
Magnus Ahlqvist, Securitas President and CEO: "We will now continue the execution of our strategy by launching a business transformation program in Europe and Ibero-America. This program for Europe and Ibero-America aims to sharpen our capabilities at scale, both throughout and between countries, and is inspired by the transformation program we started in North America two years ago. Our clients' needs are evolving and serving them is our main priority, from global clients to the rapidly growing SME segment.
To this end we are making significant investments in IT systems to support our leaders and people with the latest tools and efficient processes. As part of the new program we will also build a dedicated solutions organization to accelerate the growth of our prioritized security solutions and electronic security business, as well as further strengthen and digitize our unparalleled guarding offering".
Related to the program, approximately MSEK -1 400 will be recognized as items affecting comparability over the course of the years 2021 to 2023. These costs relate primarily to the impairment of assets, systems integration and organizational restructuring charges. We will invest approximately MSEK -1 100 in capital expenditure related to this modernization.
The business transformation program in Europe targets an increase of the European operating margin to around 6.5 percent by 2024, with a first positive impact starting in 2022 and gradually increasing thereafter. In Security Services Ibero-America, the business transformation program targets an increase of the operating margin to around 6.0 percent by 2024.
Information:
Telephone conference on February 4 at 09.30 CET, in conjunction with the presentation of the Full Year Report 2020. Analysts and media are invited to participate in the telephone conference with Securitas CEO Magnus Ahlqvist and CFO Bart Adam. The telephone conference will also be audio casted live via Securitas' website. To participate in the telephone conference, please dial in five minutes prior to the start of the conference call:
United States: + 1 631 913 1422
Sweden: +46 8 566 426 51
United Kingdom: +44 333 3000 804
Please use the following pin code for the telephone conference: 621 490 78#
Journalists/press: Helena Andreas, SVP Communications & People, Securitas AB, tel +46 10 470 30 20 or email press@securitas.com
Investors/analysts: Micaela Sjökvist, Head of IR, Securitas AB, mobile +46 76 116 7443 or email micaela.sjokvist@securitas.com
This press release is also available at: www.securitas.com
This is information that Securitas AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was
submitted for publication, through the agency of the contact person set out above, at 07.55 (CET) on February 4, 2021.
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SOURCE Securitas
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