Securitas Rebrands SES to Securitas Technology, Aims to Increase Technology & Solutions Sales 8-10%
Securitas laid out its aggressive financial targets as well as provided an update on its Stanley Security business during an investor presentation.
(l-r_Securitas CFO Andreas Lindback, President & CEO Magnus Ahlqvist and Securitas Technology Global President Tony Byerly.
STOCKHOLM — Securitas revealed new financial targets and an update of its Stanley Security business in a “mini version” of its first Capital Markets Day presentation since 2019.
The global security giant says it is targeting 8-10% annual average real sales growth in technology & solutions, 8% group operating margin by year-end 2025, with a >10% long-term operating margin ambition and a net debt to EBITDA ratio below 3.0x
“In essence, we are shifting more of the business towards more technology and solutions and we are enhancing the quality and profitability of the guarding portfolio. These are the two main drivers in terms of the margin target to achieve 8% by 2925,” Securitas President and CEO Magnus Ahlqvist said during the investor presentation.
Ahlqvist also noted that Securitas Electronic Security would be rebranded to Securitas Technology to better reflect its offerings.
The company says the new margin target replaces the previous target of an average increase in earnings per share of 10% and the margin targets in the respective business segments related to the business transformation programs in the group.
The existing operating cash flow target of 70-80% of operating income before amortization remains the same, and the new capital structure target of a net debt to EBITDA ratio of below 3.0x replaces the previous net debt to EBITDA ratio of on average 2.5x, and is estimated to be achieved in 2024. The dividend policy is unchanged, remaining in a range of 50-60% of annual net income over time.
The addition of Stanley Security more than doubles Securitas’ technology business, positioning it globally as the second largest commercial technology provider, Securitas Technology Global President Tony Byerly noted during the position.
Securitas signed a definitive agreement to purchase Stanley Security from Stanley Black & Decker for $3.2 billion in cash last December. The deal was officially completed July 22.
In 2021, STANLEY Security had an installation backlog growth of 33%. For the first six months of 2022, STANLEY Security had a record installation backlog, with growth of 18% compared to the same period last year, according to Securitas.
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