Following the acquisition of STANLEY Security, that was completed and consolidated into Securitas as of July 22, 2022, the Group has defined new financial targets of 8-10 percent technology & solutions annual average real sales growth, 8 percent Group operating margin by year-end 2025 and a net debt to EBITDA ratio below 3.0x. Securitas will present the strategy and roadmap for the new targets, as well as a trading update for STANLEY Security, at an investor update today at 2.00 p.m. CEST.

Bringing together Securitas and STANLEY Security is an industry-defining event. They will have an outstanding position to serve complex security needs for clients and by joining forces they are creating a strong global tech platform that will future proof the business for next-generation security solutions. They are now embarking on a truly exciting journey as one company, together geared for high value growth in the coming years. 

The new financial targets are aligned with the strategy to be a security solutions partner with world-leading technology and expertise, strongly positioned to deliver superior growth and increased margins:

• 8-10 percent technology & solutions annual average real sales growth 
• 8 percent Group operating margin by year-end 2025, with a >10 percent long-term operating margin ambition
• A net debt to EBITDA ratio below 3.0x

The new margin target replaces the previous target of an average increase in earnings per share of 10 percent 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 percent 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 percent of annual net income over time.

The strategic transformation ambition – to double the security solutions and electronic security sales by 2023, compared to 2018, is discontinued as the ambition was fulfilled by the acquisition of STANLEY Security.

Integration of STANLEY proceeding well

The integration of STANLEY Security is proceeding well and according to plan. In 2021, STANLEY Security had an installation backlog growth of 33 percent. Adjusted sales were approximately MUSD 1 650 with organic sales growth of 7 percent during the year, and the adjusted EBITDA margin  was 11 percent.

For the first six months of 2022, STANLEY Security had a record installation backlog, with growth of 18 percent compared to the same period last year. Adjusted sales were approximately MUSD 805 with organic sales growth of 3 percent.

The adjusted EBITDA margin 4 was 9 percent, temporarily impacted by the corona pandemic, supply chain issues, inflationary cost increases and obsolete pricing processes. The profitability improved in the second quarter 2022 compared to the first quarter 2022 with continued positive trend. Pricing, efficiency and cost actions have been implemented, and together with solid commercial momentum and accelerated value creation execution, profitability will improve going forward. 

STANLEY Security is a global provider of integrated security, health and safety solutions and services. Visit:  www.stanleysecurity.com.

Securitas is the world’s leading intelligent protective services partner. Their guarding, electronic security, fire and safety, and risk management solutions enable more than 150,000 clients to see a different world. https://www.securitas.com

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Source: securitas.com