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Securitas announces new financial targets following Stanley Security acquisition

August 24, 2022  By  SP&T Staff


Following the acquisition of Stanley Security, Securitas has defined new financial targets of eight to 10 per cent technology & solutions annual average real sales growth, eight per cent group operating margin by year-end 2025 and a net debt to EBITDA ratio below 3.0x.

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

According to the company, the new margin target replaces the previous target of an average increase in earnings per share of 10 per cent 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 per cent 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 per cent of annual net income over time.

The company said its strategic ambition to double security solutions and electronic security sales by 2023, compared to 2018, was fulfilled by the acquisition of Stanley Security.

“The integration of Stanley Security is proceeding well and according to plan,” stated the company. “In 2021, Stanley Security had an installation backlog growth of 33 per cent. Adjusted sales were approximately MUSD 1 650 with organic sales growth of seven per cent during the year, and the adjusted EBITDA margin was 11 per cent.”


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