Annual Report 2008 - Securitas

48
Annual report
report of the Board of Directors
Report of the Board of Directors – Financial overview
The Board of Directors and the President of Securitas AB (publ.), corporate registration number
556302-7241, with its registered office in Stockholm, hereby submit the Annual Report and
consolidated financial statements for the 2008 financial year.
Securitas provides security services protecting homes, workplaces
and society. Our core business is guarding services and
the main service offering categories are specialized guarding,
mobile services, monitoring and consulting and investigation
services. Securitas is present in 37 countries in North America,
Latin America, Europe and Asia, with more than 240,000
employees.
After the listing of Loomis AB (treated as discontinued operations),
the Securitas Group consists of the business segments
Security Services North America, Security Services Europe and
Mobile and Monitoring, and in addition the guarding operations
in Latin America and Asia included under the heading Other in
the segment overview in Note 9.
Sales
Sales amounted to MSEK 56,572 (51,536). Organic sales growth
was 6 percent (6). The organic sales growth in the U.S. as well as
in Europe is in line with the respective security market growth in
2008. The new sales growth in both the U.S. and Europe is still
good, but has declined compared to 2007.
SALES JANUAry–DEcEMBEr
MSEK 2008 2007 %
Total sales 56,572 51,536 10
Acquisitions/Divestitures –1,324 –
currency change from 2007 –863 –
Organic sales 54,385 51,536 6
Operating income before amortization
Operating income before amortization was MSEK 3,271 (2,889)
which, adjusted for changes in exchange rates, represents an
increase of 10 percent.
INcOME JANUAry–DEcEMBEr
MSEK 2008 2007 %
Operating income before
amortization 3,271 2,889 13
currency change from 2007 –79 –
Operating income before
amortization 3,192 2,889 10
Securitas Annual report 2008
The operating margin was 5.8 percent (5.6). Security Services
North America has improved its operating margin due to a strong
focus on profitability, by optimizing the portfolio mix and through
operational efficiency improvements. The operating margin in
Security Services Europe was flat compared to last year with a
small dilution effect from the consolidation of the operations
acquired from G4S in Germany. In all business segments the
price increases have been approximately on par with wage cost
development in 2008.
Operating income after amortization
Acquisition related restructuring costs, which for 2008 mainly
relate to the operations acquired from G4S in Germany, impacted
2008 by MSEK –53 (–2). The restructuring of these operations
has in all material aspects been finalized. The integration proceeds
according to plan.
Items affecting comparability, consisting exclusively of the
cost of listing Loomis AB, impacted 2008 by MSEK –29 (–78).
In 2007, items affecting comparability consisted of the positive
outcome of the settlement of the Globe/Federal Aviation Administration
dispute in the USA of MSEK 50 and a provision of
MSEK –128 related to labor overtime compensation claims in Spain.
Financial income and expense
Financial income and expense amounted to MSEK –472 (–475).
Revaluation of financial instruments amounted to MSEK 3 (–7).
Income before taxes
Income before taxes was MSEK 2,617 (1,889). The real change
was 34 percent. The real change adjusted for items affecting
comparability of MSEK –29 (–78) and for impairment losses of
goodwill in 2007 of MSEK –350, was 11 percent. Adjusted also
for acquisition related restructuring costs of MSEK –53 (–2), real
change was 13 percent.