Securitas AB Annual Report 2005

The Group – Five-year fi nancial overview
2001–2005: strengthened market leadership
During the past fi ve years, Securitas has established itself as a market
leading guarding company and a major player in the U.S. cash handling
market. Furthermore, the Group has implemented an organization consisting
of fi ve specialized divisions and considerably strengthened its market
position for Securitas Systems and Cash Handling Services.
2001 New steps for Cash Handling Services
The divisionalization of Securitas was completed and
began showing results. Greater focus contributed to high
organic sales growth of 7 percent.
Further, Securitas established itself in the U.S. cash
handling industry through the acquisition of Loomis,
Fargo & Co. Meanwhile, Cash Handling Services in Europe
entered into agreements with HSBC and Barclays
to take over the banks’ cash management in the United
Kingdom. The fi rst step towards market leadership in the
non-guarding business areas was taken. During 2001 we
also experienced the tragic events of September 11 in the
USA, which for Securitas resulted in temporarily higher
sales volumes.
2002 Refi ned services drive organic growth
After several years of acquisitions, the focus of the
Group turned to organic growth and concept refi nement.
Securitas had one of the best years ever, with organic
sales growth of 8 percent and an operating margin reaching
6.8 percent.
In the aftermath of September 11, 2001 the company
experienced a temporary increase in demand for its
services, which along with the introduction of the euro
boosted operating income in 2002.
One exception to the internal focus was the acquisition
of VNV in the Netherlands, which made Securitas
one of the market leaders in a country with an attractive
market for Security Services in Europe.
2003 A challenging year for Security Services
USA and Cash Handling Services in Europe
2003 was a challenging year for Securitas due to the
general slowdown in the world economy, a weak
U.S. dollar development and the effect of discontinued
business from the U.S. airport security operations that
were federalized in late 2002. We also had signifi cant
operational disruptions in the Cash Handling Services
business. However, it was also the year in which the
integration process in the Security Services USA division
was completed with the consolidation of all brands under
the Securitas name. In addition, the fi nal step in the
divisionalization of the Cash Handling Services business
was taken with the appointment of a joint management
for U.S. and European operations.
2004 New acquisitions strengthen Securitas
Systems and Cash Handling Services
Developments in 2004 confi rmed that Securitas was
back to positive organic sales and margin growth after
the challenging year of 2003. Strong development was
seen in Security Services Europe, Securitas Systems,
Direct and Cash Handling Services, while Security
Services USA stabilized its sales despite continued
strong price pressure. Securitas Systems established its
presence in the United Kingdom and Ireland through
the acquisition of Bell and strengthened its market position
in France by acquiring Eurotelis. Cash Handling
Services acquired Valiance and became a leading player
in the French cash handling market.
2005 Stability and positive trends in Security
Services USA
With a stronger local organization and the resulting
improvement in customer rentention, Security Services
USA again reported positive organic growth and a stable
margin development. A clearer organization, a single
brand and more effi cient methodologies were among the
most important results of the extensive structural work
in the U.S. guarding operations. Security Services Europe
introduced a new customer-segmented organization to
place greater focus on service development and new
customer segments. Changes in the European airport
security business temporarily placed pressure on the
division’s margins. Securitas Systems reported strong
development in its U.S. operations and completed two
acquisitions in the USA. Direct began an expansion in
France and Benelux.
28 SECURITAS 2005