Securitas AB Annual Report 2005

cialized security companies: Loomis Cash Handling Services AB
(currently Cash Handling Services, to be renamed), Securitas
Direct AB and Securitas Systems AB. The three new companies
will, subject to a decision by an Extraordinary General Meeting
proposed for September 25, 2006, be distributed to the shareholders
by way of a tax free dividend and listed on the O-list of
the Stockholm Stock Exchange immediately thereafter.
The Group’s development
The development 2005 confi rms Securitas’ position as a world
leader in Security through stable conditions in all of the Group’s
divisions. Security Services USA has returned to a positive
organic sales growth and good margin development. Security
Services Europe has implemented a new customer adapted organization
and stabilized the temporary decline in the segment
Transport and aviation. Securitas Systems and Direct show
stable organic sales growth and margin development. Cash
Handling Services has had a somewhat slower organic sales
growth compared to 2004, but after the divestment of the German
operations, the operating income has improved with 14 percent.
All together, this development creates confi dence for 2006.
Parent Company operations
The Parent Company of the Group, Securitas AB, conducts no
operations. Securitas AB contains Group Management and support
functions.
The Parent Company’s income amounted to MSEK 480
(502) and mainly refers to administrative contributions and other
revenues from subsidiaries. The income after fi nancial items
amounted to MSEK 4,287 (7,184). In the income after fi nancial
items are included result from sale of shares in subsidiaries
of MSEK –46 (3,238), dividends from subsidiaries of MSEK
4,619 (4,379), interest income of MSEK 1,197 (1,068), interest
expense of MSEK –1,568 (1,587) and other fi nancial income
and expenses, net, of MSEK 75 (213). Net income for the year
amounted to MSEK 4,264 (7,188).
Cash fl ow for the year amounted to MSEK -400 (2,004).
The Parent Company’s fi xed assets amounted to
MSEK 54,682 (45,850) and comprise mainly of shares in subsidiaries
of MSEK 54,397 (45,489). Current assets amounted to
MSEK 19,060 (19,433, whereof receivables from subsidiaries
amounted to MSEK 16,764 (16,731). Liquid assets amounted
to MSEK 1,759 (2,159).
Shareholders’ equity amounted to MSEK 31,899 (28,731).
The Parent Company’s liabilities are mainly constituted of
interest bearing debt of MSEK 41,013 (35,629), whereof
liabilities to subsidiaries of MSEK 27,463 (23,164).
The Parent Company’s fi nancial statements are from January 1,
2005 prepared according to the Swedish Annual Accounts Act
and RR 32 Reporting by Legal Entities. The transition to
RR 32 has not lead to any adjustment of previous periods.
Proposed allocation of earnings
The statements of income and the balance sheets of the Parent
Company and the Group are subject to adoption by the Annual
General Meeting on April 3, 2006.
Funds in the Parent Company available for distribution:
Retained earnings
SEK
19,907,937,764
Net income for the year 4,263,756,009
Total 24,171,693,773
The Board of Directors and the President
propose a dividend to the shareholders of:
Financial overview
SEK 3.50 per share
SEK
1,277,706,140
To be carried forward 22,893,987,633
Total 24,171,693,773
The Board’s statement on the proposed dividend
With reference to the Board’s dividend proposal, the Board
of Directors hereby makes the following statement according
to Chapter 18 section 4 of the Swedish Companies Act.
Retained earnings from previous years amount to
SEK 19,907,937,764 and the net income for the fi nancial
year 2005 amounts to SEK 4,263,756,009. Provided that
the Annual General Meeting 2006 resolves to allocate the
results in accordance with the Board of Director’s proposal,
SEK 22,893,987,633 will be carried forward. After distribution
of the proposed dividend, there will be full coverage
for restricted equity.
The Board has considered the Company’s and the Group’s
consolidation requirements through a comprehensive assessment
the fi nancial position of the company and the Group, as well as
the possibilities of the company and the Group to comply with
its obligations. The proposed dividend will not jeopardize the
Company’s and the Group’s ability to make the investments that
are considered necessary. The Company’s fi nancial position does
not give rise to other assessment than that the company can continue
its operations and that the Company is expected to comply
with its obligations in a short term and a long term perspective.
The Board has considered all known conditions that can affect
the Company’s fi nancial position and that have not been considered
within the framework of the assessment of the Company’s
consolidation requirements and liquidity.
With reference to the above, the Board assesses that the dividend
is justifi able considering the requirements the art, extent
and risks of the operations pose on the Group’s equity and the
Company’s and the Group’s consolidation requirements, liquidity
and position in general.
Concerning the company’s and the Group’s income and position
in general, please refer to Statement of income, balance
sheet, statement of cash fl ow, as well as comments and notes.
SECURITAS 2005 41