• Abstract and Figures
• Public Full-text

Contents SECURIT AS ANNUAL REPOR Contents T 1997 The Securitas Group . 2–11 Integrity Vigilance Helpfulness . 2–3 The Chief Executive Officer: Focus Provides Security . 4–5 Europe – An Opportunity . 6–7 The Securitas Model in Figures . 8–9 The Securitas Share . 10–11 Business Focus . 12–25 Guard Services and Alarm Systems – A Growing Need. 12–23 • Important Services for Banks . 14–15 • Total Security Solutions for Large Companies . 16–18 • Alarm to Response for Smaller Companies and Retailers. 19–21 • Home Alarms – A Rapidly Growing Market . 22–23 Cash In Transit Services – Focus on Efficient Money Flows. 24–25 Development in Countries of Operation . 26–37 Sweden . 26–27 Norway • Finland • Denmark . 28–29 Germany • France . 30–31 Great Britain • Spain . 32–33 Portugal • Switzerland • Austria . 34–35 Hungary • Estonia • Poland . 36–37 Financial Reporting . 38–59 Report of the Board of Directors . 38–41 Consolidated Statement of Income . 42 Consolidated Cash Flow Analysis . 43 Consolidated Balance Sheet . 44–45 Parent Company . 46–47 Accounting Principles. 48–49 Treasury Policy . 50–51 Notes to the Financial Statements . 52–59 Audit Report . 59 Management. 60–65 Group Management . 60–61 Country Management . 62–63 Board of Directors and Auditors . 64–65 Other Information . 66–68 Addresses . 66–67 Financial Information . 68 The Securitas Group SECURIT Integrity Vigilance Helpfulness AS ANNUAL REPOR T 1997 e are more than 40,000 people who give The 1990’s have continued to be distinguished by growth Securitas a face. Our knowledge, ability and and acquisitions in France, Germany, Switzerland, Aust- Wambition to do a good job create Securitas’ ria, Spain, Finland, Estonia, Poland and Great Britain. image among our customers and the general public. Today Securitas is the leading security company in Our mission is to protect homes, work places and Europe, with operations in 14 countries. Sales in 1997 community. Our quest during Securitas’ 60-year history reached approximately MSEK 11,000. has always been to live up to our three lead words – This development has also resulted in a security Integrity, Vigilance, and Helpfulness. This has built industry that today consists of more than merely guards confidence in us with our customers and has enabled us and guarding. New business areas have been added and to keep on growing. the services have continued to develop and become more It is also this culture that has helped Securitas to specialized. grow in Europe. With the recommendations of loyal Every member of our staff wears the Securitas customers and the respect of industry colleagues, we insignia. Under this emblem we unite individuals in our have entered into new countries step by step, getting to efforts to do a good job and to develop ourselves and the know new companies and people. Company. The three red dots of the Securitas logotype During the 1980’s Securitas took the first steps are a reminder of our towards becoming Europe’s leading security company. three lead words that Growth and increased profitability were combined with guide us in these efforts. acquisitions in Norway, Denmark and Portugal, and Integrity, Vigilance and establishing operations in Hungary. In September 1991 Helpfulness remain the Securitas was listed on the Stockholm Stock Exchange. foundation of Securitas. Securitas Direct The History of Securitas is established as an international division. Acquisitions in France, Switzerland, New owner and Spain, Austria Spin-off of Further acquisi- management: and Germany. Assa-Abloy tions in France Concentration Acquisitions to the share- and Sweden. on security. in Norway, holders. Acquisi- Acquisi- Denmark and Securitas is Acquisitions tion of tion in Securitas is Portugal. listed on in Great Britain, Assa. Finland. founded in Operations the Stockholm Convertible Poland and Helsingborg, are established Stock to the Estonia. Sweden. in Hungary. Exchange. employees. 1934 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 Year Left: Securitas guard Martin Klinkert works as a patrol guard at a shopping mall, where security and safety are important to customers. 3 The Chief Executive Officer: Focus Provides Security The beginning of 1997 was slow but the year ended strong. We encountered a heavier restructuring in Germany than we had antic- ipated, but were also happy to see a quick turnaround in the recently acquired business in Great Britain, a doubled rate of expan- sion for Securitas Direct and the acquisition of TeleLarm. ur goal for the next three years is clear – contin- ued organic growth, operating margin in existing Ooperations of up to 10 percent, and additional acquisitions to confirm our position as Europe’s leading security company. The growing European security market worth about SEK 180 billion offers great opportunities. The year in brief Sales increased by 19 percent to MSEK 10,763 (9,074), Chief Executive Officer Thomas Berglund at 7 percent of this increase being due to organic growth, Securitas Alarm Monitoring Station in Stockholm. and the remainder to acquisitions. The organic growth, which was a continuation of the trend of prior years, recovered from losses of volume at the beginning of the demonstrates that development and refinement of various year. In Guard Services, and particularly in Alarm security service opens up new and growing markets. Systems, the positive development in Spain continues. Income before taxes increased by 12 percent to Other Western European nations show a strong MSEK 614 (550). The first half of the year was charac- development. Portugal retains its position as the Group’s terized by losses and restructuring costs in the German most profitable country. The good development in East- Cash In Transit Services business. The situation in Ger- ern Europe continues in Hungary and the new business- many improved during the second half of the year, and es in Poland and Estonia show a promising trend. other operations posted a stronger development as well. Our earnings performance was thus back to the previous Sharper focus trend of about 20 percent annual income growth. A virtual doubling of the growth rate in Securitas Direct, The average annual growth in sales over the last 10 from about 10,000 to almost 20,000 new alarms sold, is years has been 27 percent, with income growth of 29 proof of the force that follows from a sharper focus. The percent. Direct operations in the different countries were com- Nordic operations have had strong development, both bined at the beginning of 1997 into one unit under joint in terms of volume and income. In Sweden, thanks to the management, which is one of the major reasons for the acquisition of TeleLarm, the Group’s Alarm Systems increasing growth rate. Cash In Transit Services opera- business was strengthened. In Finland a nation-wide Cash tions have also received increased attention during the In Transit Services business has been built. year as a separate business area, and we are assuming that The Cash In Transit Services businesses acquired in this business will become even more clearly defined as a Great Britain during 1996 have been turned from signifi- separate business unit. cant losses into profitable operations starting 1998. Heavy restructuring of the Cash In Transit business in Germany The current position was completed during 1997, and the business is expected We are now Europe’s leading security company, with to achieve a break-even result for 1998. The German annual sales of more than SEK 11 billion and good organ- Guard Services business posted strong volume and earn- ic growth. The operating margin stands at 7.2 percent. ings growth. The Cash In Transit business in Spain has Our market share is 6 percent of a market worth SEK 180 4 The Securitas Group SECURIT AS ANNUAL REPOR T 1997 smaller and medium-sized companies among our alarm Market and growth customers. This business is at a slightly slower growth rate than Direct due to insufficient focus so far. Nordic Region As far as future acquisitions are concerned, they will be concentrated on areas we call the big five and the other The Big Five Western Europe. Not only do we need to cover certain “white spots” on the map of Europe, but we also need to Other Western Europe strengthen the different business areas. The security busi- Eastern Europe ness remains severely fragmented, which is demonstrated by the fact that with a market share of 6 percent, we are the largest. Acquisition targets are not lacking. Seen in a historic perspective, we believe that acquisitions can add Securitas’ between one and two billion SEK annually in new sales. Market in market Growth strategy Region SEK billion share in % Organic Acquisition Employee convertible Nordic Region 15 35 Yes Partly The Big Five 135 4 Yes Yes Employee commitment is the key to Securitas’ develop- Other Western Europe 24 5 Yes Yes ment. This commitment begins when each employee Eastern Europe 6 2 Yes Partly clearly and distinctly can see his or her role in the whole, Total 180 6 and gets the training and education needed to fulfill that task. Compensation must also be such that people want to stay and develop with the Company. For some employ- billion, which grows by at least 5 percent per year. ees, an engagement in the development of the company After extensive restructuring and integration work, we as an owner may further strengthen this commitment. now have a good grip on the acquisitions of recent years All employees were therefore offered to acquire in Great Britain, Germany and Sweden. shares on equal terms in Securitas when the Company went public in 1991. Also, when Securitas distributed A three-year perspective Assa Abloy to its shareholders in 1994, a convertible We will remain a focused security company.

Load more

  72

Copy Link