SECURITAS Q1 PROFIT MEETS FORECAST ON N.AMERICA STRENGTH

By Agata Rybska

(Reuters) - Core profit at Sweden's Securitas rose 8% in the first-quarter year on year, in line with analyst expectations, the company reported, saying its strategic transformation was on track and it was committed to its 2025 margin goal.

The results were led by its performance in North America while in Europe the company said it faced challenges in its airport security business.

Securitas, one of the world's biggest security services firms, posted an operating profit before amortisation (EBITA) of 2.36 billion Swedish crowns ($216.95 million).

This was against an analysts forecast of 2.33 billion, a poll published by the company showed, and up from 2.18 billion a year earlier. EBITA margin widened to 6.0% from 5.8%, slightly lagging the 6.1% expected by analysts.

Securitas' operating margin improved both in security services and technology and solutions, CEO Magnus Ahlqvist said in a statement, adding Securitas is on the right path to achieving its target of an 8% operating margin by 2025.

The acquisition of Stanley Security, which it closed in 2022, has added technology solutions exposure to Securitas's staff-intensive offering, but put it in significant debt, which the company has been trying to reduce.

Integration of the U.S. electronic security company realised further cost synergies, Ahlqvist said, although these were partly offset by operational cost increases.

($1 = 10.8781 Swedish crowns)

(Reporting by Agata Rybska; editing by Jason Neely and Philippa Fletcher)

2024-05-08T08:04:16Z dg43tfdfdgfd