Year-end Report January–December 2006
Strong fourth quarter concludes 2006
*Pro forma sales increased during the period by 10 percent to MSEK 6,370 (5,805). Pro forma sales during the fourth quarter increased by 8 percent to MSEK 1,858 (1,727).
*Pro forma operating income before amortization increased during the period by 4 percent to MSEK 663 (638) and gave an operating margin of 10.4 percent (11.0). During the fourth quarter pro forma operating income before amortization increased by 2 percent to MSEK 256 (251). The pro forma operating margin before amortization was 13.8 percent (14.5) during the fourth quarter.
*Pro forma operating income after amortization increased during the period by 7 percent to MSEK 630 (588) and gave an operating margin of 9.9 percent (10.1). For the fourth quarter the operating margin after amortization pro forma was MSEK 249 (242), an increase by 3 percent.
*Earnings per share pro forma increased during the period to SEK 1.03 (1.01).
Combined Financial Statements
*Sales for the combined financial statements increased during the period by 10 percent to MSEK 6,370 (5,805). Operating income after amortization increased during the period by 1 percent and amounted to MSEK 602 (594). The operating margin after amortization was 9.4 percent (10.2).
*Earnings per share for the combined financial statements decreased by 6 percent to SEK 0.92 (0.98).
*The Board of Directors proposes a dividend of SEK 0.40 per share.
Comments from the CEO, Juan Vallejo
”When we look back on the past year, we can declare that 2006 was both a historical and successful year for Securitas Systems. For the full year 2006, Systems showed organic sales growth of 9 percent and total sales growth of 10 percent. The pro forma operating margin before amortization was in line with expectations. The fourth quarter was strong, with organic sales growth of 14 percent. In December we signed an agreement to acquire Larmassistans Teknik AB in Sweden during 2007, as well as 75 percent of the Italian company, CIS SpA, which means that Systems will be present in a total of 17 countries. During the year, we also acquired Elmaco (Belgium), Premier Systems Solutions (USA), as well as NOR Security (Norway). Systems estimate that the positive market development will continue during 2007. Organic sales growth for 2007 is expected to be in line with 2006. At the same time, we anticipate that acquisition growth will be higher than during 2006.”