(Adds detail, background)
STOCKHOLM, Dec 5 (Reuters) - Sweden's Securitas
aims to double sales of electronic security, including combined
packages, to about 40 billion crowns ($4.2 billion) by 2023, it
said on Thursday.
The world's biggest security group, the services of which
include guard personnel, alarm surveillance and airport
security, wants to increase the share of electronic surveillance
in its business mix, thereby reducing wage costs. The company
currently employs about 300,000 people around the globe.
Securitas also seeks to move away from standalone service
contracts towards more profitable packages that combine
electronic security with other protective services, such as fire
safety, corporate risk management and traditional manned
guarding services.
Employment rates are high in many countries, putting upwards
pressure on wages, while some are also increasing minimum wage
levels.
Chief Executive Magnus Ahlqvist last month said that labour
markets had become increasingly challenging across the company's
markets and that the price-wage balance would remain a key focus
in 2020.
The company's security solutions and electronic security
sales operations accounted for a fifth of group sales in 2018,
with an operating margin of 10%. That compared with 6% for the
group as a whole.
Ahead of presentations to investors in Stockholm later on
Thursday, the rival to Britain's G4S also reiterated an
earnings per share growth target of 10% and introduced a
cashflow target of 70% to 80% of operating income.
Securitas' shares were up 0.5% at 0900 GMT, roughly in line
with the wider market, taking 2019 gains to 10%.
($1 = 9.6261 Swedish crowns)
(Reporting by Anna Ringstrom
Editing by David Goodman)
