Continued margin improvement
Loomis’ operating income (EBITA)1) for the first quarter of 2013 amounted to SEK 218 million (212), of which exchange rate effects accounted for SEK –6 million.
The operating margin increased to 8.0 percent compared with 7.5 percent in the first quarter of 2012.
The Group’s revenue amounted to SEK 2,706 million (2,822). Organic growth was –2 percent (3) while real growth was –1 percent (9).
Income before taxes amounted to SEK 234 million (190) and income after taxes was SEK 165 million (133).
Cash flow from operating activities amounted to SEK 57 million (58), equivalent to 26 percent (27) of operating income (EBITA).
Earnings per share was SEK 2.24 (1.82) before dilution and SEK 2.19 (1.76) after dilution.
“Even though growth was weak, we are presenting strong results for both Europe and the USA. The earnings growth, which was stronger in the USA than in Europe, is mainly due to insistent efficiency improvements which resulted in better profitability at many of our branches. Meanwhile, the proportion of revenue from cash management services (CMS) continues to grow. During the first quarter a major restructuring of operations in the UK began and is expected to have positive results in time. The restructuring costs for the quarter were balanced by a positive non-recurring item relating to a change in pension plans in the UK” Lars Blecko comments in the interim report.
Lars Blecko also stated that the company had won a number of customer contracts during the quarter and after it had ended. In France, the first contract was signed for Loomis SafePoint® whereby the customer’s cash is deposited into the customer’s bank account the moment the bank notes are deposited in Loomis’ SafePoint® equipment at the customer´s premises. Also a strategically very important contract was signed with one of the major banks in the USA. This assignment, which will begin over the next few months, involves Loomis assuming responsibility for cash management at four locations, including two of the bank’s biggest units in Houston and San Diego. The assignment will open doors for more similar assignments with this and other banks.
“The development in the first quarter of 2013 has strengthened my conviction that we will reach our goal of an operating margin of 10 percent by 2014, at the latest” Lars Blecko concluded.
1)Earnings Before Interest, Taxes, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and revenue and Items affecting comparability.