Securitas grows profit as demand recovers from pandemic slump

div classBodysc17zpet90 cdBBJodivpSTOCKHOLM Reuters Security services group Securitas reported on Wednesday a rise in firstquarter profit that matched expectations helped by strong sales growth in Europe. p

pOperating profit rose to 1.25 billion Swedish crowns 126.7 million from a yearearlier 1.03 billion. Four analysts polled by Refinitiv had on average forecast a 1.25 billion crown profit.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pCEO Magnus Ahlqvist said in a statement the group had passed on higher wage costs to customers in the quarter and expected to be able keep maintaining that balance. p

pHigher COVIDrelated sickness costs and spending related to labour shortages weighed on results while a pickup in demand for airport security on the back of a recovery in travelling from the nadir hit during the pandemic gave a boost.p

pSales at the Security Services Europe division grew 8 before acquisitions, while the North America unit experienced a 2 decline due to previously announced contract terminations and reduced COVIDrelated extra sales.p

pSecuritas said in December it had agreed to buy U.S. rival Stanley Black & Deckers electronic security solutions business for 3.2 billion in its biggest acquisition to date.p

pIt said on Wednesday it still had the ambition to close the deal, which requires regulatory approval, towards the end of the second quarter.p

pSecuritas in April pulled back an application for EU approval. A company spokesperson said this week the retraction was due to EU authorities needing more time to review the deal and that Securitas aimed to refile the application as soon as possible. p

pShares in the worlds biggest security services group were up 2.5 at 1134 GMT. p

p1 9.8646 Swedish crownsp

p Reporting by Anna Ringstrom editing by Niklas Pollardp

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