Securitas makes 'unexpected' accounting change at Q3 earnings, shares fall

Securitas AB

07/11/2023 13:14

** Securitas  SECUb.ST  shares fall close to 6% after the
Swedish company made an unexpected accounting change in their Q3
report, while its results came roughly in line with consensus
    ** "If we look into the divisions they've made an accounting
change that we weren't aware of, and I guess that's what makes
investors a bit confused," says Kepler Cheuvreux analyst Johan
Eliason, but adds "I would think that the share price will
probably recover"
    ** As of Q3, the Securitas Critical Infrastructure Services
business unit has been moved from the ­business segment
Securitas North America to Other, the company says in the
statement
    ** The change, the analyst points out, means the company
moved a loss making unit into "others" category, making the
North American margin look a bit better than expected, while
"not comparing apples with apples"
    ** Its Q3 adjusted EBITA was SEK 2.76 billion, is in line
with SEK 2.77 billion seen in company consensus
    ** Share is on track for its worst day in over 14 months,
since Aug 24, 2022, when it closed 6.3% lower

 (Reporting by Agata Rybska)
 ((gdansk.newsroom@thomsonreuters.com;))