More Cash Leaders Report Return to Good Times

Last month, we covered the annual results of five of the major companies in the cash sector – Brinks, Loomis, NCR, Crane Co and Diebold Nixdorf. 2022 was a good year for all bar the latter.

This month is the turn of Prosegur, Spectra Systems and Orell Füssli, all of whom turned in a good performance for the year.

Prosegur bounces back

After a sluggish 2021 with minimal growth in sales and a fall in profitability, Prosegur bounced back in 2022, reporting good results in all markets and activities. Group revenue increased by 19.3% to €4.17 billion, and EBITA by 30.7% to €291 million.

For the Prosegur Cash business, which now operates in 20 countries, sales increased by 23.3% to €1.87 billion. Operating profit increased by 26.8% to €260 million, and net consolidated profit by 185% to €94 million. Growth was seen across all regions.

During the year, Prosegur Cash acquired control of the world’s third largest operator in the retail currency exchange sector, ChangeGroup, which its describes as a further step in developing the company’s New Products areas as a key pillar of its transformation strategy.

Growth in New Product activities exceeded 47% (55% excluding divestments), driven by the strong performance of Cash Today (digitisation of cash at the point of sale), Corban (correspondent banking) and Forex (through the acquisition of ChangeGroup). In 2022, sales of New Products reached €480 million, and their share of the company’s total revenues has already reached 25.6%.

Expansion for Spectra Systems

Revenue for the year increased by 18% to $19.63 million. The adjusted operating profit (EBITDA) increased by 17% to $8.07 million, with profit before tax and amortisation (PBTA) also increasing by 17% to $7.76 million.

Spectra’s main business is Authentication Systems, accounting for 92% of the company’s revenue, and 99% of its adjusted EBITDA in 2022. During the year it expanded its sensor capability for exotic counterfeits, sold its first Banknote Disinfection System (BDS) for use by an Asian central bank, and launched a polymer substrate with built-in Level 3 covert security aimed at higher denomination banknotes.

Profits up at Orell Füssli

Sales in the Security Printing Division of Orell Füssli fell by 4.6% to CHF 70.4 million, but profit (EBIT) increased by 59% to CHF 9.7 million, despite higher raw material and energy costs.

Order intake was significantly higher than in the previous year and production facilities were well utilised, said the company. The international business was further expanded and new consulting services were launched, resulting in over 90% of sales coming from exports.

For 2023, the Security Printing Division expects good capacity utilisation, but due to the product mix in the order backlog, a slight decrease in sales and an EBIT margin at the level of 2021.

The industrial Systems Division, comprising the serialisation solutions provider Zeiser, generated sales of CHF 20.9 million, down by 17%, and EBIT of CHF 0.9 million, versus the previous year’s CHF 5.5 million. The result for 2022 will be burdened by a bad debt of 1.7 million from one customer.

The results were impacted by the pandemic and in the first half of 2022, order intake was well below expectations, but picked up in the second half of the year. Thanks to the expansion of the Zeiser portfolio with new technologies (including those obtained from Inspectron in 2021) and the realisation of postponed projects, the division expects sales growth and significantly higher profitability again in 2023.

Glory updates forecast

Glory, which will announce its annual results for year ending March 2023 in May, has provided an update on its forecast.

Revenues are likely to be higher by 2% at ¥255 billion, and the forecast operating loss of ¥7 billion has been reduced to ¥500 million.

According to the company, as procurement difficulties ease for most parts, it is seeing a gradual recovery in production and sales in Japan and overseas, and expect a particular increase in sales to the retail industry, especially in overseas markets.

Operating income is expected to improve as a result of increased sales, reduced expenditure and an improved product mix.