Anyone in the security and valuables shipping business that has not yet entered the money processing sector, which looks increasingly profitable and alluring in the light of the upcoming shift to the "hard ROL", still has time to make the transition.
The first security companies to recognise the opportunity created by the banks' withdrawal from this sector have seen their businesses grow. They are committed to rapid expansion, taking the place vacated by the banks.
Danish Group 4 Falck, which has been involved in this business for about a year now, doubled its turnover on the Romanian market to 4.5 million euros in the first quarter, thanks to the expansion of its network of processing centres to seven units. Other companies have already entered or are now probing the market, looking to tap into this business.
"Money processing is a big opportunity for security companies. This activity can be a source of overall growth for the security market. I believe companies that provide security guards or the transportation of valuables could profit from this, too," suggested Adrian Vasu, chairman of the Romanian Association of Security Technology, which is mainly comprised of security system providers. The security market, estimated as standing at some 100 million euros a year and growing at a rate of 10%, might quickly develop into the new sector which the major commercial banks are now getting ready to leave.
"Compared to the budgeted level, our turnover was twice as high during the first quarter. The result was due to the expansion of the network of processing centres and to the decline in operating costs. The full-year turnover target in the budget will certainly be exceeded and perhaps will be double that expected. However, we cannot provide a more accurate estimate any sooner than the middle of this year," Liviu Tarsea, chairman of Group 4 Falck Romania, the local branch of the Danish Group 4 Falck, the world's second leading security service provider, told Ziarul Financiar. The profit rate for the above-mentioned period stood at 12.5%-14%.
The company is in talks with the top four commercial banks on the market, with a view to concluding outsourcing deals for their money processing operations.
Its monthly processing capacity is 25,000bn ROL and will be expanded soon, with three more locations planned.
The Danish group officials at the end of last year announced they would invest a further $20 million to expand their processing centre network.
The Danes, who entered the security market in 2002 following their $2 million acquisition of a local company providing security services, have practically changed the face of the security market in Romania. They made massive investments in expanding into market sectors no other private company had tapped into before, such as money processing (previously a state monopoly), and have made moves in the direction of fire-fighting, ambulance services and the provision of coast guards. adrian.mirsanu@zf.ro
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