$7 million's worth of Danish security systems

Group 4 Falck Romania, branch of a Danish security service group estimates to make twice last year’s turnover in 2003. After having set foot in Romania by taking over the Valahia private security agency last year, the Danes are now contemplating investments in ambulance, fire extinguishing or money processing services, three sectors still part of the State’s monopoly.
Group 4 Falck’s Romanian operations logged $3.8 million turnover in 2002, as well as a profit rate of 18% of the turnover. The initial estimates for last year targeted $3 million turnover.
Group 4 Falck is the world’s second-largest security company. The Romanian branch of the Danish Group is planning to make some $7 million turnover in 2003, nearly twice last year’s turnover, as well as have profit reach some 20% of the turnover, its officials say. What will the Danish group do to expand on the market this year?
“We want to invest in the development of the vehicle stock and in money processing centres. We will begin by arranging a special money-processing space in Bucharest and have space rented for this purpose in seven other cities in the country, given the restructuring of the activity of the National Bank of Romania,” Liviu Tarsea, Group 4 Falck Romania country manager said.
The Danish group will invest more than $10 million this year, over $1 million of which will go to a capital increase of the branch in Romania from $500 to $1.25 million.
It could invest even more this year, if it manages to enter the State’s “turf” in terms of fire extinguishing and ambulance services. “We are now in talks with several Romanian companies to take over these activities (i.e. fire extinguishing, ambulance). We are discussing it with the Constanta Harbour Administration. They have such a service and have been working on an audit since July-August last year, which should help them decide whether to outsource the service or not,” the Danish group representative said. adrian.mirsanu@zf.ro