Loomis’ tried and tested business model has laid the foundations for offering services of an increasingly high quality and improving profitability. With the new financial targets and the Loomis Model as a foundation, Loomis is ready to increase the focus on growth – both organically and through acquisitions.
Loomis offers banks and retailers secure cash in transit (CIT) and cash management services (CMS), and thereby Loomis is creating the most efficient flow of cash in society. Over the years, by improving the efficiency of processes and methods and through a strong capacity for innovation, high ethics and moral behavior, Loomis has succeeded in providing more efficient and secure cash management services. Loomis is also able to guarantee that the right amount of cash is at the right place at the right time.
The Loomis Model contributes to quality and profitability
Loomis has a decentralized organizational structure with around 400 branches in more than 20 countries with responsibility for their own performance and profitability. A high level of independence requires a clear and simple business model; a model that provides synergies and facilitates successful operational management of the branches. Loomis’ formula for how the Company is to be run is called the Loomis Model.
The model is based on Loomis’ core values and Code of Conduct, and describes how Loomis, based on a number of important principles, organizes and runs the business with the support of Loomis’ business processes. The model includes a framework for setting targets and an opportunity for a constant exchange of experiences, follow-up and benchmarking between branches.
Loomis’ high quality service execution, in combination with the Loomis Model for operational management has, over the years, enabled the Company to set and achieve high objectives in terms of improved margins, and an increasing number of and more profitable branches. Loomis has thus grown into a strong company and built a stable foundation for a new strategic focus phase: Growth.
Loomis has identified the following five strategic focus areas for growth, where the opportunities are considered good and where Loomis believe it has a competitive edge compared with other companies in the market.
- Cash Management Services (CMS) in the US
Loomis holds the market-leading position in the US, which also is the single largest market for Loomis. Loomis’ many years of experience of offering advanced cash management solutions in more mature European markets and Loomis substantial investments in state-of-the art cash centers will be a strong competitive advantage when the US market matures and customers start demanding more comprehensive services. Loomis has determined that there is great potential for the Company in the USA and that most of the organic growth is in CMS.
SafePoint is a safe cash management unit that secures the cash deposited by the customer in the unit and credits the customer’s bank account no later than the following day, thus helping to improve security and provide better cash flow and liquidity for the customer.
The market penetration for Loomis SafePoint is currently low. Therefore, Loomis estimates the possibilities for increased revenues from SafePoint in the United States to be good. Loomis also intends to increase the marketing of SafePoint in Europe where volumes today are low.
Through a worldwide network of partners, leading suppliers and agents, Loomis can, after the acquisition of VIA MAT, store, manage and transport primarily precious metals and foreign currency anywhere in the world. Loomis believes there is good potential to grow and attract new customers through a broader service offering and by utilizing Loomis' existing infrastructure.
Loomis ambition is to be number one or two in each of its geographical markets in which Loomis operates. To achieve and maintain a leading market position, Loomis intends to complement organic growth with bolt-on acquisitions that strengthen Loomis' position in existing markets, but also, to a greater extent than before, in emerging markets.