5 November 2013
INTERIM MANAGEMENT STATEMENT
G4S, the leading Global Integrated Security Company, reports today on trading
and financial performance from 30 June to date and gives an overview of
financial performance for the nine months ended 30 September 2013.
Overview - trading and financial performance from 30 June to date and nine
months to 30 September 2013
Trends from the first half of 2013 have broadly continued from 30 June to date.
Revenue, at constant exchange rates, compared to the same nine month period last
year grew by 6.4%(1). Profit before interest, tax and amortisation (PBITA) was
in line with the same period in 2012.
Trading update - nine months ended 30 September.
Overall organic growth was 4.8%. Growth was 14% in emerging markets and was
broadly flat in developed markets. The Group delivered satisfactory organic
growth despite challenging market conditions in Europe and lower US federal
government spending which has affected our secure solutions and systems
businesses in that market.
On 31 October, we agreed the sale of G4S Norway to Nokas AS for a total
consideration of £30.5 million including associated cash and debt. Completion is
subject to customary closing conditions. G4S Norway provides security and
security systems to customers across the country.
As at 30 September the Group was in a significantly stronger financial position
following the August share placing and receipt of the disposal proceeds from the
sale of our data storage business in Colombia. We expect to receive the proceeds
from the disposal of our Canadian Cash business in the fourth quarter. The Group
also had access to £960 million of committed, un-utilised facilities.
On 4 November, the SFO notified the company that it opened an investigation into
the provision of electronic monitoring services which commenced in April 2005.
The company will fully co-operate with this investigation. The company also
continues to provide support and full co-operation to the Ministry of Justice on
its audit of the electronic monitoring contract and, upon completion of the
audit, looks forward to working with the customer to address any differences on
this contract. The company is also providing full support and co-operation to
the Cabinet Office review of key contracts.
Summary and Outlook
Our emerging markets businesses, which account for more than 40% of group
profits, continue to achieve good results. Trading conditions are expected to
remain challenging in Europe and the USA during the fourth quarter. The
restructuring of our UK & Ireland cash solutions businesses and selected
businesses in continental Europe is underway with tangible benefits expected in
At our Capital Markets presentation today, we will be outlining how the proven
expertise and capabilities of our people, coupled with our leading market
positions and diverse customer base provide us with the foundation from which to
deliver sustainable, profitable growth
(1)( )- excluding the Olympics contract
For further enquiries, please contact G4S plc:
Helen Parris - Director of Investor Relations +44 (0) 1293 554423
For Media enquiries, please contact
Adam Mynott - Director of Media Relations +44(0) 1293 554445
Faeth Birch - RLM Finsbury +44 (0) 207 251 3801
A meeting for investors is being held in London at 2pm today. Webcast details
are as follows:
Notes to Editors:
G4S is the leading Global Integrated Security Company which specialises in the
provision of security products and services to customers.
G4S is quoted on the London Stock Exchange and has a secondary stock exchange
listing in Copenhagen. G4S is active in more than 115 countries and has 620,000
employees. For more information on G4S, visit www.g4s.com.