CG4S PLC INTERIM MANAGEMENT STATEMENT 10 November 2008 CG4S PLC INTERIM MANAGEMENT STATEMENT G4S, the international security solutions group, will be updating analysts and investors today on trading for the period to 9 November 2008, including an overview of financial performance to 30 September 2008. Management will be indicating that the performance of the business has been very strong and that there have been no material changes in underlying trading or market conditions across the various businesses since the interim results announcement for the 6 months to 30 June 2008. Actual performance has also benefitted from recent euro and dollar strength. An overview of the financial performance for the nine months to 30 September 2008 is as follows: Organic Growth (calculated to exclude acquisitions and disposals, and at constant exchange rates) Overall organic growth was 10.3% (2007: 8.6%) with 8.6% in developed markets and 16.5% in New Markets. In security services, organic growth was strong at 9.8% as a result of increasing outsourcing trends In cash services there was excellent organic growth of 12.1% with strong performances across both developed and New Markets. Margins Overall margins were in line with the same period last year. Security services margins were broadly unchanged with improved performances from some markets offset by the impact of new contracts and start-up costs in the US Government sector. In cash services, trading continued to be strong, with margin improvements being driven mainly by the businesses in Europe. Acquisitions & Divestments No significant acquisitions or divestments have been made since the half year. In September the group announced it had received an offer for its French manned security business. Once this transaction is completed it will conclude G4S's exit from the French market. The total net amount invested in acquisitions for the year to date is approximately £555 million. This was financed with an equity placing raising £276 million in May 2008 and the balance funded from the group's own resources. The most significant acquisitions were Global Solutions Ltd and ArmorGroup. Other acquisitions included businesses based in Greece, Malta, Serbia, UK and USA and the buy-out of minority interests in businesses in the Baltic States and Macau. All of these acquisitions are performing well and will play integral roles in delivering the new strategy to drive accelerated growth and development for the group. Financing In July 2008, the group completed a $514 million and £69 million private placement of notes, which mature at various dates between 2013 and 2020 and bear interest at rates between 6.09% and 7.56%. As reported in the interim results to 30 June 2008, the group also has in place a revolving credit facility of £1.1 billion (at 0.225% above LIBOR) and an existing private placement of $550 million (at interest rates between 5.77% and 6.06%) neither of which mature before 2012. Outlook The strong trading performance in the first half of the year has continued. Despite recent economic uncertainty and turmoil in the financial markets and based on the strong underlying performance described above and indications of current trading, we remain very confident about the ongoing performance of the group and expect to deliver strong EPS growth for the full year. For further enquiries, please contact: Helen Parris +44 (0) 1293 554400 Media Enquiries: Kevin Smith, Citigate Dewe Rogerson +44 (0) 7973 672649 Notes to Editors: G4S is the world's leading international security solutions group, which specialises in outsourced business processes in sectors where security and safety risks are considered a strategic threat. G4S is the largest employer quoted on the London Stock Exchange and has a secondary stock exchange listing in Copenhagen. G4S has operations in over 110 countries and over 570,000 employees. For more information on G4S, visit www.g4s.com. An investor and analyst conference call/webcast is taking place today at 09.00 (UK time). Please register by clicking on the following link: http://wcc.webeventservices.com/view/wl/r.htm?e=125418&s=1&k=72831B1299B05DCCF10 E0F77DC34A22E&cb=genesys Slides will be available for download from 08.30 at: http://www.g4s.com/home/investor_relations-financial_presentations.htm Preliminary results for the year to 31 December 2008 will be published on 10 March 2009.
G4S PLC, Interim Management statement
| Source: G4S plc
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