9 November 2009
G4S PLC
INTERIM MANAGEMENT STATEMENT
G4S, the international security solutions group, will be updating
analysts and investors today on trading for the year to date,
including an overview of financial performance to 30 September 2009.
There have been no material changes in trading performance, financial
position or market conditions across the various G4S businesses since
the half yearly results announcement for the six months to June 2009.
Trends from the first half continued into the third quarter,
including slightly slower growth in developed markets' commercial
security services, offset by continued strong performances in
government and new markets. The improvement in the operating margin
achieved at the half year was maintained.
An overview of the financial performance for the nine months to 30
September 2009 is as follows:
In the first nine months of 2009 overall revenues grew by 23% at
actual exchange rates compared to the same period last year and by 9%
at constant exchange rates. Operating profits were up 25% at actual
rates and up 12% at constant rates. The group operating margin
improved by 0.1% at actual rates and by 0.2% at constant rates.
Organic Growth
Overall organic growth was 4.2%, despite a lower inflation
environment, with around 1.6% in developed markets and 12.3% in new
markets.
§ In secure solutions, organic growth was 3.8% as a result of
lower growth in Europe and North America commercial services, offset
by a continued strong performance in government and new markets.
§ Cash solutions continued to deliver strong organic growth
at around 5.9%.
Margins
Overall margins were ahead by 0.2% (at constant exchange rates) on
the same period last year.
§ Secure solutions margins were up by 0.1%. Margins in new
markets were up 0.3% with strong performances in the Middle East and
Africa.
§ In cash solutions, trading continued to be strong with
margins up 0.7% on the prior year helped by improved profitability in
Europe and North America.
Acquisitions & Divestments
No significant acquisitions have been made since the half year. G4S
invested a total of approximately £54.8m on acquisitions during the
first half of the year. Of this, £19.7m was invested in capability
building acquisitions such as a juvenile justice business in the US
and SecuraMonde, a global cash management consultancy based in the
UK. G4S also purchased minority interests for a total of £33.5m and
paid a further £1.6m in deferred consideration from previous
acquisitions. The disposal of the French security business was also
completed in the first half of 2009.
Financial position
Our financial position continues to be strong and we have current
headroom from committed funds of more than £550 million. Cash flow
also remains strong and we are on track to hit our cash conversion
target of 85% of PBITA for the full year.
Outlook
Our businesses have continued to perform well despite facing
challenging market conditions. In the first nine months of 2009 the
group has achieved robust organic growth and margin improvement and
we remain confident that we can deliver a strong performance in 2009
and into 2010.
For further enquiries, please contact:
Helen
Parris
+44 (0) 1293 554400
Media Enquiries:
Kevin Smith, Citigate Dewe
Rogerson
+44 (0) 7973 672649
Alison
Flynn
+44 (0) 1293 5544000
High resolution images are available for the media to view and
download free of charge from www.vismedia.co.uk.
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 585,000 employees. For
more information on G4S, visit www.g4s.com.
An investor and analyst conference call is taking place today at
09.00 (UK time). To register for the conference call (and access free
international dial in codes), please click on the following link and
follow the instructions:
https://eventreg1.conferencing.com/webportal3/reg.html?Acc=998166&Conf=168705
or dial +44 2071620035; Conference PIN 829992
Preliminary results for the year to 31 December 2009 will be
published on 16 March 2010.
---END OF MESSAGE---
Interim Management Statement
| Quelle: G4S plc