13 May 2008
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 31 March 2008.
Management will be indicating that although there have been no material changes
in trading performance or market conditions across our various businesses since
the preliminary results announcement in March, underlying performance is now
running slightly ahead of overall management expectations, aided in part by a
small benefit from recent euro strength.
An overview of the financial performance for the three months to 31 March 2008
is as follows:
Organic Growth
Overall organic growth improved strongly to 11% with around 9% in developed
markets and around 17% in New Markets.
In security services, organic growth remained strong as a result of improved
performances from Continental Europe and North America and continued good
progress elsewhere.
Cash services continued to deliver excellent organic growth with strong
performances across both developed and New Markets.
Margins
Overall margins were ahead by 0.1% on the same period last year.
Security services margins were broadly unchanged with improved performances from
some markets offset by contract start-up costs in the US and Scandinavia.
In cash services, trading continued to be strong, with margin improvements being
driven mainly by our businesses in Europe.
Acquisitions & Divestments
In May, G4S completed the acquisitions of GSL and ArmorGroup International plc.
Other acquisitions for the year to date include businesses based in Greece, UK
and USA and the buy-out of minority interests in businesses in the Baltic States
and Macau. The total amount invested in acquisitions for the year to date is
approximately £520 million. These acquisitions will play integral roles in
delivering the new strategy which will drive accelerated growth and development
for the group. Based on the strong pipeline of potential acquisitions, we will
continue to acquire capability-building businesses to aid our strategic
development in addition to a continued focus on organic growth.
Outlook
Based on the strong underlying performance described above and indications of
current trading, we remain very confident in the performance of the group for
2008.
AGM & Dividend
The AGM will take place on 29 May 2008 and the final dividend of 2.85 pence (DKK
0.279) per share is proposed for payment on 6 June 2008.
For further enquiries, please contact:
Debbie McGrath +44 (0) 1293 554400
Helen Parris
Media Enquiries:
Kevin Smith, Citigate Dewe Rogerson +44 (0) 7973 672649
Notes to Editors:
G4S is the world's leading international security solutions group. It
specialises in assessing current and future risks and developing secure
solutions to minimise their impact across a wide range of geographic markets and
business sectors.
G4S is a major provider of risk management and protection to governments and
major corporate customers around the world and is an expert in all aspects of
local and international secure logistics.
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 530,000 employees. For more information on G4S, visit
www.g4s.com.
An investor and analyst conference call is taking place today at 08.30 (UK
time). The dial in number for the call is +44 (0) 207162 0025.
Results for the six months to 30 June 2008 will be published on 27 August 2008.
Interim Management Statement
| Source: G4S plc
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