Skip Links

Chairman's Statement
 
 
CHANGING DYNAMICS / CONSTANT PERFORMANCE
 
The first full year of trading for Group 4 Securicor focused on bringing together two organisations to create one company which is stronger and able to maximise the opportunities available across a wide range of markets.

Results
The excellent results for 2005 reflect the first full year of trading for Group 4 Securicor following completion of the merger between Securicor and the security businesses of Group 4 Falck in July 2004.

Profit before interest, taxation, amortisation and exceptional items increased by 16% from £218.5m* to £254.0m, derived as to £169.9m from manned security, £32.1m from security systems and £76.7m from cash services, less head office costs of £24.7m. The overall profit margin on sales from continuing business improved from 5.7%* to 6.2%. Organic turnover growth increased from 6.2%* to 7.0%. Adjusted earnings per share increased from 9.5p to 11.1p.

* To show a meaningful comparison, these prior year figures are pro forma, and at constant exchange rates.

 Dividend
In accordance with the board’s aim to reduce the company’s target dividend cover from over three times to two and a half times over the medium term, the directors recommend a final dividend of 2.24p or DKK0.2435 per share, payable on 11 July 2006, which, taken with the interim dividend of 1.30p or DKK0.143 per share paid on 16 December 2005, makes a total dividend of 3.54p or DKK0.3865 per share for the year ended 31 December 2005. This compares with a total dividend of 2.71p per share for 2004 for those shareholders who formerly held Securicor shares and 1.85p per share for those shareholders who formerly held Group 4 Falck shares.

Board changes
I paid tribute in my statement last year to Lars Nørby Johansen and Colin Sharman who left us, respectively, on 30 June and 31 December 2005.

Grahame Gibson joined the board on 1 April 2005 and became Chief Operating Officer in July. At the start of this year, we welcomed Mark Seligman to the board as a non-executive director. Mark has an impeccable City background and is already proving a valuable addition to the board.

Last September, Waldemar Schmidt announced that he would retire following the annual general meeting in June 2006. I accepted his decision with regret as he is one of the most experienced service sector industrialists in Europe.

As previously announced, I will retire following the Annual General Meeting after 50 years of service in the industry. It is service which I have thoroughly enjoyed. I am delighted that Alf Duch-Pedersen will take over from me as chairman of the board. I believe firmly that the board is well structured to take on new challenges in the future. It has my full support as a major shareholder.

Staff tributes
It gives me great pleasure to pay tribute to the four hundred thousand group employees around the world. They uphold and enhance Group 4 Securicor’s excellent reputation as the world leader in the security industry. I thank all of them, for their support both to the group and to me personally, and I send them my very best wishes for the future.

Future prospects
The first full year of trading for Group 4 Securicor focused on bringing together two organisations to create one company which is stronger and able to maximise the opportunities available across a wide range of markets. The integration of the two companies has been a great success and is a credit to everyone involved in the process. Whilst bringing the organisation together and developing the strategy for the future, we have also continued to drive growth, improve profits and develop a platform from which the company can continue to move forward.

Our decision to significantly increase the dividend for 2005 and to aim to reduce dividend cover over the medium term reflects the culmination of a successful merger and our confidence in the strength of our business and the sustainability of its performance into the future.


Jørgen Philip-Sørensen
Chairman

 
January 2005
Group 4 Securicor donates £100,000 to Save the Children to support countries affected by the Asian tsunami 		  February 2005
Group 4 Securicor works with the bid team for the 2012 Olympics in London and the police to conduct a risk audit of the proposed site of the Olympic Park 		  April 2005
The Wackenhut Corporation receives Safety Act Designation & Certification from the US Department of Homeland Security 		  May 2005
Group 4 Securicor launches its striking new brand identity across its global businesses
             
July 2005
G4S Justice Services acquires ADT Offender Monitoring and consolidates its position as the global leader in offender monitoring services 		  August 2005
Group 4 Securicor sells the security contracts and related assets of Cognisa Security, Inc. to US Security Associates, Inc. 		  October 2005
Group 4 Securicor announces a 26% Black Economic Empowerment deal with Kagiso Ventures and a newly established employee trust in South Africa 		  November 2005
G4S Cash Services (UK) agrees a landmark four-year pay deal for its employees