G4S creates shareholder value as a result of a number of core investment attributes
- Organic revenue growth
- Developing markets exposure
- Major position in UK Government outsourcing
- A GDP + growth business
- Disciplined M&A
G4S has delivered strong organic growth since its creation in 2004, performing well above global GDP growth despite recent pressure on the economic environment.
We are able to do this as a result of our significant and increasing exposure to higher growth developing markets and leading market positions in key growth markets such as the UK Government outsourcing sector, where growth is strong and expected to continue.
Organic growth is supplemented by disciplined reinvestment of free cash flow in acquisitions focused on extending our developing markets presence in key growth countries and adding capability to help address the needs of customers in growing sectors.
- Well diversified business
- Defensive services
- Structural growth through the cycle
- High customer retention and visibility of earnings
Our business is well diversified across more than 125 countries and numerous customer sectors, with no over-reliance on any single area.
Security is at the core of our service proposition and is one of the areas on which governments and commercial customers focus for cost-savings and reductions during economically challenging times, creating opportunities for outsourcing.
We have a growing number of long-term contracts coupled with excellent customer relationships and a customer service culture which result in strong customer retention rates and good earnings visibility.
Strong financial disciplines
- Operational efficiency and margin expansion
- Free cash flow generation/ cash conversion
- Disciplined and coherent M&A/ capital return policy
Our track record of delivery has been achieved within a framework of strong financial discipline focusing on operational efficiency to drive margin expansion and a continual focus on high levels of cash generation.
We look to achieve an appropriate balance in our capital structure between investment in acquisitions and investment returns through a progressive dividend policy.
These attributes, combined with the growing reputation of G4S as the world’s leading security solutions provider, result in superior returns for our investors over the longer term.