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 2011

In the first quarter of 2011, overall revenues grew 4.7% at constant exchange rates compared to the same period last year, and grew 3.8% at actual exchange rates. The group operating margin was slightly lower.

An investor and analyst conference call took place today on 10 May 2011.

To listen to the call again please use the following numbers, which are available for 7 days.

Alternatively, you can view the conference call transcript or click here to view our webcast, podcast or mp3.

An overview of the financial performance for the three months to 31 March 2011 is as follows:

Organic Growth

Overall organic growth was 4% with New Markets growth at 8% and developed markets at 2%.

In secure solutions, organic growth was 5% with strong performances in the UK and New Markets and a continued improvement in North America and Continental Europe.

Cash solutions organic growth was -1%, with good underlying growth in New Markets being offset by a 3% decline in developed markets. The decline in developed markets was due to sustained low interest rates continuing to cause volume pressure in markets such as the UK, Ireland and Scandinavia. The previously announced contract losses in Romania and South Africa also had a negative impact.

Margins

Profits for the first three months were above 2010 levels, but overall margins were slightly lower (on both a constant and actual exchange rate basis) compared to the same period last year due to lower cash solutions margins.

• Secure solutions margins were maintained
• In cash solutions, margins were 1% lower due to the volume issues outlined above
  

Material Events, Transactions and Financial Position

There have been no material events, transactions or changes in the financial position of the group since the 2010 annual results were announced on 15 March other than as outlined in this statement.

Outlook

As expected, organic growth has started to improve in developed secure solutions markets and strong organic growth continues in developing markets. Based on recent contract awards and our bid pipeline, we expect the organic growth rate to continue to improve during 2011.

AGM & Dividend

The AGM will take place on 19 May 2011 and the final dividend of 4.73 pence (DKK 0.4082) per share is proposed for payment on 3 June 2011 (6 June in Denmark).
Results for the six months to 30 June 2011 will be published on 24 August 2011.

Capital Markets Day

On 25 May, G4S will be holding a Capital Markets Day in London for analysts and investors.

Contact details

• Helen Parris (Director of Investor Relations) : +44 (0) 1293 554423

Media Enquiries

• David Allchurch or John Sunnucks (Tulchan Group) : +44(0) 0207 353 4200

About G4S

G4S is the world's leading security solutions group, which specialises in outsourcing of 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 an additional stock exchange listing in Copenhagen.

G4S has operations in more than 125 countries and more than 625,000 employees. For more information on G4S, visit www.g4s.com.