Interim Management Statement17 October 2011
G4S, the international security solutions group, reports today on trading for the year to date, including an overview of financial performance to 30 September 2011
Trends from the first half continued into the third quarter with continued strong performances in new markets and stable growth in developed markets.
An overview of the financial performance for the nine months to 30 September 2011 is as follows:
In the first nine months of 2011 overall revenues grew by 4% at actual exchange rates compared to the same period last year and by 5% at constant exchange rates. The group operating margin was slightly lower than the same period in 2010 at both actual and constant exchange rates.
Overall organic growth was 5%,with 3% in developed markets and 9% in new markets.
- In secure solutions, organic growth was 5% helped by a continued strong performance in [UK integrated services] and new markets
- In cash solutions organic growth was 2% overall; New markets grew 10%; In developed markets growth was still negative, it improved compared to the first half of 2011
Overall margins were slightly lower compared with the same period last year.
- Secure solutions margins were up slightly, in line with performance in the first six months of 2011
- Cash solutions margins performed in line with the first six months of 2011 and were down slightly on the same period in 2010
Acquisitions & Divestments
During the first nine months of the year, G4S has invested £38m in deferred consideration in respect of prior year acquisitions and £38m in capability-building acquisitions such as surveillance, fraud, intelligence and investigations services, offender monitoring technology and coin management services.
Our financial position continues to be strong and we remain on track to meet our cash conversion target of 85% of PBITA for the full year.
- Helen Parris
(Director of Investor Relations)
: +44 (0) 1293 554423
- Adam Mynott
(Director of Media Relations)
: +44 (0) 1293 554445
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 a secondary stock exchange listing in Copenhagen. G4S has operations in more than 125 countries and over 640,000 employees. For more information on G4S, visit www.g4s.com.