Trading Update

  • 12 Dec 2006 10:47
Group 4 Securicor plc, the international security solutions group, will be updating analysts and investors prior to the start of the company’s close period which commences on 12 January 2007. In commenting on trading for the ten months to 31 October 2006, management will be indicating that, despite the weakening of the US dollar and higher interest charges, performance is in line with overall expectations and that:
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Organic Growth

Overall organic growth was around 7%, which was fairly consistent across all product lines. Developed markets organic growth was around 5% with continuing strong growth in developing markets of around 16%.

Margins

Overall margins are slightly ahead of the same period last year which reflects a trend across all product lines.

General Trading

In the security services division there have been no material changes in trading performance or market conditions since the interim results announcement. Some of the businesses which were experiencing trading difficulties during the first half of the year have improved slightly in the third quarter and further progress is expected in the next six months.

In cash services, trading continues to be strong and in line with our overall expectations. As highlighted during the interim results, negotiations continue for the disposal of our cash services business in Germany and we expect to reach agreement on this shortly.

Acquisitions & Divestments

In line with our strategy to enhance our unique position in developing markets, we have so far this year invested around £60 million on acquisitions in Chile, Hong Kong, Guatemala, Mozambique, Democratic Republic of Congo, Indonesia, Saudi Arabia and United Arab Emirates. Acquisitions of this type will continue.

Dividend

The interim dividend of 1.69 pence (DKK 0.186) per share will be paid on 15 December 2006.