Preliminary results announcement for the year ended 31 December 2012
|Turnover – total||£7,501m||+10.4%||£6,797m|
|Turnover - excluding Olympics*||£7,297m||+8.1%||£6,750m|
|PBITA***- excluding Olympics*||£516m||+6.0%||£487m|
|EPS attributable to equity shareholders of G4S plc ****||3.4p||12.9p|
|Recommended total dividend per share||8.96p||5%||8.53p|
* excluding Olympic and Paralympic Games contract revenue of £204m (2011:£47m) and PBITA of £nil (2011:£3m)
**at constant exchange rates and adjusted for discontinued businesses
*** PBITA is defined as profit before interest, taxation, amortisation of acquisition-related intangible assets, acquisition-related costs and exceptional items
**** this includes exceptional items of £88m related to the Olympic Games contract, £45m of restructuring costs and a £63m loss related to discontinued operations. For a full reconciliation please see p.23
Underlying sales up 8.1% and improved organic growth of c.7%. Adjusted EPS 21.2p (excluding the Olympic Games contract)
- Organic growth of 10% in developing markets with revenue of £2,387m (33% of group total and targeting 50% by 2019)
- Group PBITA margin of 7.1%
- Commenced new contracts of c.£200m annual value with the UK government in 2012
- Vanguarda, Brazil acquisition announced in September performing in line with expectations
- Olympic Games contract loss of £70m and related costs of £18m result in exceptional loss of £88m
- Following a strategic review, G4S’ US Government Solutions business classified as held for sale
- Achieved annual cash conversion of 95%, exceeding target of 85%
- Based on the positive organic growth outlook, the recommended full year dividend has been increased by 5% to 8.96p
Continued focus on business improvement
- Service excellence centres have been established for core services: manned security and cash solutions – part of a programme to support gross margins and profit improvement initiatives
- Restructuring led to £35m annualised savings, with related costs of £45m which have been taken as an exceptional item, a large proportion of which relates to Continental Europe and restructuring of the technology businesses in the Americas region
Security remains core to global strategy and continues to provide growth opportunities
- Strong global contract pipeline of £3.5bn per annum across a diverse range of sectors
Nick Buckles, Chief Executive Officer, commented:
Our 2012 financial results reflect the significant exceptional costs associated with the Olympic contract and our overhead reduction programme together with the large impairment charge related to the discontinued US Government Solutions business.
Despite these issues, the underlying business has performed well in 2012 with an acceleration in organic turnover growth to 7% and with margins holding at over 7%. The acceleration in organic growth was due largely to a number of new North American commercial and UK government contracts and continued strong growth in developing markets and was achieved despite continued economic challenges in Europe.
Our developing markets business now accounts for a third of group revenues and continues to grow strongly and our recent acquisitions in Brazil, Vanguarda and Interativa, are performing well.
The breadth of our portfolio in over 125 countries continues to present many new growth opportunities and we continue to see good opportunities for outsourcing in key sectors such as government, financial institutions, aviation, oil and gas, mining and ports. Our market leading businesses, broad customer base and £3.5bn per annum contract pipeline give us confidence in the outlook for the group.
Presentation of Results:
A presentation to investors and analysts took place in London.
View the presentation here.
View the transcript of today's presentation
To view or listen to a replay of the webcast, please see the details below:
Annual Report & Accounts
The company’s annual report and accounts is due to be published week commencing 15 April 2013
Capital Markets Day
G4S will hold a Capital Markets Day in London on 21 May 2013
Annual General Meeting
The company’s annual general meeting will be held in London on 6 June 2013