Interim Management Statement
Management will be indicating that although there have been no material changes in trading performance or market conditions across our various businesses since the preliminary results announcement in March, underlying performance is now running slightly ahead of overall management expectations, aided in part by a small benefit from recent euro strength.
An overview of the financial performance for the three months to 31 March 2008 is as follows:
Overall organic growth improved strongly to 11% with around 9% in developed markets and around 17% in New Markets.
In security services, organic growth remained strong as a result of improved performances from Continental Europe and North America and continued good progress elsewhere.
Cash services continued to deliver excellent organic growth with strong performances across both developed and New Markets.
Overall margins were ahead by 0.1% on the same period last year.
Security services margins were broadly unchanged with improved performances from some markets offset by contract start-up costs in the US and Scandinavia.
In cash services, trading continued to be strong, with margin improvements being driven mainly by our businesses in Europe.
Acquisitions & Divestments
In May, G4S completed the acquisitions of GSL and ArmorGroup International plc. Other acquisitions for the year to date include businesses based in Greece, UK and USA and the buy-out of minority interests in businesses in the Baltic States and Macau. The total amount invested in acquisitions for the year to date is approximately £520 million. These acquisitions will play integral roles in delivering the new strategy which will drive accelerated growth and development for the group. Based on the strong pipeline of potential acquisitions, we will continue to acquire capability-building businesses to aid our strategic development in addition to a continued focus on organic growth.
Based on the strong underlying performance described above and indications of current trading, we remain very confident in the performance of the group for 2008.
AGM & Dividend
The AGM will take place on 29 May 2008 and the final dividend of 2.85 pence (DKK 0.279) per share is proposed for payment on 6 June 2008