G4S provides the following update for the three months ended 31 March 2018.
G4S plc Trading Update
Unless stated otherwise, all figures and commentary relate to core businesses, are unaudited and stated at March 2018 exchange rates.
The Group’s trading for the first quarter is consistent with the outlook provided in March 2018.
New contract sales YTD were £500 million (2017 full year: £1.4 billion) annual contract value.
As expected, organic revenues were 2% lower than the first quarter in 2017 when we mobilised a very large retail solutions contract in North America. Following a major contract win in February 2018, the North America retail cash solutions business has continued to build a large sales pipeline and make significant progress with pilot programmes at major retailers, providing confidence in the business’ growth prospects.
Secure Solutions revenue growth reflected positive momentum in a number of key markets, partially offset by the year-on-year effect of the slowdown in Middle East and India in H2 2017. Our business in India is now growing and our business in the Middle East is beginning to stabilise.
During the first quarter the Group disposed of its business in Hungary and its data storage business in Kenya, and realised disposal proceeds of £32 million. These businesses were included in core businesses in 2017 and had combined revenues of £57 million and PBITA of £8 million.
Following the substantial strengthening of our credit metrics, on 24 April 2018, Standard & Poor’s affirmed the Group’s credit rating as BBB- and revised the outlook from negative to stable.
“The Group continued to make progress with its plans to deliver revenue growth and improved productivity. The emphasis on profitable growth and maintaining commercial discipline has been, and remains, important at a time when a number of markets in Europe and North America are at or approaching full employment. We expect growth to accelerate in the second half of 2018 as the strong first-half comparatives from Retail Cash Solutions roll off, our new contracts mobilise and our productivity programmes deliver benefits to the bottom line.”
For further enquiries, please contact:
Helen Parris, Director of Investor Relations +44 (0)208 7222125
Media enquiries:
Sophie McMillan, Head of Media +44 (0) 759 5523483
Press office +44 (0) 207 9633333
Supplementary information
Results for the six months to 30 June 2018 will be published on 9 August 2018.
As set out in the Group’s full year 2017 results announcement and 2017 Integrated Report and Accounts, with effect from 1 January 2018, to enable us to strengthen further our strategic, commercial and operational focus we reorganised the Group-wide management of our business through the creation of a Global Cash Solutions division and the consolidation of our Secure Solutions businesses into four regions: Americas, Europe & Middle East, Africa and Asia. Prior period results restated to reflect the Group’s new organisation structure will be available on the Group website by the end of June.
Helen Parris, Director of Investor Relations +44 (0)208 7222125
Media enquiries:
Sophie McMillan, Head of Media +44 (0) 759 5523483
Press office +44 (0) 207 9633333
Supplementary information
Results for the six months to 30 June 2018 will be published on 9 August 2018.
As set out in the Group’s full year 2017 results announcement and 2017 Integrated Report and Accounts, with effect from 1 January 2018, to enable us to strengthen further our strategic, commercial and operational focus we reorganised the Group-wide management of our business through the creation of a Global Cash Solutions division and the consolidation of our Secure Solutions businesses into four regions: Americas, Europe & Middle East, Africa and Asia. Prior period results restated to reflect the Group’s new organisation structure will be available on the Group website by the end of June.