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Strategic Targets
In 2007, we have proven our ability to deliver on our promises, with organic growth of 9.1% (more than 2% ahead of target), PBITA margins at 7% (18 months ahead of schedule) and cash generation ahead of target at 89%.
Driving accelerated growth and development
There is a growing trend of pricing pressure in core basic services and a demand from customers for G4S to take a broader role in managing their risks.The basic element of our strategy is to add value to the core services that we already provide by taking a greater role not just in specialist security areas, but in total outsourcing of the management of environments where security and safety is key.
By doing this G4S becomes a partner with its customers and takes greater responsibility for managing entire aspects of their business which are not core to them, and where G4S can add value through its security and segment expertise.
For example:
- High security facility outsourcing in key sectors
- Cash cycle management
- ATM network management and servicing
- Risk management and consultancy
- Prison design and management
- Offender management programmes
Strategy Implementation Principles
Security remains at the core of our offer – it is an area in which we have an extensive amount of expertise across the group and is fundamental to our service proposition. However, in order to drive growth forward at an accelerated level, we will build on the solid foundation that we have created in this area.
We will add “intelligence” to our businesses in key areas such as risk assessment and consulting and we will add bid capability and project management skills to our core competencies.
We will focus on creating customer propositions tailored for specific industry sectors which demonstrate G4S expertise in these areas.
At the same time, we will build relationships at a senior level within our customer organisations and ultimately gain a larger share of customer commitment and spend on secure outsourcing solutions.
Current Capability
A number of our businesses already provide complete outsourced security solutions to our customers where they take total responsibility for managing risk and increasing efficiency – it is important to spread this experience more widely across the group.We estimate that this type of contract represents around 30% of group revenues and we will seek to extend this over time.
In cases where we do not have the appropriate expertise within the group, we will seek to obtain it either by acquiring businesses or by attracting key experts to the group.
Whilst we will seek to develop all businesses in line with the strategy, we will focus initially on a few key markets – US, UK, Benelux, South Africa and India.
The group does not intend to stand still. As we have indicated, we intend to implement this strategy which will bring us closer to our customers and which will involve the provision of more complex solutions to a wider spectrum of customers under longer term agreements.
