Interim Management Statement Q1 2009
G4S, the international security solutions group, will be updating analysts and investors today on trading for the year to date, including an overview of financial performance to 31 March 2009.
In the first quarter of 2009 overall revenues grew 36% at actual exchange rates compared to the same period last year and by 18% at constant exchange rates. Operating profits were up 48% at actual rates and up 24% at constant rates. The group operating margin improved by 0.4% at actual rates and by 0.3% at constant rates.
Management will be indicating that there have been no material changes in trading performance or market conditions across the various G4S businesses since the preliminary results announcement in March.
An overview of the financial performance for the three months to 31 March 2009 is as follows:
Overall organic growth was 6% with around 3.5% in developed markets and around 13.5% in New Markets.
- In secure solutions, organic growth was 5% as a result of lower growth in Europe and North America commercial services, offset by a continued strong performance in government and New Markets
- Cash solutions continued to deliver strong organic growth at around 10%.
Overall margins were ahead by 0.3% (at constant exchange rates) on the same period last year.
- Secure solutions margins were up strongly in developed markets due to an increased focus on costs, stronger growth in higher margin businesses and the benefit of cost synergies coming through from acquisitions made last year. Overall margins in New Markets improved with a very strong performance in Africa and the Middle East
- In cash solutions, trading continued to be strong with margins broadly unchanged.
Acquisitions & Divestments
Acquisitions for the year to date include SecuraMonde, a banknote and high security printing specialist, based in the UK and Sunshine Youth Services, a provider of outsourced juvenile justice services, based in the US. The total amount invested in acquisitions and buy-outs of minority interests for the year to date is approximately £36 million. These capability-building acquisitions will support the delivery of the accelerated growth strategy for the group.
Despite the fact that some of our businesses are facing tough market conditions, we have had a strong start to the year. We remain confident that we can deliver a strong performance in 2009 whilst continuing to put in place essential building blocks for future growth.
Capital Markets Day
On 19 May, G4S will be holding a Capital Markets Day in London for analysts and investors.
AGM & Dividend
The AGM will take place on 26 May 2009 and the final dividend of 3.68 pence (DKK 0.3052) per share is proposed for payment on 5 June 2009.