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Interim Management Statement

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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 30 September 2009.

There have been no material changes in trading performance, financial position or market conditions across the various G4S businesses since the half yearly results announcement for the six months to June 2009. Trends from the first half continued into the third quarter, including slightly slower growth in developed markets’ commercial security services, offset by continued strong performances in government and new markets. The improvement in the operating margin achieved at the half year was maintained.

An overview of the financial performance for the nine months to 30 September 2009 is as follows:

In the first nine months of 2009 overall revenues grew by 23% at actual exchange rates compared to the same period last year and by 9% at constant exchange rates. Operating profits were up 25% at actual rates and up 12% at constant rates. The group operating margin improved by 0.1% at actual rates and by 0.2% at constant rates.

Organic Growth

Overall organic growth was 4.2%, despite a lower inflation environment, with around 1.6% in developed markets and 12.3% in new markets.

  • In secure solutions, organic growth was 3.8% 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 5.9%.


Overall margins were ahead by 0.2% (at constant exchange rates) on the same period last year.

  • Secure solutions margins were up by 0.1%. Margins in new markets were up 0.3% with strong performances in the Middle East and Africa.
  • In cash solutions, trading continued to be strong with margins up 0.7% on the prior year helped by improved profitability in Europe and North America.

Acquisitions & Divestments

No significant acquisitions have been made since the half year. G4S invested a total of approximately £54.8m on acquisitions during the first half of the year. Of this, £19.7m was invested in capability building acquisitions such as a juvenile justice business in the US and SecuraMonde, a global cash management consultancy based in the UK. G4S also purchased minority interests for a total of £33.5m and paid a further £1.6m in deferred consideration from previous acquisitions. The disposal of the French security business was also completed in the first half of 2009.

Financial position

Our financial position continues to be strong and we have current headroom from committed funds of more than £550 million. Cash flow also remains strong and we are on track to hit our cash conversion target of 85% of PBITA for the full year.


Our businesses have continued to perform well despite facing challenging market conditions. In the first nine months of 2009 the group has achieved robust organic growth and margin improvement and we remain confident that we can deliver a strong performance in 2009 and into 2010.