G4S Trading Update
This Interim Management Statement has been prepared following the adoption of IFRS10/11/12 effective 1 January 2014.
All figures are stated at, and all commentary refers to, constant exchange rates.
Financial performance for the three months to 31 March was in line with our plans. Revenues, compared to the same three month period last year grew by 4.8%, with organic growth of 5.0%. We continued to invest in organic growth and our wider programme of corporate transformation and underlying profit before interest, tax and amortisation (PBITA) and earnings were slightly higher than the same period of 2013.
Emerging markets organic revenue growth was 16% with double-digit growth across all emerging markets regions. Developed markets’ revenue was flat compared with 2013.
The group had a positive start to the year winning new business with annual revenues of over
£440 million. Major contract wins include retail and services customers in the US, retail customers in Brazil, port security consultancy in the Middle East, cash solutions contracts in the Netherlands and significant new business with the UK Government.
In April, the UK Government gave a positive assessment of the group’s Corporate Renewal Plan in the UK which forms part of the group’s wider corporate transformation programme
The group continues to have a strong financial position, with S&P recently confirming its investment grade credit rating at BBB- (Stable).
Commenting on current trading and outlook, Ashley Almanza, CEO said “Our trading performance is in line with our plans, reflecting strong growth in emerging markets and satisfactory performance in developed markets.
We continue to implement a group-wide transformation programme which is focused on embedding our group values, restructuring key businesses and investing in organic growth, technology, innovation and cost leadership and which supports our long term objectives of delivering sustainable growth in earnings, cash flow and dividend.”
G4S held an investor conference call on 7 May for analysts and investors.
View the transcript of the webcast/conference call here
AGM & Dividend
The AGM will take place on 5 June 2014 and the final dividend of 5.54 pence (DKK 0.4954) per share is proposed for payment on 13 June 2014.
Half year results
Results for the six months to 30 June 2014 will be published on 13 August 2014.