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2020 Half Year Results

G4S today announces its results for the six months ended 30 June 2020.
Employees in a risk operations centre

G4S Chief Executive Officer Ashley Almanza commented:

“G4S is at an important inflection point as we accelerate our transition to a highly focused global integrated security business. The benefits of our strategy, focused execution and timely response to Covid-19 are reflected in the Group’s results with resilient revenue, earnings and cash flows reported for the first six months.

Underlying revenuea was £3.35 billion (2019: £3.40 billion), underlying EPS was 6.3p per share (2019: 6.3p per share) and underlying operating cash flow was £364 million (2019: £164 million). The Group’s strategic focus and financial position were further strengthened by the sale of conventional cash businesses, now 76% complete, and financial leverage was significantly improved at 2.58x (2019: 2.90x). Further proceeds of approximately £135 million, from this disposal, are expected in the second half of this year.

Our investment in integrated, technology-enabled security solutions is providing our customers with valuable solutions to their security needs and this, together with the implementation of our productivity programme, has been instrumental in strengthening our competitive position and reinforcing the resilience of our Secure Solutions business. Our success in key markets and continued growth in technology-enabled revenues (up 5%) provides increasing confidence in the Group’s performance and prospects.

The path of the Covid-19 pandemic and its economic impact remain uncertain. In these circumstances, and notwithstanding the resilient performance of the Group in the first half of this year, the board has decided to prioritise the financial strength of the company in the near term whilst recognising the importance of resuming dividend payments in the future. The board has therefore concluded that the company will not pay an interim dividend for 2020. The board intends to resume dividend payments once the uncertainty surrounding the pandemic has reduced to an acceptable level.”

First half highlights (Underlying resultsa unless otherwise noted):

  • Secure Solutions: Revenue £3.1 billion (2019: £3.1 billion); Adjusted PBITA £202 million (2019: £199 million), growth in Americas and Asia offset the impact of Covid-19 in our Europe & Middle East markets and Adjusted PBITA margin rose +20bp to 6.5%
  • Cash Solutions: Revenue £0.22 billion (2019: £0.27 billion); Adjusted PBITA £16 million (2019: £24 million) reflecting the impact of Covid-19 in the UK. Restructuring being implemented
  • Adjusted PBITA of £187 million (2019: £196 million)
  • EPSd 6.3p per share (2019: 6.3p per share)
  • Operating cash flowe £364 million (2019: £164 million) including £152 million tax deferrals
  • Free cash flowf of £178 million (2019: free cash outflow of £51 million)
  • Net debt to Adjusted EBITDAc 2.58x (2019: 2.90x)
  • Productivity and restructuring: Direct and indirect cost savings of £100 million in 2020
  • Statutory earningsd of £167 million (2019: £59 million) includes gain on sale of conventional cash businesses and cost of Deferred Prosecution Agreement with UK Serious Fraud Office
  • Cash business disposal proceeds of £522 million and gain on sale of £171 million recognised to 30 June 2020.


Underlying Resultsa

Statutory Resultsb


In Constant Currency

Actual Rates















Adjusted PBITAc







Adjusted PBITAc margin














Earnings Per Shared







Operating Cash Flowe







Free Cash Flowf







a Underlying results are Alternative Performance Measures (“APMs”) as defined and explained on page 39 and, for both 2019 and 2020, exclude the results of businesses sold as part of the conventional cash disposal, the effect of onerous contracts and specific and other separately disclosed items. Underlying results are reconciled to statutory results on pages 4 and 44 and are presented at constant exchange rates other than operating cash flow, which is presented at actual rates in both 2019 and 2020. A reconciliation between the results as previously reported and the restated results above is included on page 45.
b Statutory results reflect the entire Group including the results of the businesses subject to the conventional cash disposal up to the date of completion. See page 26 for the basis of preparation of statutory results.
c Adjusted PBITA and net debt to Adjusted EBITDA are APMs as defined and explained on pages 40 and 42.
d Earnings is defined as profit attributable to equity shareholders of G4S plc. Underlying earnings and underlying earnings per share (“EPS”) are adjusted to exclude specific and other separately disclosed items, as described on page 39, and are reconciled to statutory earnings and EPS on page 4.
e Operating cash flow is defined on page 40 as net cash flow from operating activities of continuing operations and is stated after pension deficit contributions of £28 million (2019: £26 million). For the six months ended 30 June 2019 operating cash flow is presented at 2019 average exchange rates. Operating cash flow is reconciled to the Group’s movements in net debt on page 41. Statutory operating cash flow for 2019, originally stated as £189 million, has increased by £3 million to reflect an IFRS 16 adjustment identified when finalising the 2019 Integrated Report and Accounts.
f Free cash flow (“FCF”) is an APM as defined and explained on page 40.

Focus on growth of integrated security solutions

The sale of the majority of the Group’s conventional cash businesses to Brink’s enables G4S to focus on the growth of its core integrated security solutions business and the further development of the rapidly growing Retail Technology Solutions business, whilst also streamlining the Group to enhance agility and efficiency.

G4S is a global market leader in security, providing both established and new technology-enabled security solutions to customers around the world.

The shape of the Group, post the sale of the majority of the conventional cash businesses, is summarised in the table below, which sets out the proportion of Group revenue and PBITA margin achieved in H1 2020, along with the revenue growth potential in the medium term.

H1 2020

% of Group


H1 2020

PBITA Marginc

Revenue Growth Potential p.a.

Secure Solutions (excl. Risk Consulting and Security Technology Solutions)a




Risk Consulting and Security Technology Solutionsa




Total Secure Solutions




Retail Technology Solutionsb




Conventional Cash




a Integrated technology-enabled solutions combines two or more of: security officers, risk consulting, security technology, data analytics and intelligence elements of Secure Solutions and Risk Consulting and Security Technology Solutions and was 49% of total Secure Solutions revenues in H1 2020 (2019: 46%).

b Includes Retail Cash Solutions, SA-Deposita.

c   Adjusted PBITA margin before corporate cost allocations.

Revenue growth during the first half of 2020 was adversely impacted by the Covid-19 pandemic, particularly in our Europe & Middle East markets and our UK Cash Solutions business. Notwithstanding the impact of the pandemic, our Secure Solutions revenues held up well and PBITA increased by 1.5%, reflecting the growing success of our integrated security strategy and essential nature of the services we provide (see page 5).

Over the course of the economic cycle we expect security to continue to be a growth industry and we believe that G4S has the expertise and global footprint to grow Secure Solutions revenues in line with the growth rates indicated above. As at 30 June 2020, we had won and retained business with an annual contract value (“ACV”) of £1.4 billion (2019: £1.4 billion).

As a result of our investment in risk consulting and the integration of technology and data analytics into our security solutions, we are generating an increasing proportion of revenues from integrated, technology-enabled solutions.  In H1 2020 these integrated technology-enabled revenues grew by 5% and at the end of June 2020 represented around 49% (2019: 46%) of our Secure Solutions revenues.

Our growing focus on integrated technology-enabled solutions creates additional security and efficiency benefits for customers and increases our ability to differentiate G4S’s offering in the security market, which in turn supports our goal of accelerating profitable growth.

Of the retained cash businesses (7% of Group revenues), H1 performance in our industry-leading Retail Technology Solutions businesses was impacted by new contract win mobilisations being postponed from the second quarter of 2020 into the last six months of the year, driven by Covid-19. However margins were resilient, reflecting a greater proportion of recurring revenue. We have a substantial backlog of confirmed orders and are now working with customers to resume the installation of our technology solution.

Over the medium term, we aim to grow our Retail Technology Solutions business at 14-16% per annum and would look to achieve margins of 10-15%. G4S has also retained a number of conventional cash businesses, including the UK business, and these were more significantly impacted by the pandemic. As a result of restructuring and a gradual easing of lockdown we expect our conventional cash business performance to improve in the second half of 2020.


In response to the Covid-19 pandemic, we continue to reinforce health and safety measures for employees and customers, assure service delivery and protect the company’s financial performance, cash flow and financial position. In the midst of the pandemic, G4S staff all over the world have responded with extraordinary courage and resilience to keep vital services and workplaces safe, clean and secure.

In addition, in the short-run, we are assisting customers around the world with their Covid-19 return to work assurance programmes with an increased demand for thermal cameras, security systems integrated with healthcare applications, access control and screening personnel. Markets such as technology, healthcare, distribution centres and utilities are expected to maintain positive underlying demand.

We believe that the resilient performance of the Group reflects the essential nature of our services, the growing value to customers of our integrated security solutions, increasingly focused execution and the benefit of a diversified revenue base, by market and customer type.

The net financial cost of the pandemic in those countries where we received Covid-19 related government employment support is estimated to be around £20 million to £25 million arising from lost revenue, incremental safety and operating costs and the cost of continuous employment for staff whose roles would have otherwise been at risk, partially offset by government employment support.

This impact is reflected, in particular, in the lower profits in the Europe & Middle East region and the UK Cash Solutions business.

We have also taken proactive steps to restructure and reduce costs in a number of areas to address the sale of the conventional cash businesses and to respond to the impact of Covid-19, and expect to deliver total direct and indirect cost savings of £100 million in 2020, including the acceleration of previously announced programmes.


A charge of £50 million has been recognised in relation to the Deferred Prosecution Agreement entered into with the UK’s Serious Fraud Office (“SFO”) which was announced on 10 July 2020.

Resolving this long-standing matter brings certainty to G4S and allows us to focus on delivering innovative and valuable services to our customers in order to grow our business.

Dividend policy

The path of the pandemic and its economic impact remain uncertain. In these circumstances, and notwithstanding the resilient performance of the Group in the first half of this year, the board has decided to prioritise the financial strength of the company in the near term whilst recognising the importance of resuming dividend payments in the future. The board has therefore concluded that the company will not pay an interim dividend for 2020.

The company’s dividend policy remains unchanged. The board intends to resume dividend payments once the uncertainty surrounding the pandemic has reduced to an acceptable level and in line with its stated policy objectives of attaining dividend cover of 2.0x and a progressive dividend thereafter.


G4S Group Chief Executive Officer, Ashley Almanza, commented:

“The Group’s transition to a focused, global leader, delivering integrated security solutions, is accelerating. The benefits of G4S’s strategy and focused execution are beginning to be realised and in the first six months of this year the Group produced substantial revenues, profits and cash flows strengthening further our financial position.

G4S has an unrivalled market footprint, a well-diversified revenue base and pipeline, and growing capability in the delivery of integrated technology-enabled solutions. We believe that the Group is very well positioned to emerge from the pandemic as a leaner and more focused market leader in the global security market and to create material value for all stakeholders.”

Read the full announcement here (PDF 1757 KB)

Download the presentation here (PDF 1163.5 KB)

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Presentation of Results

G4S plc held a webcast of its’ 2020 Half Year Results on Thursday 23 July.

To view the webcast on demand, please paste the link below into your browser and follow the on-screen instructions. 


Financial Calendar:

November 2020 – Q3 2020 Trading update