G4S - Investment Case
We have been investing in technology, software and systems. The Group’s technology-related security revenues were £2.8 billion* in 2018 (2017: £2.45 billion).
We believe that G4S has considerable competitive advantage in our increasingly connected world. G4S possesses the scale, resources and capabilities necessary to develop and deliver the innovative solutions needed by our customers, and our unique global market positions enable us to offer this to customers on a consistent basis across the globe.
Customers and Service Excellence
We build long-term customer relationships based upon trust and understanding of our customers’ businesses and objectives. Through those customer relationships and connections we look to deliver sustainable long-term growth in revenues, earnings and cash flow.
Positive demand for security services
We believe that the long-term demand trends for our services remain positive, and we expect to grow revenues on average by around 4% to 6% per annum over the medium term. We continue to sustain contract retention rates of around 90%, have won substantial new business, and have more than replenished our sales pipeline with an improved quality of opportunities over the next two years.
Cash Seperation Options
The Group is reviewing separation options for the Global Cash Division. We believe that a separation has the clear potential to enhance the focus and success of both the Secure Solutions and the Cash Solutions businesses and to unlock substantial shareholder value.”
In April 2018, Standard & Poor’s affirmed the G4S plc long-term credit rating at BBB-, and revised the outlook to stable on improving performance.