G4S Preliminary results for the year ended 31 December 2011

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G4S has announced a seventh consecutive year of underlying revenue, PBITA and dividend growth in its preliminary results for the full year January to December 2011

Broadly Risks

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Developing markets and outsourcing trends continuing to drive growth
2011 2010 Change
Turnover £7,522m £7,181m* +4.7%
Organic growth +4.5% +2.1% –
PBITA £531m £520m* +2.1%
Operating margin 7.1% 7.2%* –
Adjusted EPS 22.8p 21.6p* +6%
Recommended total dividend per share 8.53p 7.90p +8%

* at constant exchange rates and adjusted for discontinued businesses

Sales up 4.7% (with 4.5% organic growth) to £7,522 million. Adjusted EPS up 6% to 22.8p

* Developing markets revenue of £2.2bn (30% of group total and targeting 50% by 2019) with organic growth of 9%
* Achieved cash conversion target of 85%

Security remains core to our global strategy and continues to provide growth opportunities

* G4S has a proven track record in delivering strong performances in security across a number of customer sectors, particularly where security and safety risks are a strategic threat
* Increasing trend from government and commercial customers to outsource, reshape and embrace innovative, cost reducing, integrated security solutions
* Will take advantage of trends for integrated facilities services in suitable markets – for example the UK government sector
* In large developing markets we will expand beyond security where the market opportunity is large and there is significant growth potential – for example, Brazil, India and China

Small/medium sized acquisitions a key component to deliver strategic objectives

* Expected acquisition spend of around £200m in 2012 with focus on developing markets

Continued focus on business improvement

* Establishment of service excellence centres for all core services – manned security, cash solutions and care & justice services
* Continued investment in sales and business development processes to continue to drive growth
* Cash solutions division (comprising seven cash solutions businesses) now integrated into the regional structure
* More active divestment planned of non-core or under-performing businesses
* Overhead review to ensure organisational design is aligned to strategy and economic environment

Nick Buckles, Chief Executive Officer, commented:

“Today we have announced our seventh consecutive year of underlying revenue, PBITA and dividend growth since G4S was formed in 2004. The business has performed well despite continued global economic uncertainty and has good trading momentum. We have delivered further strong organic growth of 9% in developing markets (30% of revenue and 34% of PBITA).

“Looking forward, we are encouraged by the performance and outlook for our US commercial and the UK government and commercial businesses. However, the outlook for our developed markets cash solutions and Continental European secure solutions businesses remains muted and we continue to focus on cost base control. More generally, we won and mobilised a number of significant contracts in 2011 and expect outsourcing trends to continue. Overall, we are confident about the outlook for 2012 when we expect to deliver organic revenue growth higher than 2011 together with the additional contribution from the London 2012 Olympic and Paralympic Games contract. This confidence is underlined by the 8% increase in our dividend.”

Download the full G4S Preliminary Results for January-December 2011 Announcement

Presentation of Results:

A presentation to investors and analysts is taking place today at 0830hrs at the London Stock Exchange.



Telephone Dial-in Facility

The details for the telephone dial-in facility are as follows:-

Standard International Access: +44 (0) 20 3003 2666
UK Toll Free: 0808 109 0700
USA Toll Free: 1 866 966 5335
DK Toll Free: 8088 8649

Password: G4S

Replay Details

To listen to a replay of the presentation which will be available for 7 days after the event, here are the details:

Standard International Access: +44 (0) 20 8196 1998
UK Toll Free: 0800 633 8453
USA Toll Free: 1 866 583 1035
DK Toll Free: 8088 7109

Access PIN: 6212562

Annual Report & Accounts

The company’s annual report and accounts is due to be published week commencing 16 April 2012

Capital Markets Day

G4S will hold a Capital Markets Day in London on 22 May 2012

Annual General Meeting

The company’s annual general meeting will be held in London on 7 June 2012

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