G4S plc: Results for the six months ended 30 June 2018

8/9/2018, 8:00 AM (Source: GlobeNewswire)

9 August 2018
G4S plc
Results for the six months ended 30 June 2018

G4S Chief Executive Officer Ashley Almanza commented:
"As anticipated, the Group delivered a marked improvement in revenue generation in the second quarter, with organic growth of 2.8% resulting in half year organic growth of 0.2% against demanding comparatives".

"Our contract wins and strong retention rate in the first half of 2018 provide revenue momentum into the second half of the year. This, together with growing technology-enabled services in both our cash and security businesses, a favourable sales mix and planned productivity benefits, underpins the Group's positive outlook for the full year".

First half highlights (Underlying resultsa unless otherwise noted):

  • Step change in revenue growth in second quarter
  • New contract wins of £0.7 billion (annual contract value)
  • Secure Solutions margin 5.9% (2017: 5.9%); service mix and productivity offset wage inflation
  • Cash Solutions margin 10.7% (2017: 11.0%); reflecting increased business development and operating costs
  • Operating cash flow conversion 84% (2017: 80%), in line with seasonal norm
  • Net debt to EBITDAb 2.7x (30 June 2017: 2.7x)
  • EPSa,c 7.4p (2017: 7.4p);  Interim dividend: 3.59p per share (2017: 3.59p)
  • Statutory results reflect businesses sold and exchange rate movements - see page 9

Full year outlook

  • First half contract wins and strong retention rate provide second half momentum
  • Technology-enabled services, favourable sales mix and productivity benefits underpin full year outlook
  • Expect net debt to EBITDAb =<2.5x FY18

Group results - first half

  Underlying Resultsa Statutory Resultsd
  In Constant Currency Actual Rates
  2018 2017 % 2018 2017 %
    Restatede     Restatede  
Revenue £3,599m £3,591m +0.2 £3,672m £3,971m (7.5)
Adjusted PBITAb £212m £219m (3.2) £213m £238m (10.5)
Adjusted PBITAb margin 5.9% 6.1%   5.8% 6.0%  
Earningsc £115m £115m - £103m £151m (31.8)
Earnings Per Sharec 7.4p 7.4p - 6.7p 9.8p (31.6)
Operating Cash Flow £179m £183m (2.2) £165m £170m (2.9)

 a Underlying results are Alternative Performance Measures as defined and explained on page 36.  They are reconciled to the Group's statutory results on page 4. The underlying results are presented at constant exchange rates other than for operating cash flow where operating cash flow for 2017 is presented at 2017 actual rates.
 b Adjusted PBITA and net debt to adjusted EBITDA are Alternative Performance Measures as defined and explained on page 36.  The Net debt to adjusted EBITDA ratio is calculated as set out on page 39.
 c 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 37, and are reconciled to statutory earnings and EPS on page 4.
d  See page 21 for the basis of preparation of statutory results.
e  Restated for the adoption of IFRS15 - Revenue from Contracts with Customers, see note 3.

This announcement contains inside information.


This release is an extract from the full report, which is attached to this release and is also available on www.g4s.com.
Page and note references in the text above refer to page numbers and notes in the full Report

This announcement contains inside information and the person responsible for making this announcement is Celine Barroche, company secretary

For further enquiries, please contact:

Helen Parris Director of Investor Relations +44 (0) 208 7222125

Media enquiries:

Sophie McMillan Head of Media +44 (0) 759 5523483
Press office   +44 (0) 207 9633333

High resolution images and b-roll are available to download from the G4S media library, available through the results centre at www.g4s.com.

Notes to Editors:
G4S is the leading global, integrated security company, specialising in the provision of security services and solutions to customers. Our mission is to create material, sustainable value for our customers and shareholders by being the supply partner of choice in all our markets.

G4S is quoted on the London Stock Exchange and has a secondary stock exchange listing in Copenhagen. G4S is active in around 90 countries and has over 560,000 employees. For more information on G4S, visit www.g4s.com.

Presentation of Results:

A presentation to investors and analysts is taking place today at 09.00 hrs at the London Stock Exchange.

The presentation can also be viewed by webcast using the following link:
http://view-w.tv/707-803-18618/en

Please note there will be a telephone dial-in facility for this event, the call details are below:

Standard International Access: +44 (0) 20 3003 2666
UK Toll Free: 0808 109 0700
Copenhagen: +45 3272 9273
Denmark Toll Free: 8088 8649
New York: +1 646 843 4608
USA Toll Free: 1 866 966 5335

Password: G4S




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Source: G4S plc DK via Globenewswire

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