This morning, G4S has issued a report on trading for the year to date and provided an overview of financial performance for the three months ending 31 March 2014.
Financial performance for the three months to 31 March is in line with the company’s plans. Compared to the same three-month period for 2013, revenues have grown by 4.8% with organic growth at 5.0%.
The company has continued to invest in organic growth, and its wider programme of corporate transformation and underlying profit before interest, tax and amortisation (PBITA) and earnings are slightly higher than for the same period last year.
Emerging markets organic revenue growth was 16% with double-digit growth across all emerging markets regions. Developed markets’ revenue was flat compared with 2013.
Positive start to the New Year
The group enjoyed a positive start to the New Year, winning new business with annual revenues of over
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 at G4S) said: “Our trading performance is in line with our plans, reflecting strong growth in emerging markets and satisfactory performance in developed markets.”
Almanza continued: “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.”
*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