Continued resilient trading and contract win performance for the first nine months of 2020
G4S plc (“G4S” or the “Group”) provides the following update for the nine months ended 30 September 2020.
Unless stated otherwise, all figures and commentary relate to underlying results, are unaudited and stated at average exchange rates for the nine months to end September 2020. All comparisons are with the first nine months of 2019 unless otherwise stated and are presented on a pro-forma basis that excludes all conventional cash businesses sold to The Brink’s Corporation on 26 February 2020.
The Group’s revenues have remained resilient through the first nine months of the year. Secure Solutions revenues, which account for 93% of Group revenues, remain broadly in line with 2019. Group revenues were just 2% lower overall and this was more than offset by tight direct and indirect cost control and reduced interest costs, the latter reflecting both refinancing benefits and the Group’s improving net debt position. As a result, the Group’s underlying earnings remain ahead of the prior year for the first nine months of 2020. Although the global economic outlook remains uncertain, the Group’s performance in the first nine months demonstrates the strength of the business.
In the first nine months of 2020, G4S has retained and won new contracts with an annual revenue contract value of £2 billion, including the recently announced ten year, £30 million per annum contract to deliver custody and rehabilitation services at HMP Five Wells in the UK.
Since the end of the third quarter, G4S Retail Cash Solutions has commenced the roll out of our industry leading software-and-service solution to a new customer in the United States, one of the largest big-box retailers in the world. This significant new programme is expected to continue through 2021.
Commenting on the first nine months trading, G4S Group Chief Executive Officer, Ashley Almanza said: “G4S today is a focused global business delivering integrated security solutions which combine our risk consulting, security, technology and data analytics capabilities. The benefits of our strategy, strong execution and rapid response to Covid-19 continue to be reflected in the Group’s results during 2020 with resilient revenue, earnings and cash flow.
I would like to thank our customers and employees for their commitment to G4S during these challenging times”.
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Rule 26.1 Disclosure
In accordance with Rule 26.1 of the Takeover Code, a copy of this announcement will be available at www.G4S.com, by no later than 12 noon (London time) on the business day following this announcement. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.
Notes to Editors:
G4S is the leading global 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 85 countries and has 533,000 employees. For more information on G4S, visit www.g4s.com.