G4S continues upwards growth

9 November 2009

Security group G4S predicts a strong financial year-end based on a 12 per cent rise in operating profits in the first nine months of 2009.

Revenues were up 9 per cent, at constant exchange rates, in the period to the end of September, an interim trading statement said. Margins rose by 0.2 per cent at the one of the world’s largest security providers.

No significant global acquisitions have been made since the half-year.

However, G4S invested nearly £55m on acquisitions during the first half of the year. Of this, around £20m was invested in capability-building acquisitions such as a juvenile justice business in the US and SecuraMonde, a global cash-management consultancy based in the UK.

G4S also purchased minority interests for a total of £33.5m and paid a further £1.6m in deferred consideration from previous acquisitions. The disposal of the French security business was also completed in the first half of 2009.

Cash flow also remains strong and G4S said it is on track to hit their cash-conversion target of 85 per cent of PBITA (profit before interest, tax and amortisation) for the full year.

“In the first nine months of 2009 the group has achieved robust organic growth and margin improvement and we remain confident that we can deliver a strong performance in 2009 and into 2010.”

G4S is the largest employer quoted on the London Stock Exchange, with 585,000 staff in more than 110 countries.