Home Guarding G4S publishes full set of financials for 12-month period ending 31 December 2017

G4S publishes full set of financials for 12-month period ending 31 December 2017

by Brian Sims

The G4S Group has announced its Full Year Results for the 12 months ending 31 December 2017. Revenue stands at £7.4 billion, which is up from £7.1 billion in 2016. PBITA is £496 million, with Earnings Per Share at 17.9 pence. Ashley Almanza, CEO at the G4S Group, stated: “G4S has delivered another year of profitable growth and good cash generation, enabling us to invest in our growth, technology and productivity programmes and, at the same time, strengthen our balance sheet.”

Operational and financial highlights for core businesses include strong growth in technology-related security revenues (+11.4%), a growing deployment of cash solutions technology (19,500 locations, +30%), disciplined growth reflected in improving margins of 6.7% (versus 6.6% in 2016) and productivity gains on track at £90 million to £100 million by 2020.

Operating cash conversion is 106%. The corresponding figure in 2016 was 133%.

Almanza added: “The outlook for the Group is positive. Our strong market positions, commercial discipline, growing technology-related revenues, positive cash generation and ongoing productivity programmes provide substantial confidence that we’re well-positioned to deliver a strong performance over the next three years.”

G4S is an integrated global security company specialising in the provision of security services and solutions to myriad customers. Its mission is to create material and sustainable value for those customers and shareholders by dint of being the supply partner of choice in all of its markets.

G4S is quoted on the London Stock Exchange and has a secondary Stock Exchange listing in Copenhagen. The business is active in around 90 countries and employs 570,000 members of staff.

Ashley Almanza: CEO at G4S

Ashley Almanza: CEO at G4S

Since 2013, revenues from core businesses have grown by 17% and adjusted earnings per share by 48%. The Group has delivered operating cash flow of £2.5 billion. The Group’s strong cash flow has enabled it to invest in growth, pay dividends of more than £700 million and, at the same time, strengthen its financial position, in turn reducing net debt to adjusted EBITDA to 2.4x come the end of 2017.

To realise its potential, G4S is investing in sales, technology and new products, services and solutions to support the overriding aim of growing revenues from core businesses by an average of 4% to 6% per annum. The company is also investing in restructuring and efficiency programmes in order to deliver recurring operating gains of £70 million to £80 million by 2020 through efficient organisational design and leaner processes.

Additional re-financing gains of around £20 million are also anticipated by 2020. A portion of these gains will be re-invested in growth, with the majority expected to benefit the bottom line.

The Group’s Secure Solutions businesses faced challenging trading conditions in the Middle East and India region in 2017. This partially offset the good rates of profitable growth in other markets. Overall, the Secure Solutions businesses delivered 3.4% growth in revenue and 2.9% growth in adjusted PBITA.

*Download the 2017 Full Year Results for G4S

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