G4S reports on Full Year financial results for 12 months to 31 December 2018

G4S has announced its Full Year financial results for the twelve months ended 31 December 2018. New contract wins total £1.4 billion (annual contract value), with Secure Solutions revenues growing by 3.1%. Cash Solutions revenues excluding Retail Cash Solutions rose by 0.5%. Operating cash flow conversion stands at 95.6% (2017: 106.6%).

G4S’ CEO Ashley Almanza commented: “Our Secure Solutions business delivered underlying revenue growth of 3% and profit margins rose from 6.2% to 6.5% reflecting the benefits of commercial discipline, growth in the sale of technology-enabled security and productivity gains. As expected, this was offset by the effect of challenging trading conditions in a number of Cash Solutions markets and a strong comparative performance in Retail Cash Solutions in 2017. Overall, the Group delivered underlying earnings in line with the previous year.”

Almanza went on to state: “Our sales wins in the second half of 2018 have underpinned a good start to the year and this, together with growing technology-enabled services in both our cash and security businesses, supports a positive outlook for 2019.”

During 2018, G4S continued to make substantial progress in a number of important areas. For example, the organisation continued to embed values that build a culture based on integrity, respect, safety, security, service, innovation and teamwork. Employee engagement surveys have shown positive identification with these values.

Ashley Almanza: CEO at G4S

Ashley Almanza: CEO at G4S

G4S’ Health and Safety goal is zero harm and the business has achieved a material reduction in serious incidents. It has also increased technology-enabled revenues to 45% of Secure Solutions, enhancing the customer proposition and reinforcing margins. Also, G4S has increased the deployment of cash technology to 23,300 customer locations (2017: 19,800) and implemented end-to-end IT systems for security guarding in the UK.

The business is on track to deliver £90 million-£100 million in cost savings by 2020 in order to support investment and margin improvement.

Almanza concluded: “We believe that the potential separation of the Cash Solutions business will provide G4S with the strategic, commercial and operational focus needed for the next stage of the successful development of both the Cash Solutions and Secure Solutions businesses.”

G4S Group: Financial results for 12 months ended 31 December 2018

Underlying Results Statutory Results
In Constant Currency Actual Rates
2018 2017 % 2018 2017 %
Restated Restated
Revenue £7,289 m £7,213 m +1.1 £7,512 m £7,826 m (4.0)
Adjusted PBITA £474 m £474 m £460 m £492 m (6.5)
Adjusted PBITA Margin 6.5% 6.6% 6.1% 6.3%
Earnings £259 m £258 m +0.4 £82 m £237 m (65.4)
Earnings Per Share 16.7 p 16.7 p 5.3 p 15.3 p (65.4)
Operating Cash Flow £453 m £516 m (12.2) £413 m £488 m (15.4)
About the Author
Brian Sims BA (Hons) Hon FSyI, Editor, Risk UK (Pro-Activ Publications) Beginning his career in professional journalism at The Builder Group in March 1992, Brian was appointed Editor of Security Management Today in November 2000 having spent eight years in engineering journalism across two titles: Building Services Journal and Light & Lighting. In 2005, Brian received the BSIA Chairman’s Award for Promoting The Security Industry and, a year later, the Skills for Security Special Award for an Outstanding Contribution to the Security Business Sector. In 2008, Brian was The Security Institute’s nomination for the Association of Security Consultants’ highly prestigious Imbert Prize and, in 2013, was a nominated finalist for the Institute's George van Schalkwyk Award. An Honorary Fellow of The Security Institute, Brian serves as a Judge for the BSIA’s Security Personnel of the Year Awards and the Securitas Good Customer Award. Between 2008 and 2014, Brian pioneered the use of digital media across the security sector, including webinars and Audio Shows. Brian’s actively involved in 50-plus security groups on LinkedIn and hosts the popular Risk UK Twitter site. Brian is a frequent speaker on the conference circuit. He has organised and chaired conference programmes for both IFSEC International and ASIS International and has been published in the national media. Brian was appointed Editor of Risk UK at Pro-Activ Publications in July 2014 and as Editor of The Paper (Pro-Activ Publications' dedicated business newspaper for security professionals) in September 2015. Brian was appointed Editor of Risk Xtra at Pro-Activ Publications in May 2018.

Related Posts