16 June 2020
G4S presents 2019 segmental results reflecting the restatement for recent business disposals and foreign exchange rates
Ahead of the announcement on 12 August 2020 of its half-year results to 30 June 2020, to aid comparison with the results of prior periods, a summary of the Group’s results for HY 2019 and FY 2019, based on alternative performance measures, reflecting businesses sold, and presented at average exchange rates for the five months ended 31 May 2020, is set out below:
| £m | HY 2019 | FY 2019 | ||||
| Revenue | Adjusted PBITA | EPS | Revenue | Adjusted PBITA | EPS | |
| Underlying results as previously reported | 3,747 | 234 | 7.7 | 7,672 | 501 | 17.0 |
| Business disposals1 | (305) | (38) | (1.4) | (625) | (82) | (3.2) |
| Underlying results at actual exchange rates | 3,442 | 196 | 6.3 | 7,047 | 419 | 13.8 |
| Exchange differences | (50) | (1) | - | (137) | (6) | (0.2) |
| Underlying results at May 2020 exchange rates | 3,392 | 195 | 6.3 | 6,910 | 413 | 13.6 |
1 Business disposals include the businesses sold to The Brink’s Company (“Brink’s”) as part of the sale of the majority of the conventional cash businesses announced on 26 February 2020, including those disposals which have not yet completed, as well as two other minor businesses closed.
Reconciliations from the segmental and total Group results as previously reported, are set out at the end of this announcement.
For further enquiries, please contact:
Helen Parris Director of Investor Relations +44 (0) 208 7222125
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Sophie McMillan Head of Media +44 (0) 759 5523483
Notes to Editors:
G4S is the world’s leading global, integrated 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. After taking account of the businesses being sold in the year, G4S is active in around 85 countries and has around 533,000 employees. For more information on G4S, visit www.g4s.com.
Statutory accounts:
This Statement is not the Group’s statutory accounts and should be read in conjunction with the Integrated Report and Accounts 2019, which is available at www.g4s.com. The Integrated Report and Accounts 2019 was reported on by the company’s auditor. The report of the auditor was (i) unqualified, (ii) did not contain a reference to any matters to which the auditor drew attention by emphasis of matter without qualifying their report, and (iii) did not contain any statement under section 498 (2) or (3) of the Companies Act 2006.
Reconciliation from segmental and total Group results for the six months ended 30 June 2019 as previously reported
| Underlying results at actual exchange rates (at HY 2019) | Businesses sold and completed or closed since HY 2019 (a) | Businesses sold since HY 2019 but not yet completed (a) | Restated underlying results at actual exchange rates (at May 2020) | Exchange differences | Underlying results at May 2020 exchange rates | |
| Revenue - £m | ||||||
| Africa | 211 | - | - | 211 | (11) | 200 |
| Americas | 1,309 | (6) | - | 1,303 | (22) | 1,281 |
| Asia | 453 | (11) | - | 442 | (7) | 435 |
| Europe & Middle East | 1,239 | (14) | (12) | 1,213 | (3) | 1,210 |
| Cash Solutions | 535 | (230) | (32) | 273 | (7) | 266 |
| Total Underlying | 3,747 | (261) | (44) | 3,442 | (50) | 3,392 |
| Adjusted PBITA (b) - £m | ||||||
| Africa | 17 | - | - | 17 | (1) | 16 |
| Americas | 61 | - | - | 61 | 1 | 62 |
| Asia | 31 | - | - | 31 | (1) | 30 |
| Europe & Middle East | 92 | - | (2) | 90 | - | 90 |
| Cash Solutions | 60 | (31) | (5) | 24 | - | 24 |
| Total before corporate costs | 261 | (31) | (7) | 223 | (1) | 222 |
| Corporate costs | (27) | - | (27) | - | (27) | |
| Total Underlying | 234 | (31) | (7) | 196 | (1) | 195 |
| Underlying results at actual exchange rates1 (at HY 2019) | Businesses sold and completed or closed since HY 2019 (a) | Businesses sold since HY 2019 but not yet completed (a) | Restated underlying results at actual exchange rates (at May 2020) | Exchange differences | Underlying results at May 2020 exchange rates | |
| Other financial KPIs - £m | ||||||
| Profit before tax | 175 | (29) | (5) | 141 | (1) | 140 |
| Profit after tax | 129 | (21) | (4) | 104 | (1) | 103 |
| Earnings | 119 | (20) | (2) | 97 | - | 97 |
| Earnings per share - p | 7.7 | (1.3) | (0.1) | 6.3 | - | 6.3 |
| Operating cash flow1 | 209 | (36) | (9) | 164 | - | 164 |
1 Underlying operating cash flow as originally stated of £206m has increased by £3m to reflect an IFRS 16 adjustment identified when finalising the 2019 Integrated Report and Accounts.
Reconciliation to statutory results - £m
| Restated underlying results at actual exchange rates (at May 2020) | Disposed businesses (including disposals not yet completed (a) | Onerous contracts | Restructuring and separation | Specific and other separately disclosed items | Statutory results at actual exchange rates | Exchange differences | Statutory results at May 2020 exchange rates | |
| Revenue | 3,442 | 305 | 60 | 3,807 | (53) | 3,754 | ||
| Adjusted PBITA | 196 | 38 | - | 234 | (1) | 233 | ||
| Profit before tax | 141 | 34 | 9 | (36) | (40) | 108 | 8 | 116 |
| Profit after tax | 104 | 25 | 7 | (29) | (38) | 69 | 8 | 77 |
| Earnings | 97 | 22 | 7 | (29) | (38) | 59 | 8 | 67 |
| Earnings per share - p | 6.3 | 1.4 | 0.5 | (1.9) | (2.5) | 3.8 | 0.5 | 4.3 |
| Operating cash flow | 164 | 47 | (1) | (18) | - | 192 | - | 192 |
Reconciliation from segmental and total Group results for the year ended 31 December 2019 as previously reported
| Underlying results at actual exchange rates (at FY 2019) | Businesses sold and completed or closed since FY 2019 (a) | Businesses sold since FY 2019 but not yet completed (a) | Restated underlying results at actual exchange rates (at May 2020) | Exchange differences | Underlying results at May 2020 exchange rates | |
| Revenue - £m | ||||||
| Africa | 425 | - | - | 425 | (24) | 401 |
| Americas | 2,703 | (9) | - | 2,694 | (55) | 2,639 |
| Asia | 940 | (24) | - | 916 | (25) | 891 |
| Europe & Middle East | 2,504 | (26) | (25) | 2,453 | (16) | 2,437 |
| Cash Solutions | 1,100 | (477) | (64) | 559 | (17) | 542 |
| Total Underlying | 7,672 | (536) | (89) | 7,047 | (137) | 6,910 |
| Adjusted PBITA (b) - £m | ||||||
| Africa | 30 | - | - | 30 | (2) | 28 |
| Americas | 136 | - | - | 136 | - | 136 |
| Asia | 70 | (1) | - | 69 | (2) | 67 |
| Europe & Middle East | 179 | - | (4) | 175 | (1) | 174 |
| Cash Solutions | 134 | (65) | (12) | 57 | (1) | 56 |
| Total before corporate costs | 549 | (66) | (16) | 467 | (6) | 461 |
| Corporate costs | (48) | - | - | (48) | - | (48) |
| Total Underlying | 501 | (66) | (16) | 419 | (6) | 413 |
| Underlying results at actual exchange rates (at FY 2019) | Businesses sold and completed or closed since FY 2019 (a) | Businesses sold since FY 2019 but not yet completed (a) | Restated underlying results at actual exchange rates (at May 2020) | Exchange differences | Underlying results at May 2020 exchange rates | |
| Other financial KPIs - £m | ||||||
| Profit before tax | 383 | (64) | (12) | 307 | (4) | 303 |
| Profit after tax | 280 | (47) | (9) | 224 | (3) | 221 |
| Earnings | 263 | (44) | (6) | 213 | (3) | 210 |
| Earnings per share - p | 17.0 | (2.8) | (0.4) | 13.8 | (0.2) | 13.6 |
| Operating cash flow | 633 | (95) | (24) | 514 | - | 514 |
Reconciliation to statutory results - £m
| Restated underlying results at actual exchange rates (at May 2020) | Disposed businesses (including disposals not yet completed (a) | Onerous contracts | Restructuring and separation | Specific and other separately disclosed items | Statutory results at actual exchange rates | Exchange differences | Statutory results at May 2020 exchange rates | |
| Revenue | 7,047 | 625 | 86 | 7,758 | (148) | 7,610 | ||
| Adjusted PBITA | 419 | 82 | - | 501 | (8) | 493 | ||
| Profit before tax | 307 | 76 | 18 | (57) | (317) | 27 | 5 | 32 |
| Profit after tax | 224 | 56 | 15 | (49) | (326) | (80) | 7 | (73) |
| Earnings | 213 | 50 | 15 | (49) | (320) | (91) | 7 | (84) |
| Earnings per share - p | 13.8 | 3.2 | 1.0 | (3.2) | (20.7) | (5.9) | 0.5 | (5.4) |
| Operating cash flow | 514 | 119 | 5 | (47) | (87) | 504 | - | 504 |
a) To present results on a consistent and comparable basis, the results of any businesses sold or closed in either the current or prior periods (including those subject to the Group’s irrevocable sales agreement with Brink’s, announced on 26 February 2020, which have not yet completed) are excluded from the underlying results in both the current and prior periods. Most of the businesses which have been reclassified from underlying results to disposed businesses relate to the sale to Brink’s, which is approximately 75% complete as at 9 June 2020.
b) Adjusted PBITA is an Alternative Performance Measure as defined in page 53 of the 2019 Integrated Report and Accounts.