G4S plc UK DK: Statement re Capital Markets Update
5 November 2013
Capital Markets Update
Today, G4S plc, the world's leading Global Integrated Security Company is
holding a capital markets update at which the Chief Executive, Ashley Almanza,
and Chief Finance Officer, Himanshu Raja, will brief investors on the group's
markets and strategy.
Ashley Almanza, who started his review when he was appointed CEO in July this
"Our review of the business has confirmed that G4S has outstanding worldwide
market positions. We are the global leader in integrated security, providing
security products and security services and solutions in markets that are
valued at over £100 billion. There is strong and growing demand for our core
products and services, particularly in developing markets which we expect will
represent around 40% of our sales in 2016.
G4S has strong fundamentals and these will be improved by changes to the way
we manage the business. We will sharpen our strategic focus and strengthen
our investment in customer service, organic growth, and technology and
innovation. We will share best practice across the group and there will be a
clear focus on capital discipline, cost leadership and cash flow management to
ensure we deliver sustainable profitable growth."
The global security market has strong structural growth characteristics.
According to Freedonia 2013, the global security market is expected to grow
7.3% between 2011 and 2016 with high single digit/double digit growth in
emerging markets where G4S has a unique established position.
G4S market positions
G4S is well positioned to take advantage of this structural growth and is
organised by geographic market and service line. Our core service lines are
Cash Solutions, Secure Solutions and Care & Justice Services.
The group has a diverse and resilient portfolio of businesses by geography,
service and customer and will keep the portfolio under regular review to
ensure it has the best approach to market. Across the portfolio the group has
identified strong growth opportunities to support 5-8% per annum organic
growth and with a contract pipeline of £5bn as at September 2013
Successful strategy execution
A detailed review of the group's organisational resource and capability has
identified many strengths and also areas where additional investment is
required and is underway.
Our ability to take full advantage of market opportunities and the successful
execution of our strategy will be underpinned by:
*Strategic Focus including portfolio management
*We have identified 35 businesses to grow, restructure or recycle
*Investment in customer service and organic growth
*Additional £15-20m investment in sales, business development and
capability in 2014
*Further investment will be progressively self-funding
*Plans to extend technology capability across the group to grow our
£800m revenue security systems business to support and drive growth
and profitability for our manned security offer
*People and Values
*Reinforcing corporate values of Customer Focus, Expertise, Best
People, Teamwork & Collaboration, Integrity and Performance
*Establishing systematic processes to ensure that we have the right
people focussed on the right opportunities
*A rigorous performance management framework being established
*Disciplined Financial Management
*Service excellence centres to drive contract performance , gross
margin improvement and improved customer service
*Re-balancing organic and inorganic capital investment
*Minimum 10% post tax IRR on investment
*Previously announced £30-35m restructuring programme underway
Our Capital Markets presentation will be made at 2pm today and a video webcast
will be available.To register for the webcast please paste the link below
into your browser and follow the on-screen instructions:
Today, G4S has also issued a trading update for the first nine months of 2013
and is available on www.g4s.com.
For further enquiries, please contact G4S plc:
Helen Parris - Director of Investor Relations +44 (0) 1293 554423
For Media enquiries, please contact
Adam Mynott, Director of Media Relations +44 (0) 1293 554445
Faeth Birch - RLM Finsbury +44 (0) 207 251 3801
Notes to Editors:
G4S is the leading Global Integrated Security Company which specialises in the
provision of security products and services to customers.
G4S is quoted on the London Stock Exchange and has a secondary stock exchange
listing in Copenhagen. G4S is active in more than 115 countries and has
620,000 employees. For more information on G4S, visit www.g4s.com.
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: G4S plc UK DK via Thomson Reuters ONE
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