Release details

2018-07-11 08:00 CEST
  • Print
  • Share Share
en

G4S plc UK DK : G4S presents 2017 segmental results reflecting new organisation structure

.

11 July 2018

 G4S presents 2017 segmental results reflecting new organisation structure

In accordance with IFRS, the presentation of G4S's results from H1 2018 onwards will reflect the new organisation structure which was implemented on 1 January 2018.  This saw the creation of new management structures for Secure Solutions and Global Cash Solutions which has enabled us to further strengthen the Group's strategic, commercial and operational focus in each of our core service lines.

In addition, the presentation of the Group's results will reflect the:

  • elimination of the separate presentation of portfolio businesses as the portfolio programme is substantially complete; and
  • introduction of the separate presentation of the impact of business disposals in the current and prior year.

These presentational changes do not change the Group's audited prior period results.

Ahead of the announcement of its half year 2018 results on 9 August, to aid comparison with prior periods, a summary of the Group's results for H1 2017 and FY 2017 reflecting the above changes and presented at average exchange rates for the six months ended 30 June 2018 is set out below:

£m HY 2017 FY 2017
   

Revenue
Adjusted
 PBITA
 

EPS
 

Revenue
Adjusted
 PBITA
 

EPS
             
Core businesses
as previously reported
3,715 235 8.3 7,427 496 17.9
Portfolio businesses as
 previously reported
200 2 (0.1) 282 (5) (1.0)
Business disposals:
2017 & 2018
(156) (10) (0.4) (197) (14) (0.4)
Underlying businesses at
 actual exchange rates
3,759 227 7.8 7,512 477 16.5
Exchange differences (167) (9) (0.5) (257) (14) (0.5)
Underlying businesses at
H1 2018 exchange rates
3,592 218 7.4 7,255 463 16.1

Reconciliations of the segmental and total group results as previously reported to those reported in the new structure are set out at the end of this announcement.

For further enquiries, please contact:
Helen Parris                                         Director of Investor Relations            +44 (0) 208 7222125

Media enquiries:    

Sophie McMillan                                  Head of Media                                     +44 (0) 759 5523483


                                                                                                               

Notes to Editors:
G4S is the 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. G4S is active in around 90 countries and has around 570,000 employees. For more information on G4S, visit www.g4s.com.



Reconciliation of segmental results
for the six months ended 30 June 2017
 to the new organisational structure
  Core businesses as previously reported
(a)
Cash Solutions
(b)
Secure Solutions
(c)
Core businesses in new structure
Revenue - £m        
         
Africa 228 (34)  -  194
Asia 367 (115) 179 431
Middle East & India 427 (27) (179) 221
Europe 654 (146)  -  508
United Kingdom & Ireland 649 (144)  -  505
Europe & Middle East 1,730 (317) (179) 1,234
Latin America 350 (22)  -  328
North America 1,040 (149)  -  891
Americas 1,390 (171)  -  1,219
Cash Solutions  -  637  -  637
Total Core/Underlying 3,715  -   -  3,715

  Core businesses in new structure Portfolio businesses
(d)
Disposed businesses (e) Underlying businesses
 at actual exchange rates
Revenue - £m        
         
Africa 194 6 (1) 199
Asia 431 13 (13) 431
Middle East & India 221      
Europe 508      
United Kingdom & Ireland 505      
Europe & Middle East 1,234 97 (103) 1,228
Latin America 328      
North America 891      
Americas 1,219 41 (23) 1,237
Cash Solutions 637 43 (16) 664
Total Core/Underlying 3,715 200 (156) 3,759

  Underlying businesses
 at actual exchange rates
Exchange differences
 (f)
Underlying businesses
 at H1 2018 exchange
 rates
Revenue - £m      
       
Africa 199 (10) 189
Asia 431 (28) 403
Middle East & India      
Europe      
United Kingdom & Ireland      
Europe & Middle East 1,228 (6) 1,222
Latin America      
North America      
Americas 1,237 (106) 1,131
Cash Solutions 664 (17) 647
Total Core/Underlying 3,759 (167) 3,592

Adjusted PBITA (g) - £m        
  Core businesses as previously reported
(a)
Cash Solutions
(b)
Secure Solutions
(c)
Core businesses in new structure
         
Africa 24 (9)  -  15
Asia 30 (16) 14 28
Middle East & India 34 (1) (14) 19
Europe 48 (20)  -  28
United Kingdom & Ireland 53 (14)  -  39
Europe & Middle East 135 (35) (14) 86
Latin America 15 (3)  -  12
North America 57 (17)  -  40
Americas 72 (20)  -  52
Cash Solutions  -  80  -  80
Total before corporate costs 261  -   -  261
Corporate costs (26)  -   -  (26)
Total Core/Underlying 235  -   -  235

  Core businesses in new structure Portfolio businesses
(d)
Disposed businesses (e) Underlying businesses
 at actual exchange rates
         
Africa 15 1 (1) 15
Asia 28 1 (1) 28
Middle East & India 19      
Europe 28      
United Kingdom & Ireland 39      
Europe & Middle East 86 5 (5) 86
Latin America 12      
North America 40      
Americas 52  -  (2) 50
Cash Solutions 80 (5) (1) 74
Total before corporate costs 261 2 (10) 253
Corporate costs (26)  -   -  (26)
Total Core/Underlying 235 2 (10) 227

  Underlying businesses
 at actual exchange rates
Exchange differences
 (f)
Underlying businesses
 at H1 2018 exchange
 rates
       
Africa 15 (1) 14
Asia 28 (2) 26
Middle East & India      
Europe      
United Kingdom & Ireland      
Europe & Middle East 86 - 86
Latin America      
North America      
Americas 50 (3) 47
Cash Solutions 74 (3) 71
Total before corporate costs 253 (9) 244
Corporate costs (26)  -  (26)
Total Core/Underlying 227 (9) 218

  Core
businesses
as previously
reported
Portfolio businesses
 (d)
Disposed businesses
 (e)
Underlying
businesses
at actual
exchange rates
         
Other financial
 KPIs - £m
     
         
Profit before tax 181 1 (10) 172
Profit after tax 138 (1) (7) 130
Earnings 128 (1) (6) 121
Earnings per share - p 8.3 (0.1) (0.4) 7.8
Operating cash flow 192 (3) (6) 183

  Underlying
businesses
at actual
exchange rates
Exchange
differences (f)
Underlying
businesses at
H1 2018
Exchange
 rates
 Other financial
 KPIs - £m
     
Profit before tax 172 (10) 162
Profit after tax 130 (7) 123
Earnings 121 (7)   114
Earnings per share - p 7.8 (0.5) 7.4
Operating cash flow 183  -  183

Recon
ciliation
 to stat
utory
 results

 
Under
lying
busin
esses
at
 actual
 exch
ange
rates
Add
 back:
Dis
posed
 bus
inesses (e)
Restr
ucturing
One
rous
 cont
racts
Acq
uisition
 related
amor
tisation
and
 other
Statutory
 results
at
actual
exch
ange
rates 
             
Other
financial
 KPIs - £m
           
             
Profit
before
 tax
172 10 (14) (5) 55 218
Profit
After
 tax
130 7 (11) (4) 42 164
Earnings 121 6 (11) (4) 38 150
Earnings
per
share
- p
7.8 0.4 (0.7) (0.3) 2.5 9.7
Operating
 cash flow
183 6 (13)  -   -  176

Reconciliation
 to statutory
 results

 
Statutory
results
at actual
 exchange
rates 
Exchange
differences
(f)
Statutory
 results
at H1
 2018
exchange
rates 
       
Other financial
 KPIs - £m
     
       
Profit before
 tax
218 (12) 206
Profit afte
r tax
164 (8) 156
Earnings 150 (8) 142
Earnings
per share
- p
9.7 (0.5) 9.2
Operating
 cash flow
176  -  176


Reconciliation of segmental results
 for the year ended 31 December 2017
 to the new organisational structure
  Core businesses
 as
previously reported
(a)
Cash Solutions
(b)
Secure Solutions
(c)
Core
businesses
 in new structure
Revenue - £m        
         
Africa 457 (70)  -  387
Asia 736 (223) 358 871
Middle East & India 845 (54) (358) 433
Europe 1,356 (303)  -  1,053
United Kingdom & Ireland 1,334 (293)  -  1,041
Europe & Middle East 3,535 (650) (358) 2,527
Latin America 693 (41)  -  652
North America 2,006 (225)  -  1,781
Americas 2,699 (266)  -  2,433
Cash Solutions  -  1,209  -  1,209
Total Core/Underlying 7,427  -   -  7,427

  Core
businesses
 in new structure
Portfolio businesses
(d)
Disposed businesse
s (e)
Underlying
businesses
 at actual exchange
rates
Revenue - £m        
         
Africa 387 12 (3) 396
Asia 871 25 (25) 871
Middle East & India 433      
Europe 1,053      
United Kingdom & Ireland 1,041      
Europe & Middle East 2,527 102 (115) 2,514
Latin America 652      
North America 1,781      
Americas 2,433 56 (23) 2,466
Cash Solutions 1,209 87 (31) 1,265
Total Core/Underlying 7,427 282 (197) 7,512

  Underlying
businesses
 at actual exchange
rates
Exchange differences
(f)
Underlying
businesses at
H1 2018
exchange rates
Revenue - £m      
       
Africa 396 (13) 383
Asia 871 (45) 826
Middle East & India      
Europe      
United Kingdom & Ireland      
Europe & Middle East 2,514 (20) 2,494
Latin America      
North America      
Americas 2,466 (160) 2,306
Cash Solutions 1,265 (19) 1,246
Total Core/Underlying 7,512 (257) 7,255

Adjusted PBITA (g) - £m        
  Core businesses
 as
previously reported
(a)
Cash Solutions
(b)
Secure Solutions
(c)
Core
businesses
 in new structure
         
Africa 46 (18)  -  28
Asia 65 (32) 27 60
Middle East & India 58 - (27) 31
Europe 104 (43)  -  61
United Kingdom & Ireland 120 (35)  -  85
Europe & Middle East 282 (78) (27) 177
Latin America 29 (7)  -  22
North America 123 (25)  -  98
Americas 152 (32)  -  120
Cash Solutions  -  160  -  160
Total before corporate costs 545  -   -  545
Corporate costs (49)  -   -  (49)
Total Core/Underlying 496  -   -  496

  Core
businesses
 in new structure
Portfolio businesses
(d)
Disposed businesse
s (e)
Underlying
businesses
 at actual exchange
rates
         
Africa 28 1 (1) 28
Asia 60  -   -  60
Middle East & India 31      
Europe 61      
United Kingdom & Ireland 85      
Europe & Middle East 177 4 (8) 173
Latin America 22      
North America 98      
Americas 120  -  (2) 118
Cash Solutions 160 (10) (3) 147
Total before corporate costs 545 (5) (14) 526
Corporate costs (49)  -   -  (49)
Total Core/Underlying 496 (5) (14) 477


  Underlying
businesses
 at actual exchange
rates
Exchange differences
(f)
Underlying
businesses at
H1 2018
exchange rates
       
Africa 28 (1) 27
Asia 60 (3) 57
Middle East & India      
Europe      
United Kingdom & Ireland      
Europe & Middle East 173 (1) 172
Latin America      
North America      
Americas 118 (7) 111
Cash Solutions 147 (2) 145
Total before corporate costs 526 (14) 512
Corporate costs (49)  -  (49)
Total Core/Underlying 477 (14) 463

  Core businesses as previously reported Portfolio businesses (d) Disposed businesses (e) Underlying businesses at actual exchange rates
         
Other financial
KPIs - £m
     
         
Profit before tax 383 (7) (14) 362
Profit after tax 291 (14) (7) 270
Earnings 277 (15) (6) 256
Earnings per share - p 17.9 (1.0) (0.4) 16.5
Operating cash flow 527 (7) (9) 511

  Underlying businesses at actual exchange rates Exchange differences (f) Underlying businesses at H1 2018 exchange rates
 Other financial
KPIs - £m
     
Profit before tax 362 (11) 351
Profit after tax 270 (8) 262
Earnings 256 (7) 249
Earnings per share - p 16.5 (0.5) 16.1
Operating cash flow 511  - 511

Recon
ciliation to
statutory
results

 
Underlying
businesses
 at actual exchange rates
Add back:
Disposed businesses (e)
Rest
ructuring
Onerous contracts Acquisition related amortisation and other Statutory results at actual exchange rates   
             
Other
financial
KPIs
- £m
           
             
Profit
before tax
362 14 (20) (19) 49 386
Profit
 after tax
270 7 (16) (15) 12 258
Earnings 256 6 (16) (15) 5 236
Earnings
per share
 - p
16.5 0.4 (1.0) (1.0) 0.3 15.2
Operating
cash flow
511 9 (19)  -   -  501

Reconciliation to
statutory results

 
Statutory results at actual exchange rates    Exchange differences
(f)
Statutory results at H1 2018 exchange rates 
       
Other financial KPIs - £m      
       
Profit before tax 386 (11) 375
Profit after tax 258 (8) 250
Earnings 236 (8) 228
Earnings per share - p 15.2 (0.5) 14.7
Operating cash flow 501  -  501

a) Results from core businesses as previously reported in the Group's results for the

six months ended 30 June 2017 or the year ended 31 December 2017 as appropriate.

Segment results were presented geographically with segments combining Secure Solutions and Cash Solutions.

b) As reported in the 2017 Integrated Report and Accounts, in January 2018 the Group created a new

 'Cash Solutions' division. This column presents the re-classification of the results from the Cash Solutions

 businesses that were previously reported in the geographical segments into the new Cash Solutions division. 

c) With effect from 1 January 2018, the Secure Solutions division was consolidated into four regions: Americas,

Europe & Middle East, Africa and Asia. Following this re-organisation, the results of certain businesses previously

reported in the Middle East & India region (primarily India and Bangladesh) are now reported in the Asia region. 

d) As reported in the 2017 Integrated Report and Accounts, the Group's portfolio business divestment and

closure programme is now materially complete. The financial impact of portfolio businesses is no longer material

 and to simplify reporting moving forwards, the Group has ceased separate columnar disclosure of these businesses.

e) To present results on a consistent and comparable basis, the results from any businesses sold in either the

current or prior periods are excluded from the underlying businesses in both the current and prior periods. These

include the Youth Services businesses in North America, the children's homes business in the UK and Group

businesses in Israel and Bulgaria in 2017 and the document storage business in Kenya and the Group's businesses

 in Hungary in 2018.

f) The 30 June 2017 results were presented at average exchange rates for the six months ended 30 June 2017

 and those for the year ended 31 December 2017 were presented at average exchange rates for the year ended

 31 December 2017. The comparative results have been re-presented at average exchange rates for the six months

 ended 30 June 2018.

g) Adjusted PBITA is an Alternative Performance Measure as defined in the 2017 Integrated Report and Accounts, together

 with restructuring, acquisition-related amortisation, specific and other items.

HUG#2204324