.
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| | | | | | | Adjusted | Adjusted | | |Revenue PBITA EPS|Revenue 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 Cash Secure Core | reported Solutions Solutions businesses in | (a) (b) (c) 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 & 649 (144) - 505 |Ireland +------------------------------------------------------------------------------ |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 3,715 - - 3,715 |Core/Underlying +------------------------------------------------------------------------------
+------------------------------------------------------------------------------ | Underlying | businesses | Core Portfolio at actual | businesses in businesses Disposed exchange | new structure (d) businesses (e) rates +------------------------------------------------------------------------------ |Revenue - £m | | | |Africa 194 6 (1) 199 | |Asia 431 13 (13) 431 +------------------------------------------------------------------------------ |Middle East & India 221 | |Europe 508 | |United Kingdom & 505 |Ireland +------------------------------------------------------------------------------ |Europe & Middle 1,234 97 (103) 1,228 |East +------------------------------------------------------------------------------ |Latin America 328 | |North America 891 +------------------------------------------------------------------------------ |Americas 1,219 41 (23) 1,237 | |Cash Solutions 637 43 (16) 664 +------------------------------------------------------------------------------ |Total 3,715 200 (156) 3,759 |Core/Underlying +------------------------------------------------------------------------------
+------------------------------------------------------------------------------+ | Underlying| | Underlying businesses| | businesses Exchange at H1 2018 | | at actual differences exchange| | exchange rates (f) 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 Cash Secure Core| | reported Solutions Solutions businesses in| | (a) (b) (c) new structure| +------------------------------------------------------------------------------+ | | | | |Africa 24 (9) - 15| | | |Asia 30 (16) 14 28| +------------------------------------------------------------------------------+ |Middle East & India 34 (1) (14) 19| | | |Europe 48 (20) - 28| | | |United Kingdom & 53 (14) - 39| |Ireland | +------------------------------------------------------------------------------+ |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 235 - - 235| |Core/Underlying | +------------------------------------------------------------------------------+
+------------------------------------------------------------------------------+ | Underlying| | businesses| | Core Portfolio at actual| | businesses in businesses Disposed exchange| | new structure (d) businesses (e) rates| +------------------------------------------------------------------------------+ | | | | |Africa 15 1 (1) 15| | | |Asia 28 1 (1) 28| +------------------------------------------------------------------------------+ |Middle East & India 19 | | | |Europe 28 | | | |United Kingdom & 39 | |Ireland | +------------------------------------------------------------------------------+ |Europe & Middle 86 5 (5) 86| |East | +------------------------------------------------------------------------------+ |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 235 2 (10) 227| |Core/Underlying | +------------------------------------------------------------------------------+
+------------------------------------------------------------------------------+ | Underlying| | Underlying businesses| | businesses Exchange at H1 2018 | | at actual differences exchange| | exchange rates (f) 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 Underlying| | businesses Portfolio Disposed businesses| | as previously businesses businesses at actual| | reported (d) (e) 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| | Underlying businesses at| | businesses H1 2018| | at actual Exchange Exchange| | exchange rates differences (f) 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| +-------------------------------------------------------------------+
+----------------------------------------------------------------+ | Under | | lying | | busin Acq Statutory| |Recon esses Add uisition results| |ciliation at back: related at| | to stat actual Dis One amor actual| |utory exch posed rous tisation exch| | results ange bus Restr cont and ange| | rates inesses (e) ucturing racts other 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| +----------------------------------------------------------------+
+-----------------------------------------------+ | Statutory| | Statutory results| |Reconciliation results at H1| | to statutory at actual Exchange 2018| | results exchange differences exchange| | rates (f) 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 Core| | previously Cash Secure businesses| | reported Solutions Solutions in new| | (a) (b) (c) 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 & 1,334 (293) - 1,041| |Ireland | +------------------------------------------------------------------------------+ |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 7,427 - - 7,427| |Core/Underlying | +------------------------------------------------------------------------------+
+------------------------------------------------------------------------------+ | Underlying| | Core businesses| | businesses Portfolio Disposed at actual| | in new businesses businesse exchange| | structure (d) s (e) rates| +------------------------------------------------------------------------------+ |Revenue - £m | | | | | | | |Africa 387 12 (3) 396| | | |Asia 871 25 (25) 871| +------------------------------------------------------------------------------+ |Middle East & India 433 | | | |Europe 1,053 | | | |United Kingdom & 1,041 | |Ireland | +------------------------------------------------------------------------------+ |Europe & Middle 2,527 102 (115) 2,514| |East | +------------------------------------------------------------------------------+ |Latin America 652 | | | |North America 1,781 | +------------------------------------------------------------------------------+ |Americas 2,433 56 (23) 2,466| | | |Cash Solutions 1,209 87 (31) 1,265| +------------------------------------------------------------------------------+ |Total 7,427 282 (197) 7,512| |Core/Underlying | +------------------------------------------------------------------------------+
+------------------------------------------------------------------------------+ | Underlying | | businesses Underlying| | at actual Exchange businesses at| | exchange differences H1 2018| | rates (f) 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 Core| | previously Cash Secure businesses| | reported Solutions Solutions in new| | (a) (b) (c) structure| | | | | | | |Africa 46 (18) - 28| | | |Asia 65 (32) 27 60| +------------------------------------------------------------------------------+ |Middle East & India 58 - (27) 31| | | |Europe 104 (43) - 61| | | |United Kingdom & 120 (35) - 85| |Ireland | +------------------------------------------------------------------------------+ |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 496 - - 496| |Core/Underlying | +------------------------------------------------------------------------------+
+------------------------------------------------------------------------------+ | Underlying| | Core businesses| | businesses Portfolio Disposed at actual| | in new businesses businesse exchange| | structure (d) s (e) rates| +------------------------------------------------------------------------------+ | | | | |Africa 28 1 (1) 28| | | |Asia 60 - - 60| +------------------------------------------------------------------------------+ |Middle East & India 31 | | | |Europe 61 | | | |United Kingdom & 85 | |Ireland | +------------------------------------------------------------------------------+ |Europe & Middle 177 4 (8) 173| |East | +------------------------------------------------------------------------------+ |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 496 (5) (14) 477| |Core/Underlying | +------------------------------------------------------------------------------+
+------------------------------------------------------------------------------+ | Underlying | | businesses Underlying| | at actual Exchange businesses at| | exchange differences H1 2018| | rates (f) 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| +------------------------------------------------------------------------------+
+------------------------------------------------------------------------------+ | Underlying| | Core businesses businesses at| | as previously Portfolio Disposed actual exchange| | reported businesses (d) businesses (e) rates| +------------------------------------------------------------------------------+ | | | | |Other financial | |KPIs - £m | | | | | | | |Profit before 383 (7) (14) 362| |tax | | | |Profit after 291 (14) (7) 270| |tax | | | |Earnings 277 (15) (6) 256| | | |Earnings per 17.9 (1.0) (0.4) 16.5| |share - p | | | |Operating cash 527 (7) (9) 511| |flow | +------------------------------------------------------------------------------+
+------------------------------------------------------------------------------+ | Underlying Underlying| | businesses at businesses at H1| | actual exchange Exchange differences 2018 exchange| | rates (f) rates| +------------------------------------------------------------------------------+ | Other financial | |KPIs - £m | | | |Profit before tax 362 (11) 351| | | |Profit after tax 270 (8) 262| | | |Earnings 256 (7) 249| | | |Earnings per share 16.5 (0.5) 16.1| |- p | | | |Operating cash 511 - 511| |flow | +------------------------------------------------------------------------------+
+------------------------------------------------------------------------------+ |Recon | |ciliation Underlying Statutory| |to businesses Add back: Acquisition results| |statutory at actual Disposed related at actual| |results exchange businesses Rest Onerous amortisation exchange| | rates (e) ructuring contracts and other rates | +------------------------------------------------------------------------------+ | | | | |Other | |financial | |KPIs | |- £m | | | | | | | |Profit 362 14 (20) (19) 49 386| |before tax | | | |Profit 270 7 (16) (15) 12 258| | after tax | | | |Earnings 256 6 (16) (15) 5 236| | | |Earnings 16.5 0.4 (1.0) (1.0) 0.3 15.2| |per share | | - p | | | |Operating 511 9 (19) - - 501| |cash flow | +------------------------------------------------------------------------------+
+------------------------------------------------------------------------------+ |Reconciliation to Statutory results Exchange Statutory results| |statutory results at actual differences at H1 2018 | | exchange rates (f) 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.
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients. The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: G4S plc UK DK via GlobeNewswire
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