GFS10 May 2011 08:10
INTERIM MANAGEMENT STATEMENT
G4S, the international security solutions group, will be updating analysts and
investors today on trading for the year to date, including an overview of
financial performance to 31 March 2011.
In the first quarter of 2011, overall revenues grew 4.7% at constant exchange
rates compared to the same period last year, and grew 3.8% at actual exchange
rates. The group operating margin was slightly lower.
An overview of the financial performance for the three months to 31 March 2011
is as follows:
Organic Growth
Overall organic growth was 4% with New Markets growth at 8% and developed
markets at 2%.
* In secure solutions, organic growth was 5% with strong performances in the
UK and New Markets and a continued improvement in North America and
Continental Europe
* Cash solutions organic growth was -1%, with good underlying growth in New
Markets being offset by a 3% decline in developed markets. The decline in
developed markets was due to sustained low interest rates continuing to
cause volume pressure in markets such as the UK, Ireland and Scandinavia.
The previously announced contract losses in Romania and South Africa also
had a negative impact.
Margins
Profits for the first three months were above 2010 levels, but overall margins
were slightly lower (on both a constant and actual exchange rate basis) compared
to the same period last year due to lower cash solutions margins.
* Secure solutions margins were maintained
* In cash solutions, margins were 1% lower due to the volume issues outlined
above.