G4S plc

Trading Update

17 June 2020

G4S plc AGM
 Trading Update

With its 2020 Annual General Meeting today, and in view of the global pandemic, G4S provides the following update for the five months ended 31 May 2020. Unless stated otherwise, all figures and commentary relate to underlying results, are unaudited and stated at May 2020 exchange rates. All comparisons are with the first five months of 2019 unless otherwise stated and are presented on a pro-forma basis that excludes all conventional cash businesses sold to Brink’s on 26 February 2020.

Commenting on the first five months trading, G4S Group Chief Executive Officer, Ashley Almanza said:

“G4S is at an important inflexion point as we rapidly transition towards a highly focused global business delivering technology-enabled security solutions. The sale of our conventional cash business is 75% complete, reducing our net debt and strengthening our strategic, commercial and operational focus.

The benefits of our strategy are evident in the Group’s resilient performance with our Secure Solutions revenues slightly ahead of 2019 for the first five months, despite the severe economic downturn seen across the globe. As expected, our Cash Solutions revenues were 16% lower at £187 million, reflecting the impact of lockdown on the retail and commercial banking segments. Our Secure Solutions business (£2,574 million) now represents over 90% of the Group’s pro-forma revenues and benefits from a growing proportion of consulting and technology enabled revenues. In the first five months the strength of our security business substantially offset the lower cash volumes and, as a result, Group revenues for the first five months were slightly lower (1%) than the same period in 2019. We expect our Cash Solutions business to begin to recover as the pandemic lockdown restrictions are eased.

Our competitive performance has continued to be strong with contract wins totaling £1.2 billion annual contract value (2019: £1.2 billion). This provides further confidence in the Group’s outlook for 2020 and beyond.

In response to the Covid-19 pandemic, we continue to reinforce health and safety measures for employees and customers, assure service delivery and to protect the company’s financial performance, cash flow and financial position. As previously reported, the Group is implementing restructuring and cost saving measures to reflect the disposal of the conventional cash businesses and in response to the pandemic. As we continue to focus and simplify the Group, we expect to identify additional savings.