G4S plc G4S to resume dividend for 2021 with clear potential for significant further cash returns to shareholders
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FOR IMMEDIATE RELEASE
25 November 2020
G4S TO RESUME DIVIDEND FOR 2021 WITH CLEAR POTENTIAL FOR SIGNIFICANT FURTHER CASH RETURNS TO SHAREHOLDERS
G4S plc (“G4S” or the “Company”) has today published its Second Defence Circular (“Circular”) in relation to the unsolicited Offer for G4S made by Garda World Security Corporation (“GardaWorld”).
- G4S is a global leader in security services
- Continued strong trading performance for 2020
- Momentum for 2021: 73% of revenue growth covered by new contracts already won
- Confidence in achieving financial targets, including:
- Revenue growth of 4-6% per annum
- Profit(1) margin expansion to 7% in the medium term(2)
- Free cash flow in excess of £1bn from 2021-2025(2)
- Leverage of 2.0-2.5x
- Resume dividend for 2021 and beyond
- Clear potential for significant further cash returns to shareholders
- Potential for significant re-rating
John Connolly, Chairman of G4S, said:
“G4S has a bright future as an independent company with significant value upside for shareholders.
The Board believes that G4S has significant potential to re-rate as a result of its above-market growth outlook, higher margins from integrated security services and the material value upside in Retail Cash Solutions.
The Company’s resilient performance and positive outlook enables it to resume the dividend for 2021 and provides clear potential for significant further cash returns to shareholders.
The GardaWorld Offer does not remotely reflect G4S’s fundamental value, let alone its value to GardaWorld and BC Partners. We urge shareholders to take no action in relation to GardaWorld’s Offer.”
Ashley Almanza, Chief Executive Officer of G4S, said:
“G4S has fundamentally refocused and repositioned its business and is today a global leader in security services with an unmatched market footprint and industry-leading capabilities. Our sustained focus on technology and high value integrated security clearly differentiates G4S in the marketplace and has delivered robust results in the first nine months of this year with strong cash flow and underlying earnings ahead of last year. Our momentum remains very good with contracts won and retained year to date that have an annual value of £2.5 billion.