G4S Chief Executive Officer Ashley Almanza commented:

“In the first half of this year, our improving sales performance in both Secure Solutions and Cash Solutions saw the Group deliver underlying revenue growth of 4.7%. This growth together with new contract wins, supports our medium-term revenue goal of 4-6% per annum.”

“Our revenue mix continued to improve as our technology-enabled revenues in Secure Solutions grew by 14.8% across the globe and our North American cash technology revenues grew by 33%.”

“The Group’s half year performance, sales pipeline, revenue momentum and productivity programmes support a positive outlook.”

“Our separation review is now complete and the Board has approved the separation of Cash Solutions from the Group. As a result, we have set in train plans for the demerger of Cash Solutions in H1 2020. We believe that this will create two strong, focused businesses each with the clear potential to capitalise on market leading positions and to unlock substantial value for customers, shareholders and employees.”

First half highlights (Underlying results unless otherwise noted):

• Secure Solutions revenue +4.9% Cash Solutions +3.9%
• PBITA margin of 6.2% (2018: 6.4%); positive impact of growth offset by new one-off contract mobilisation costs (£4 million in 2019) and one-off bullion contract profit in 2018 of £8 million
• Operating cash flow conversion of 88% (2018: 109%); expect FY conversion above 100%
• Net debt to EBITDA 2.85x (30 June 2018: 2.73x); FY 2019 expect 2.7x
• Interim dividend: 3.59p per share (2018: 3.59p per share)
• Statutory earnings of £59 million (2018: £101 million) include businesses sold, onerous contracts and exchange rate movements, £36 million restructuring and separation costs and £35 million goodwill impairment relating to Brazilian businesses acquired in 2012.

A full copy of the statement is available on the corporate website here: https://bit.ly/2YQnL01