G4S plc UK DK : G4S presents 2017 segmental results reflecting new organisation structure

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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
	Revenue	Adjusted  PBITA	EPS	Revenue	Adjusted  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            [phone]

Media enquiries:

Sophie McMillan                                  Head of Media                                     [phone]


                                                                                                               

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 reported (a)	Cash Solutions (b)	Secure Solutions (c)	Core businesses in 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 & Ireland	649	(144)	-	505
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 Core/Underlying	3,715	-	-	3,715

	Core businesses in new structure	Portfolio businesses (d)	Disposed businesses (e)	Underlying businesses  at actual exchange rates
Revenue - £m
Africa	194	6	(1)	199
Asia	431	13	(13)	431
Middle East & India	221
Europe	508
United Kingdom & Ireland	505
Europe & Middle East	1,234	97	(103)	1,228
Latin America	328
North America	891
Americas	1,219	41	(23)	1,237
Cash Solutions	637	43	(16)	664
Total Core/Underlying	3,715	200	(156)	3,759

	Underlying businesses  at actual exchange rates	Exchange differences  (f)	Underlying businesses  at H1 2018 exchange  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 reported (a)	Cash Solutions (b)	Secure Solutions (c)	Core businesses in new structure
Africa	24	(9)	-	15
Asia	30	(16)	14	28
Middle East & India	34	(1)	(14)	19
Europe	48	(20)	-	28
United Kingdom & Ireland	53	(14)	-	39
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 Core/Underlying	235	-	-	235

	Core businesses in new structure	Portfolio businesses (d)	Disposed businesses (e)	Underlying businesses  at actual exchange rates
Africa	15	1	(1)	15
Asia	28	1	(1)	28
Middle East & India	19
Europe	28
United Kingdom & Ireland	39
Europe & Middle East	86	5	(5)	86
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 Core/Underlying	235	2	(10)	227

	Underlying businesses  at actual exchange rates	Exchange differences  (f)	Underlying businesses  at H1 2018 exchange  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 businesses as previously reported	Portfolio businesses  (d)	Disposed businesses  (e)	Underlying businesses at actual 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 businesses at actual exchange rates	Exchange differences (f)	Underlying businesses at H1 2018 Exchange  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

Recon ciliation  to stat utory  results	Under lying busin esses at  actual  exch ange rates	Add  back: Dis posed  bus inesses (e)	Restr ucturing	One rous  cont racts	Acq uisition  related amor tisation and  other	Statutory  results at actual exch ange 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

Reconciliation  to statutory  results	Statutory results at actual  exchange rates	Exchange differences (f)	Statutory  results at H1  2018 exchange 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 previously reported (a)	Cash Solutions (b)	Secure Solutions (c)	Core businesses  in new 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 & Ireland	1,334	(293)	-	1,041
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 Core/Underlying	7,427	-	-	7,427

	Core businesses  in new structure	Portfolio businesses (d)	Disposed businesse s (e)	Underlying businesses  at actual exchange rates
Revenue - £m
Africa	387	12	(3)	396
Asia	871	25	(25)	871
Middle East & India	433
Europe	1,053
United Kingdom & Ireland	1,041
Europe & Middle East	2,527	102	(115)	2,514
Latin America	652
North America	1,781
Americas	2,433	56	(23)	2,466
Cash Solutions	1,209	87	(31)	1,265
Total Core/Underlying	7,427	282	(197)	7,512

	Underlying businesses  at actual exchange rates	Exchange differences (f)	Underlying businesses at H1 2018 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 previously reported (a)	Cash Solutions (b)	Secure Solutions (c)	Core businesses  in new structure
Africa	46	(18)	-	28
Asia	65	(32)	27	60
Middle East & India	58	-	(27)	31
Europe	104	(43)	-	61
United Kingdom & Ireland	120	(35)	-	85
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 Core/Underlying	496	-	-	496

	Core businesses  in new structure	Portfolio businesses (d)	Disposed businesse s (e)	Underlying businesses  at actual exchange rates
Africa	28	1	(1)	28
Asia	60	-	-	60
Middle East & India	31
Europe	61
United Kingdom & Ireland	85
Europe & Middle East	177	4	(8)	173
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 Core/Underlying	496	(5)	(14)	477

	Underlying businesses  at actual exchange rates	Exchange differences (f)	Underlying businesses at H1 2018 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

	Core businesses as previously reported	Portfolio businesses (d)	Disposed businesses (e)	Underlying businesses at actual exchange rates
Other financial KPIs - £m
Profit before tax	383	(7)	(14)	362
Profit after tax	291	(14)	(7)	270
Earnings	277	(15)	(6)	256
Earnings per share - p	17.9	(1.0)	(0.4)	16.5
Operating cash flow	527	(7)	(9)	511

	Underlying businesses at actual exchange rates	Exchange differences (f)	Underlying businesses at H1 2018 exchange rates
Other financial KPIs - £m
Profit before tax	362	(11)	351
Profit after tax	270	(8)	262
Earnings	256	(7)	249
Earnings per share - p	16.5	(0.5)	16.1
Operating cash flow	511	-	511

Recon ciliation to statutory results	Underlying businesses  at actual exchange rates	Add back: Disposed businesses (e)	Rest ructuring	Onerous contracts	Acquisition related amortisation and other	Statutory results at actual exchange rates
Other financial KPIs - £m
Profit before tax	362	14	(20)	(19)	49	386
Profit  after tax	270	7	(16)	(15)	12	258
Earnings	256	6	(16)	(15)	5	236
Earnings per share  - p	16.5	0.4	(1.0)	(1.0)	0.3	15.2
Operating cash flow	511	9	(19)	-	-	501

Reconciliation to statutory results	Statutory results at actual exchange rates	Exchange differences (f)	Statutory results at H1 2018 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.

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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