Trading update for fourth quarter and full year 2020

9 February 2021

G4S plc

Trading update for fourth quarter and full year 2020

G4S plc (“G4S” or the “Group”) provides the following trading update for the fourth quarter and full year 2020:

Unless stated otherwise, all commentary relates to underlying results for continuing businesses and is based on unaudited financial information at average exchange rates for the twelve months to the end of December 2020 prepared on a basis consistent with the Group’s underlying results for continuing businesses for the six months ended 30 June 2020.^a

Commenting on the fourth quarter and full year trading, G4S Group Chief Executive Officer Ashley Almanza said: “I'd like to thank my executive team and colleagues across G4S who, in the midst of the global pandemic, delivered a remarkable operating and financial performance, and continued to improve our health and safety performance. Our teams also produced an exceptional commercial performance with new and retained contract wins that have a total revenue value of £5.5 billion. These wins reflect the competitive strength of G4S’s integrated service offerings and provide strong support for G4S’s growth plans."

Trading performance

The Group's continuing businesses have maintained their resilience through the balance of the year and delivered a strong underlying performance in the fourth quarter. Revenues were in-line with the trends highlighted at the nine-month stage and PBITA margins held up well, once again demonstrating the momentum and underlying strength of our business. Our net cash flow generation was very strong and we ended the year with net debt to EBITDA well within our target range of 2.0 - 2.5 times. Our cash flow benefited from Covid-19 related payroll and other indirect tax deferrals of around £110 million and we expect around £80 million to reverse in 2021. We expect that this will be more than offset by disposal proceeds of around £100 million scheduled to be received from The Brink’s Company during Q1 2021, of which £40 million has already been received since the 2020 year end.

Contract wins

G4S's integrated security strategy continues to differentiate our service offering in key markets and this contributed to an outstanding commercial performance in 2020, with new and retained contract wins with an annual revenue value of £3.0 billion compared with £2.5 billion in 2019. The total contract value associated with these wins was £5.5 billion and provides strong support for the Group's outlook.

Rule 26.1 Disclosure

In accordance with Rule 26.1 of the Takeover Code, a copy of this announcement will be available at www.G4S.com, by no later than 12 noon (London time) on the business day following this announcement. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.

^a Underlying results are Alternative Performance Measures (“APMs”) and exclude the results of all conventional cash businesses sold to The Brink’s Corporation on 26 February 2020, legacy onerous contracts, restructuring and cash separation costs, certain corporate defence and litigation costs and other specific and separately disclosed items. The basis of preparation of the Group’s APMs is set out on page 39 of the G4S Interim Results announcement of 23 July 2020.

For further enquiries, please contact:
Helen Parris	Director of Investor Relations	+44 (0) 207 9633189
Media enquiries:
Sophie McMillan	Head of Media	+44 (0) 759 5523483
Press office		+44 (0) 207 9633333

Media Advisers
Brunswick

Notes to Editors:
G4S is the leading global 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 85 countries and has 533,000 employees. For more information on G4S, visit www.g4s.com.