Underlying sales up 8.1% and improved organic growth of c.7%. Adjusted EPS 21.2p (excluding the Olympic Games contract)
- Organic growth of 10% in developing markets with revenue of £2,387m (33% of group total and targeting 50% by 2019)
- Group PBITA margin of 7.1%
- Commenced new contracts of c.£200m annual value with the UK government in 2012
- Vanguarda, Brazil acquisition announced in September performing in line with expectations
- Olympic Games contract loss of £70m and related costs of £18m result in exceptional loss of £88m
- Following a strategic review, G4S' US Government Solutions business classified as held for sale
- Achieved annual cash conversion of 95%, exceeding target of 85%
- Based on the positive organic growth outlook, the recommended full year dividend has been increased by 5% to 8.96p
Nick Buckles, Chief Executive Officer, commented:
"Our 2012 financial results reflect the significant exceptional costs associated with the Olympic contract and our overhead reduction programme together with the large impairment charge related to the discontinued US Government Solutions business.
Despite these issues, the underlying business has performed well in 2012 with an acceleration in organic turnover growth to 7% and with margins holding at over 7%. The acceleration in organic growth was due largely to a number of new North American commercial and UK government contracts and continued strong growth in developing markets and was achieved despite continued economic challenges in Europe.
Our developing markets business now accounts for a third of group revenues and continues to grow strongly and our recent acquisitions in Brazil, Vanguarda and Interativa, are performing well.
The breadth of our portfolio in over 125 countries continues to present many new growth opportunities and we continue to see good opportunities for outsourcing in key sectors such as government, financial institutions, aviation, oil and gas, mining and ports. Our market leading businesses, broad customer base and £3.5bn per annum contract pipeline give us confidence in the outlook for the group"
