G4S presents 2018 segmental results reflecting the restatement for IFRS 16

3 July 2019

G4S presents 2018 segmental results reflecting the restatement for IFRS 16 – Leases, recent business disposals, re-classification of onerous contracts and foreign exchange rates

Ahead of the announcement of its half year 2019 results on 9 August 2019, to aid comparison with the results of prior periods, a summary of the Group’s results for H1 2018 and FY 2018 based on alternative performance measures, reflecting the adoption of IFRS 16 – Leases, businesses sold and the re-classification of onerous contracts, presented at average exchange rates for the six months ended 30 June 2019 is set out below:

The adoption of IFRS 16 had no material effect on the Group's net debt to EBITDA ratio, which remained at 2.7x at both 31 December 2018 and 30 June 2018.

Reconciliations from the segmental and total group results as previously reported, are set out at the end of this announcement.

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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 546,000 employees. For more information on G4S, visit www.g4s.com.

Statutory accounts:
This Statement is not the Group’s statutory accounts and should be read in conjunction with the Integrated Report and Accounts 2018, which is available at www.g4s.com. The Integrated Report and Accounts 2018 was reported on by the company’s auditor and delivered to the Registrar of Companies. The report of the auditor was (i) unqualified, (ii) did not contain a reference to any matters to which the auditor drew attention by emphasis of matter without qualifying their report, and (iii) did not contain any statement under section 498 (2) or (3) of the Companies Act 2006.

Reconciliation from segmental and total group results for the six months ended 30 June 2018 as previously reported

Reconciliation from segmental and total group results for the year ended 31 December 2018 as previously reported

a) 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 results in both the current and prior periods. These include the sales of the Cash Solutions businesses in the United Arab Emirates, Colombia and Saudi Arabia in H2 2018 as previously disclosed and the disposal of a business in Estonia in H1 2019.

b) As disclosed in the FY 2018 results, during H2 2018, the performance of one of the Group’s contracts previously reported within onerous contracts, with revenues of £21m in H1 2018, improved to the extent that it is expected to generate profits over the remainder of its term and was therefore re-classified to underlying results. In addition, two UK Care & Justice contracts with revenues of £15m in H1 2018, that were previously profitable and reported within underlying results, became loss-making and were re-classified to onerous contracts.

c) As explained on page 157 of the 2018 Integrated Report and Accounts, the Group adopted IFRS 16 – Leases with effect from 1 January 2019. The effect of adopting IFRS 16, as presented at 31 December 2018, was rounded to the nearest £5m and was subject to the Group completing its work in respect of onerous leases, foreign exchange rates, and a number of other items. The unaudited impact of the adoption of IFRS16 on the Group’s underlying results is presented above.

d) Adjusted PBITA is an Alternative Performance Measure as defined in page 41 of the 2018 Integrated Report and Accounts.