27th Aug 2008 07:00
G4S plcInterim Results AnnouncementJanuary - June 2008
G4S plc, the international security solutions group, today announces its half year results for the six months to 30 June 2008.
RESULTS HIGHLIGHTS
- Very strong organic turnover growth* of 10.5% (2007: 7.5%)
- Group turnover* up 19.3% to ‚£2,697.3 million (2007:‚£2,261.5m)
- PBITA* up 19.4% to ‚£174.8 million (2007:‚£146.4m)
- Margin* maintained at 6.5%
- Cash flow generation up 35.6% to ‚£132.5 million, 77% of PBITA (2007: 71%)
- Adjusted earnings per share increased 26.3% to 7.2p (2007: 5.7p) and by 18% at constant exchange rates (2007:6.1p)
- Interim dividend up 30% to 2.75 pence per share, DKK 0.2572 (2007: 2.11p/DKK 0.2319)
- Invested ‚£533 million net in capability-building acquisitions and raised ‚£282 million via a share placing
- Good performance across all regions and business segments
- Excellent progress on the integration of GSL and ArmorGroup
- Expect to continue good performance for the full year
* at constant (2008) exchange rates
Nick Buckles, Chief Executive Officer, commented:
"Despite the well-reported difficulties in the economies of a number of international markets, trading is ahead of where we expected it to be at the half year - we have continued to deliver double digit organic growth and profit margins have held firm.
Adjusted earnings per share growth has been very strong at 26.3% and the integration of a number of major capability-building acquisitions is on schedule and on target to deliver the expected benefits and estimated synergy savings.
Overall, we have delivered an excellent performance for the first half of 2008 and we are very confident for the remainder of the year."
For further enquiries, please contact:
Nick Buckles - Chief Executive Officer +44 (0) 1293 554400 Trevor Dighton - Chief Financial Officer Helen Parris - Director of Investor Relations
Media enquiries:
Kevin Smith - Citigate Dewe Rogerson +44 (0) 7973 672649
High resolution images are available for the media to view and download free of charge from www.vismedia.co.uk
Notes to Editors:
G4S is the world's leading international security solutions group, which specialises in outsourced business processes in sectors where security and safety risks are considered a strategic threat.
G4S is the largest employer quoted on the London Stock Exchange and has a secondary stock exchange listing in Copenhagen. G4S has operations in over 110 countries and over 570,000 employees. For more information on G4S, visit www.g4s.com.
Presentation of Results:
A presentation to investors and analysts is taking place today at 0830hrs at the London Stock Exchange, 10 Paternoster Square, London, EC4M 7LS. The presentation will be webcast at:
http://www.investorcalendar.com/IC/CEPage.asp?ID=132364
A telephone dial-in facility is available on:
UK Access number +44 (0)20 8609 0581
UK Free phone* number 0800 358 1448
Denmark Toll free* number +45 808 870 69
US Toll free* number 1 866 388 1925
*If you are calling from a mobile phone your provider may charge you when connected to our toll free /free phone number.
FINANCIAL SUMMARY
Results
The results which follow have been prepared under International Financial Reporting Standards, as adopted by the European Union (adopted IFRSs).
Group Turnover
Turnover of Continuing Businesses H108 H107 ‚£m ‚£m
Turnover at constant exchange rates 2,697.3 2,261.5 Exchange difference
- (124.5)
Total continuing business turnover 2,697.3 2,137.0
Turnover, at constant exchange rates, increased by 19.3% to ‚£2,697.3 million. Organic turnover growth was 10.5%.
Organic Turnover Europe North America New Markets TotalGrowth *Security Services 9.5% 6.9% 17.4% 10.4%Cash Services 11.0% -2.6% 15.6% 10.6%Total 9.9% 6.2% 17.1% 10.5%
* Calculated to exclude acquisitions and disposals, and at constant exchange rates
Group Profit
PBITA * of Continuing Businesses H108 H107 ‚£m ‚£m
PBITA at constant exchange rates 174.8 146.4 Exchange difference
- (7.5)Total continuing business PBITA 174.8 138.9PBITA margin 6.5% 6.5%
* PBITA is defined as profit before interest, taxation and amortisation of acquisition-related intangible assets
Cash Flow and FinancingCash Flow H108 H107 ‚£m ‚£mOperating cash flow 132.5 97.7Operating cash flow / PBITA 77% 71%
Operating cash flow, as analysed on page 24, was up 35.6% to ‚£132.5 million in the period, representing 77% of PBITA. Net cash invested in acquistions was ‚£533.0 million. Net debt at the end of the period, as analysed on page 22, was ‚£1,134.2 million (June 2007:‚£801.5 m; December 2007: ‚£804.9m).
Adjusted earnings per share
Adjusted earnings per share H108 H107 at constant H107
exchange rates ‚£m ‚£m ‚£m PBITA from continuing 174.8 146.4 138.9operationsInterest (before pensions) (37.5) (27.8) (26.8)Tax (37.1) (33.6) (31.8)Minorities (5.7) (7.1) (7.1)Adjusted profit attributable 94.5 77.9 73.2to shareholdersAverage number of shares (m) 1,310.3 1,274.4 1,274.4Adjusted EPS (p) 7.2p 6.1p 5.7p
Adjusted earnings per share, reconciled to basic earnings per share on page 21, increased by 26.3%, or by 18.0% at constant exchange rates.
BUSINESS ANALYSISSecurity Services Turnover PBITA Margins Organic Growth ‚£m ‚£m * At constantexchange rates H108 H107 H108 H107 H108 H107 H108Europe * 1,054.1 874.1 64.6 53.0 6.1% 6.1% 9.5%North America * 570.8 518.2 30.8 27.8 5.4% 5.4% 6.9%New Markets * 509.4 379.5 38.9 31.1 7.6% 8.2% 17.4%Total Security 2,134.3 1,771.8 134.3 111.9 6.3% 6.3% 10.4%Services *Exchange - (95.8) - (5.3)differencesAt actual exchange 2,134.3 1,676.0 134.3 106.6rates
The security services business continued its strong performance with good organic growth of 10.4% and margins constant at 6.3%.
Europe Turnover PBITA Margins Organic Growth ‚£m ‚£m * At constant exchangerates H108 H107 H108 H107 H108 H107 H108UK & Ireland * 397.8 287.1 30.7 21.9 7.7% 7.6% 8.2%Continental Europe * 656.3 587.0 33.9 31.1 5.2% 5.3% 10.1%Total Europe * 1,054.1 874.1 64.6 53.0 6.1% 6.1% 9.5%
Organic growth in Europe was 9.5% and margins remained at 6.1%.
Organic growth increased from 6.2% in the prior year to 8.2% in the UK & Ireland with margins also improving assisted by higher UK manned security margins. New contracts won or commencing included security services for Shell and port security services with ABP Humberside. The care and justice business had a strong increase in electronic tagging and prisoner escorting volumes. In Belfast, a new state-of-the-art security system monitoring centre was opened, providing national and international monitoring services.
In addition a number of major capability-building acquisitions were completed including GSL, ArmorGroup and the RockSteady Group.
In Continental Europe, organic growth from continuing operations improved to 10.1%, compared to 6.5% in the prior year. Margins were slightly lower due to start up costs on two aviation contracts - a new contract at Oslo airport in Norway which successfully commenced operations in February and the Schiphol airport contract in the Netherlands which was retained under competitive rebid, against a new brief from the customer. Margins for the region should improve in the second half of 2008.
G4S concluded a further 25% buy out of the businesses in the Baltics taking the G4S holding to 90%, with the remaining 10% to be acquired in the second half of 2008. These businesses performed well with Lithuania and Estonia performing very strongly with excellent organic growth and strong margins. In Luxembourg and Belgium the businesses retained the European Parliament contracts for a further five years under competitive rebid.
Austria had strong organic growth assisted by security contracts for the 2008 European football championships. Sweden also saw a recovery in its organic growth with a positive margin impact.
In Greece, revenues and profits improved strongly on the same period last year. The business was awarded two major contracts to provide passenger screening services to four regional airports for three years, and a four year contract to provide security services to the Athens Metro.
In Serbia, the acquisition of Progard Securitas was completed in the first half of the year. Progard is the market leader and this acquisition will assist G4S expansion in the region and commence operations in Croatia, Montenegro and Macedonia through Progard's existing subsidiaries.
In Malta, the acquisition of ISecure in January 2008 enabled G4S Malta to enter the security systems market.
North America Turnover PBITA Margins Organic Growth ‚£m ‚£m
* At constant exchange H108 H107 H108 H107 H108 H107 H108 rates
North America * 570.8 518.2 30.8 27.8 5.4% 5.4% 6.9%
Organic growth in North America was 6.9% and margins were unchanged at 5.4%.
The United States achieved good margin improvement in the commercial sector through a reduction in non-billed overtime. This was offset by significant start-up costs related to new contracts in the government sector, in particular a large immigration monitoring contract for 27 cities. Organic growth of 6.9% was achieved despite commencing the transition out of the Exelon nuclear contract. Growth in WSI, the government business was double digit, assisted by contract additions such as security services for army bases, NYFPS and the Savannah River nuclear site.
RONCO, Touchcom and MJM were acquired during the first half and performed strongly and in line with our expectations.
Canada had an improved performance compared to the same period in 2007, with better margins in a continuing tough market.
New Markets Turnover PBITA Margins Organic Growth ‚£m ‚£m * At constant exchange H108 H107 H108 H107 H108 H107 H108rates Asia * 179.4 128.9 14.9 10.9 8.3% 8.5% 16.5%Middle East * 119.9 85.0 8.2 7.4 6.8% 8.7% 21.9%Africa * 111.3 85.9 9.6 7.4 8.6% 8.6% 13.9%Latin America & 98.8 79.7 6.2 5.4 6.3% 6.8% 17.8%Caribbean *Total New Markets * 509.4 379.5 38.9 31.1 7.6% 8.2% 17.4%
In New Markets, organic growth was very strong at 17.4% with margins slightly lower than the previous year due in part to the impact of the ArmorGroup acquisition on the Middle East results, together with the expected impact of the renegotiated Colombia tolls contract.
Organic growth in Asia was 16.5% and margins were slightly lower than the same period last year due to higher wage and fuel costs in some markets which we expect to pass on in the second half. Macau, Indonesia and Pakistan all achieved organic growth of over 20%. India has won some breakthrough contracts in the aviation and healthcare sectors. Thailand had organic growth above 20% assisted by new contracts in the aviation and financial services sectors.
In Bhutan there has been government approval for outsourcing of security services to G4S which should contribute to growth in the medium term. In March 2008 the business in Papua New Guinea became the preferred supplier to the United Nations for manned security of domestic and commercial buildings occupied by UN personnel, security systems monitoring and armed response services. In China the facilities management business performed well with organic growth of 38%. As expected, the government has indicated that the security industry is to be partially opened to foreign participation under new regulations.
In the Middle East there was organic growth of 21.9%, with particularly strong performances in Kuwait, Qatar and Saudi Arabia. All central costs for ArmorGroup have been assigned to Iraq and we expect these to be reduced over time through synergy benefits. In Egypt, G4S was awarded the Cairo Metro project which commenced earlier this month.
In Africa, organic growth was 13.9% and margins were maintained at the same level as the prior half year. The acquisition of ArmorGroup contributed to an expanding G4S footprint in Africa with current operations in nearly 30 countries. The acquisition has also enhanced the services provided to customers in the region, including the provision of security services to 17 US Embassies. Strong growth was achieved in Kenya, Namibia, Tanzania and Uganda. Morocco grew very strongly due to new security solutions contracts in the banking and oil industries with excellent margin improvements.
The Latin America and Caribbean region achieved organic growth of 17.8% and margins were 6.3%. The larger markets of Argentina, Guatemala and Peru continued to perform very well, with the renegotiated Colombia tolls contract impacting on margins as expected.
Cash Services Turnover PBITA Margins Organic Growth* At constant ‚£m ‚£mexchange rates H108 H107 H108 H107 H108 H107 H108Europe * 402.1 359.5 39.7 34.7 9.9% 9.7% 11.0%North America * 41.9 43.0 0.2 1.0 0.5% 2.3% -2.6%New Markets * 119.0 87.2 18.0 13.6 15.1% 15.6% 15.6%Total Cash 563.0 489.7 57.9 49.3 10.3% 10.1% 10.6%Services *Exchange - (28.7) - (2.3)differencesAt actual exchange 563.0 461.0 57.9 47.0rates
The cash services division performed well with organic growth of 10.6%. Margins were up slightly on the same period last year at 10.3% assisted by higher margins in Europe but partly offset by lower margins in Canada and New Markets.
Whilst there has been an increase in fuel costs across the business, we expect to recover these increased costs through our price increase programmes throughout the remainder of the year. The Retail Solutions technology is now fully tested and is in an active roll-out phase, with pilots in six countries and the first contracts being signed. The pilot sites and prospects in those countries represent an opportunity of 22,000 retail sites and we expect to have launched in at least ten countries by the end of 2008.
Organic growth in Europe was 11%. In the UK a major HBOS ATM contract has been fully implemented and the business has won significant new additional volumes in Scotland in both the retail and financial sectors. A new "superbranch" has opened in Bristol and the opening of an additional "superbranch" in central London is expected in the third quarter of 2008, which will rationalise a number of smaller branches in the London area, providing operational efficiencies.
Romania grew very strongly with the continued roll-out of bank outsourcing contracts. Greece achieved strong growth through ATM servicing and the Baltics also achieved excellent organic growth built on its strong market positions.
In Sweden, the Swedbank ATM management contract continues to be very successful, but is partly offset by the high operating and investment costs of national security regulations. In Belgium, significant organic growth came from a number of banks increasing their remote ATM estates.
Hungary had a very good first half as a result of growing cash volumes and continuing operating efficiencies, particularly at the Budapest cash centre.
In the Czech Republic, the business focused on improving the security aspects of its operations after a major robbery in December 2007. Significant investments in security technology have been made and the business is performing very well.
The business in Poland is continuing to improve following a major restructure based on terminating poorly performing contracts. They are continuing to win new contracts and additional volume in both cash management and transportation.
In Ireland a major new outsourced contract for An Post (the Post Office) is currently being implemented, and this will provide additional growth.
Following the restructuring of the Canada business as a consequence of banking contract losses in Ontario in 2007, the business is running on a stable operational platform. Following a branch and route rationalisation project, an improved second half financial performance is expected.
G4SI, the international valuables business, achieved strong growth, particularly in the precious metals and banknote sectors. G4SI has won major new precious metal mine contracts in South America and Africa, and the outlook for this sector remains very positive.
In New Markets, organic growth was 15.6% and margins were down slightly at 15.1% as a result of the renegotiated Colombia tolls contract. There were continued strong results in Malaysia with organic growth of nearly 20% from the growth of ATMs and cash deposit machines. In Thailand, the business signed three new contracts - two for cash transport and management and one for the servicing of 400 ATMs. The South Africa cash services business acquired in March 2007 also grew nearly 20% from both the finance and retail sectors with improved margins. Kenya performed well with organic growth of nearly 15% despite a difficult start to the year following the political unrest in January. Saudi Arabia grew very strongly through ATM servicing.
OTHER FINANCIAL ISSUES
Acquisitions and divestments
Our strategy implementation continues to move ahead at a good pace and we have selected a number of countries as priorities for the capability-building approach to driving accelerated growth and development that we outlined to the market towards the end of 2007.
We have completed a number of acquisitions during the first half of 2008 including ArmorGroup, one of the world's leading protective security companies, on 7 May and GSL, an international leader in the provision of government support services, on 12 May. The group has been running detailed worldwide integration programmes since completion of the acquisitions with the objective of fully integrating GSL and ArmorGroup within the next six months. That process is progressing well with management teams focused on delivering the planned business performance and synergies.
The GSL businesses are currently being integrated into the G4S UK & Ireland region to create a significantly stronger UK Care and Justice business as well providing additional secure outsourcing capability in the UK government sector. At the time of the GSL acquisition we announced that we expected to achieve cost synergies of around ‚£7 million. We expect the costs of achieving these synergies to be charged in 2008, with the full effect of the synergy benefits coming through in 2009.
The majority of ArmorGroup's 27 country operations have now been merged into the relevant G4S regions. The UK elements of ArmorGroup have been merged with G4S Risk Management Solutions to create a business which focuses on government contracts in Afghanistan, Iraq and Kosovo as well as the provision of mine clearance, training and risk management consultancy.
The opportunity to acquire further capability-building businesses across the group's international footprint continues to be strong and we expect to make further acquisitions in both developed and New Markets in areas such as secure facilities management, cash solutions, data and document management and risk management consulting in the second half of the year.
At the end of 2007, we signalled our intention to divest of our remaining businesses in France and Germany. The majority of these businesses have now been divested. We expect the remaining manned security business in France to be divested by the end of the year.
Risks and uncertainties
A discussion of the group's risk assessment and control processes and the principal risks and uncertainties that could affect the business activities or financial results are detailed on pages 20 and 21 of the company's annual report for the financial year ended 31 December 2007, a copy of which is available on the group website www.g4s.com.
The risks and uncertainties are expected to be the same during the remaining six months of the financial year.
Share capital
On 13 May 2008 the group completed a placing of 127 million ordinary shares of 25p at a price of 222p per share. Gross proceeds were ‚£281.9 million and issue costs ‚£5.9 million.
Financing & Interest
The group's primary source of finance is a ‚£1.1billion multicurrency revolving credit facility provided by a consortium of lending banks at a margin of 0.225% over LIBOR and maturing on 28 June 2012.
During the period the group also had US$550 million in financing from the private placement of notes, maturing at various dates between 2014 and 2022 and bearing interest at rates between 5.77% and 6.06%.
At 30 June 2008 the group had other short-term committed facilities of ‚£45 million and uncommitted facilities of ‚£481 million. It also had additional committed facilities amounting to ‚£350 million, bearing interest at a margin of 0.60% over LIBOR and expiring on 31 December 2008.
On 15 July 2008 the group completed a further $514 million and ‚£69 million private placement of notes, which mature at various dates between 2013 and 2020 and bear interest at rates between 6.09% and 7.56%. At the same date, the additional ‚£350 million committed facilities referred to above were cancelled.
As of 30 June 2008, net debt was ‚£1,134.2 million representing a gearing of 80%. The group has sufficient borrowing capacity to finance current investment plans.
Net interest payable on net debt was ‚£37.5 million. This is an increase of 40% over the 2007 cost of ‚£26.8 million, due principally to the increase in the group's average gross debt.
Also included within financing is net income of ‚£2.5 million (2007: ‚£2.8 million) in respect of movements in the group's retirement benefit obligations.
Taxation
Tax has been provided at the estimated effective tax rate for the full year of 27.0% on adjusted earnings, compared to 27.5% for the full year in 2007. The group believes that this rate is sustainable going forward.
Retirement benefit obligations
The group's funding shortfall on funded defined retirement benefit schemes, on the valuation basis specified in IAS19 Employee Benefits, was ‚£149 million before tax or ‚£107 million after tax (31 December 2007: ‚£136 million and ‚£98 million respectively). The main schemes are in the UK. The latest full actuarial valuations were undertaken at 5 April 2006 in respect of the Securicor scheme and 31 March 2007 in respect of the Group 4 scheme.
The valuation of gross liabilities has decreased since 31 December 2007 due to an increase in the appropriate AA corporate bond rate from 5.8% to 6.6%. However, the value of the assets held in the funds (adjusted for acquired pension funds and additional contributions) decreased by ‚£97 million during the period. Additional company contributions were ‚£25 million and a further ‚£2 million of additional contributions is payable in the second half of the year.
The group believes that, over the very long term in which retirement benefits become payable, investment returns should eliminate the deficit reported in the schemes in respect of past service liabilities. However, in recognition of the regulatory obligations upon pension fund trustees to address reported deficits, the group anticipates that, in the medium term, additional cash contributions will continue to be made at least at a level similar to that in 2008.
Dividend
The Board has declared an interim dividend for 2008 of 2.75p per share (DKK 0.2572) payable on 31 October 2008. This represents an increase of 30% on the interim dividend for 2007 and a prospective dividend cover of 2.5 times (2007: 2.7 times) on adjusted earnings for the year.
REVIEW AND OUTLOOK
Trading for the first half of the year was ahead of our expectations and we have continued to achieve double digit organic growth and good margins despite the general economic difficulties in some key countries across the world.
This strong trading performance, along with our strategy of acquiring capability-building businesses and driving through the relevant synergy benefits from major acquisitions, provides us with confidence for the second half.
As well as growing earnings per share by 26.3% we have also increased dividend per share by 30%, further reflecting the continued strong momentum of the business.
The opportunity to acquire further capability-building businesses across the group's international footprint continues to be strong and we hope to make further focussed acquisitions in developed and in New Markets including areas such as secure facilities management, cash solutions, data and document management and risk management in the second half of the year.
Our strategy implementation continues to move ahead at a good pace and we have selected a number of countries as our priorities for moving forward to drive accelerated growth and development that we outlined to the market towards the end of 2007.
Overall, we have had an excellent performance for the first half of 2008 and are very confident for the remainder of the year.
27 August 2008
G4S plc
Unaudited interim results announcementFor the six months ended 30 June 2008
Directors' responsibility statement in respect of the interim results announcement
We confirm that to the best of our knowledge:
- this condensed set of financial statements has been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting as adopted by the EU;
- the Interim Management Report includes a fair review of the information required by:
(a) DTR 4.2.7R of the Disclosure Rules and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year ending 31 December 2008 and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the financial year ending 31 December 2008 and that have materially affected the financial position or performance of G4S Plc during that period; and any changes in the related party transactions described in the Annual Report 2007 that could do so.
The responsibility statement is signed by:
Nick Buckles Trevor Dighton
Chief Executive Chief Financial Officer
G4S plc
Unaudited interim results announcementFor the six months ended 30 June 2008Consolidated income statementFor the six months ended 30 June 2008 Six months Six months Year ended ended ended 30.06.08 30.06.07 31.12.07 Notes ‚£m ‚£m ‚£m Continuing operations Revenue 2 2,697.3 2,137.0 4,483.5 Profit from operations before amortisation ofacquisition-related intangible assets and shareof profit from associates 173.0 137.5 308.4Share of profit from associates 1.8 1.4 3.0 Profit from operations before amortisation ofacquisition-related intangible assets (PBITA) 2 174.8 138.9 311.4 Amortisation of acquisition-related intangible (30.4) (18.9) (41.6)
assets
Profit from operations before interest and 2, 3 144.4 120.0 269.8taxation (PBIT) Finance income 6 50.0 44.6 92.6Finance costs 7 (85.0) (68.6) (146.3) Profit from operations before taxation (PBT) 109.4 96.0 216.1
Taxation:
- Before amortisation of acquisition-related intangible (37.8) (32.6) (70.9)
assets
- On amortisation of acquisition-related 8.5 5.5 14.9
intangible assets
8 (29.3) (27.1) (56.0) Profit from continuing operations after taxation 80.1 68.9 160.1 (Loss)/profit from discontinued operations 4 - (0.5) 0.5 Profit for the period 80.1 68.4 160.6 Attributable to:Equity holders of the parent 74.4 61.3 147.2Minority interests 5.7 7.1 13.4 Profit for the period 80.1 68.4 160.6 Earnings per share attributable to ordinary 9equity shareholders of the parent from continuing and discontinued operations Basic 5.7p 4.8p 11.5pDiluted 5.7p 4.8p 11.5p Dividends declared and proposed in respect of theperiod 10Interim dividend of 2.75p per share (2007: 2.11p 38.7 27.0 27.3per share)Final dividend (2007: 2.85p per share) - - 36.3Total 38.7 27.0 63.6Condensed consolidated balance sheetAs at 30 June 2008 As at As at As at 30.06.08 30.06.07 31.12.07 Notes ‚£m ‚£m ‚£mASSETS Non-current assetsGoodwill 1,702.8 1,273.2 1,336.0Other acquisition-related intangible assets 425.1 229.6 222.5Other intangible assets 37.9 22.5 31.3Property, plant and equipment 459.5 358.4 401.7Investment in associates 3.0 9.6 10.2Trade and other receivables 143.9 118.5 153.8 2,772.2 2,011.8 2,155.5 Current assetsInventories 72.3 52.3 57.9Investments 72.3 72.8 73.2Trade and other receivables 1,085.0 863.3 886.0Cash and cash equivalents 446.6 306.9 381.3Assets classified as held for sale 11 111.1 22.3 130.9 1,787.3 1,317.6 1,529.3 Total assets 4,559.5 3,329.4 3,684.8 LIABILITIES Current liabilitiesBank overdrafts (127.1) (97.1) (109.9)Bank loans (59.8) (44.3) (80.6)Obligations under finance leases (19.0) (12.5) (16.2)Trade and other payables (950.0) (756.9) (868.2)Provisions (137.8) (72.1) (72.9)Liabilities associated with assets classified as 11 (74.8) (13.2) (78.3)held for sale (1,368.5) (996.1) (1,226.1) Non-current liabilitiesBank loans (1,112.5) (713.6) (729.1)Loan notes (290.8) (274.1) (290.4)Obligations under finance leases (61.1) (40.3) (46.0)Trade and other payables (37.1) (30.1) (38.7)Provisions (272.5) (176.5) (231.5) (1,774.0) (1,234.6) (1,335.7) Total liabilities (3,142.5) (2,230.7) (2,561.8) Net assets 1,417.0 1,098.7 1,123.0 EQUITY Share capital 352.1 320.2 320.2Share premium and reserves 1,030.1 748.0 766.9Equity attributable to equity holders of the 12 1,382.2 1,068.2 1,087.1parentMinority interests 34.8 30.5 35.9Total equity 1,417.0 1,098.7 1,123.0Condensed consolidated cash flow statementFor the six months ended 30 June 2008 Six months Six months Year ended ended ended 30.06.08 30.06.07 31.12.07 Notes ‚£m ‚£m ‚£m Profit from continuing operations before taxation 109.4 96.0 216.1Loss/(profit) from discontinued operations before - (0.4)taxation 0.4 Adjustments for:Finance income (50.0) (44.6) (92.6)Finance costs 85.0 68.6 146.3Finance costs attributable to discontinued 1.9 1.0 3.3
operations
Depreciation of property, plant and equipment 48.9 44.0 91.1Amortisation of acquisition-related intangible 30.4 18.9 41.6
assets
Amortisation of other intangible assets 4.8 3.8 8.5Other operating cash flow movements 1.1 - (25.3)Operating cash flow before movements in working 231.5 187.3 389.4capital Net working capital movement (64.1) (71.6) (31.9)Cash generated by operations 167.4 115.7 357.5 Tax paid (37.9) (29.8) (66.2)Net cash flow from operating activities 129.5 85.9 291.3 Investing activitiesInterest received 7.7 7.1 24.9Cash flow from/(to) associates 9.5 (0.4) 1.0Net cash flow from capital expenditure (61.1) (44.2) (109.0)Net cash flow from acquisitions and disposals (308.0) (98.7) (132.1)Sale/(purchase) of trading investments 1.9 (2.3) (0.3)Own shares purchased (4.5) - (3.1)Net cash used in investing activities (354.5) (138.5) (218.6) Financing activitiesShare issues 276.8 0.9 0.9Dividends paid to minority interests (3.4) (0.5) (3.8)Loan to minority interests (4.2) - (13.3)Dividends paid to equity shareholders of the (36.4) (32.0)parent (59.3)Net increase in borrowings 129.4 122.8 140.4Interest paid (50.4) (30.6) (79.9)Net cash flow from translation hedging financial (39.0) (2.2)instruments (4.3)Repayment of obligations under finance leases (4.8) (5.8) (4.6)Net cash flow from financing activities 268.0 52.6 (23.9) Net increase in cash, cash equivalents and bankoverdrafts 13 43.0 - 48.8 Cash, cash equivalents and bank overdrafts at the 270.7 210.0 210.0beginning of the period Effect of foreign exchange rate fluctuations on 8.6 - 11.9cash held Cash, cash equivalents and bank overdrafts at the 322.3 210.0 270.7
end of the period
Consolidated statement of recognised income and expense For the six months ended 30 June 2008
Six months Six months Year ended ended ended 30.06.08 30.06.07 31.12.07 ‚£m ‚£m ‚£m Exchange differences on translation of foreign 25.8 (2.7) 37.4
operations
Actuarial (losses)/gains on defined retirement (56.5) 147.1 64.7benefit schemesChange in fair value of cash flow hedging 5.0 4.0 (7.0)financial instrumentsChange in fair value of net investment hedging (19.1) 0.3 (19.0)financial instrumentsTax on items taken directly to equity 27.5 (47.4) (14.0)Net income/(expense) recognised directly in (17.3) 101.3 62.1equityProfit for the period 80.1 68.4 160.6Net recognised income 62.8 169.7 222.7 Attributable to:Equity holders of the parent 57.1 162.6 209.3Minority interests 5.7 7.1 13.4Net recognised income 62.8 169.7 222.7
Notes to the interim results announcement
1) Basis of preparation and accounting policies
These condensed financial statements comprise the unaudited interim consolidated results of G4S plc ("the group") for the six months ended 30 June 2008. These interim financial results do not comprise statutory accounts within the meaning of Section 240 of the Companies Act 1985 and should be read in conjunction with the Annual Report and Accounts 2007.
The comparative figures for the financial year ended 31 December 2007 are not the company's statutory accounts for that year. Those accounts have been 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 237 of the Companies Act 1985.
The condensed financial statements of the group presented in this interim announcement have been prepared in accordance with IAS 34 Interim Financial Reporting, and with the Disclosure and Transparency Rules of the Financial Services Authority. The accounting policies applied are the same as those set out in the group's Annual Report and Accounts 2007.
The financial information in these condensed financial statements for the half years to 30 June 2008 and 30 June 2007 have been neither audited nor verified.
The comparative income statement for the six months ended 30 June 2007 has been re-presented for operations qualifying as discontinued during the six months ended 31 December 2007 and the six months ended 30 June 2008. The comparative income statement for the year ended 31 December 2007 has been re-presented for operations qualifying as discontinued during the six months ended 30 June 2008. For the six months ended 30 June 2007, revenue has been reduced by ‚£126.9m and PBT has been increased by ‚£0.4m compared to the figures published previously. For the year ended 31 December 2007, revenue has been reduced by ‚£6.9m and PBT has been reduced by ‚£0.7m compared to the figures published previously.
The comparative balance sheet as at 30 June 2007 has been restated to reflect the completion during the six months ended 31 December 2007 and the six months ended 30 June 2008 of the initial accounting in respect of acquisitions made during the six months ended 30 June 2007. Adjustments made to the provisional calculation of fair values of assets and liabilities acquired and the consideration payable amount to ‚£8.6m, with an equivalent increase in the reported value of goodwill.
The comparative balance sheet as at 31 December 2007 has been restated to reflect (i) the completion during the six months ended 30 June 2008 of the initial accounting in respect of acquisitions made during the six months ended 30 June 2007, and (ii) adjustments made in the six months to 30 June 2008 to the preliminary assessment of the fair values of assets and liabilities acquired during the six months ended 31 December 2007. Adjustments made to the provisional calculation of the fair values of assets and liabilities acquired and the consideration payable amount to ‚£3.6m, with an equivalent increase in the reported value of goodwill.
2) Segmental analysis
The group operates in two core product areas: security services and cash services. The group operates on a worldwide basis and derives a substantial proportion of its revenue and profits from each of the following geographic regions: Europe (comprising the United Kingdom and Ireland, and Continental Europe), North America, and New Markets (comprising the Middle East and Gulf States, Latin America and the Caribbean, Africa, and Asia Pacific).
The current management structure of the group is a combination of product area and geography, within which the larger businesses generally report by product area. The group's primary segmentation is therefore by business segment and its secondary segmentation is by geography.
Notes to the interim results announcement (continued)
Segment information for continuing operations is presented below:
Segment revenue Six months Six months Year ended ended ended 30.06.08 30.06.07 31.12.07 ‚£m ‚£m ‚£m Security ServicesUK and Ireland 397.8 283.9 593.0Continental Europe 656.3 508.2 1,078.3Europe 1,054.1 792.1 1,671.3North America 570.8 515.8 1,043.8Middle East and Gulf States 119.9 84.7 177.9Latin America and the Caribbean 98.8 75.0 158.0Africa 111.3 84.6 183.9Asia Pacific 179.4 123.8 268.9New Markets 509.4 368.1 788.7Total Security Services 2,134.3 1,676.0 3,503.8 Cash ServicesEurope 402.1 337.3 706.3North America 41.9 38.4 78.0New Markets 119.0 85.3 195.4Total Cash Services 563.0 461.0 979.7Total revenue 2,697.3 2,137.0 4,483.5Segment result Six months Six months YearPBITA by business segment ended ended ended 30.06.08 30.06.07 31.12.07 ‚£m ‚£m ‚£m Security ServicesUK and Ireland 30.7 21.8 48.4Continental Europe 33.9 27.0 61.5Europe 64.6 48.8 109.9North America 30.8 27.7 61.5Middle East and Gulf States 8.2 7.4 14.2Latin America and the Caribbean 6.2 4.9 10.3Africa 9.6 7.1 16.0Asia Pacific 14.9 10.7 22.9New Markets 38.9 30.1 63.4Total Security Services 134.3 106.6 234.8 Cash ServicesEurope 39.7 32.8 77.4North America 0.2 0.9 0.6New Markets 18.0 13.3 29.0Total Cash Services 57.9 47.0 107.0Total PBITA before head office costs 192.2 153.6 341.8Head office costs (17.4) (14.7) (30.4)Total PBITA 174.8 138.9 311.4 Result by business segment Total PBITA 174.8 138.9 311.4Amortisation of acquisition-related intangible assets (30.4) (18.9) (41.6)Total PBIT 144.4 120.0 269.8 Security Services 115.9 98.2 215.4Cash Services 45.9 36.5 84.8Head office costs (17.4) (14.7) (30.4)Total PBIT 144.4 120.0 269.8
Notes to the interim results announcement (continued)
3) Profit from operations before interest and taxation
The income statement can be analysed as follows:
Six months Six months Year ended ended endedContinuing operations 30.06.08 30.06.07 31.12.07 ‚£m ‚£m ‚£m Revenue 2,697.3 2,137.0 4,483.5Cost of sales (2,108.7) (1,660.3) (3,479.2)Gross profit 588.6 476.7 1,004.3Administration expenses (446.0) (358.1) (737.5)Share of profit from associates 1.8 1.4 3.0Profit from operations before interest and 144.4 120.0 269.8taxation
Included within administration expenses is the amortisation charge for acquisition-related intangible assets.
4) Discontinued operations
Operations qualifying as discontinued in the current period primarily comprise the security services business in Germany, which principally comprises G4S Sicherheitsdienste GmbH and G4S Sicherheitssysteme GmbH, disposed of on 15 May 2008, and the security services business in France, which principally comprises Group 4 Securicor SAS, the disposal of which is still in progress. Further operations qualifying as discontinued in the prior year primarily comprise G4S Cash Services (France) SAS, disposed of on 2 July 2007.
Notes to the interim results announcement (continued)
5) Acquisitions
Current Period Acquisitions
The most significant acquisition in subsidiary undertakings in the period was the purchase of De Facto 1119 Limited, the holding company of the Global Solutions group ("GSL") an international leader in the provision of support services for governments, companies and public authorities, based in the UK, which was completed on 12 May 2008. Other principal acquisitions in subsidiary undertakings in the period include the purchases of ArmorGroup International plc, an international provider of defensive, protective security services, head-quartered in the UK; Touchcom, Inc., a security consultancy and design business in the US; RONCO Consulting Corporation, an international provider of humanitarian mine action and ordnance services, specialised security and training, head-quartered in the US; MJM Investigations, Inc., a provider of insurance fraud mitigation and claims services in the US; the Rock Steady group of companies, providing event security in the UK; and Travel Logistics Limited, a provider of passport and visa services in the UK. In addition, the group completed the acquisition of a further 25% of Aktsiaselts G4S Baltics, increasing to 90% its holding in this company, the holding company of the G4S subsidiaries in Estonia, Latvia and Lithuania, which provide both security services and cash services. This transaction was largely accrued at 31 December 2007 through the recognition of a put option. The group also acquired the 49% of G4S Macau Limitada, a provider of both security services and cash services that it did not already own.
The following table sets out the book values and provisional fair values at acquisition of the identifiable assets and liabilities acquired by the group during the period:
Fair value Book value adjustments Fair value ‚£m ‚£m ‚£mAcquisition-related intangible assets 2.9 231.1 234.0Other intangible assets 2.2 - 2.2Investment in associates 2.9 (1.0) 1.9Property, plant and equipment 40.7 (7.6) 33.1Inventories 4.1 (0.1) 4.0Trade and other receivables 125.3 4.6 129.9Deferred tax assets 7.5 (1.7) 5.8Cash and cash equivalents 16.0 1.0 17.0Trade and other payables (116.3) (7.6) (123.9)Provisions 4.3 (18.6) (14.3)Borrowings (224.7) (0.3) (225.0)Deferred tax liabilities (1.2) (65.9) (67.1)
Net assets acquired of subsidiary undertakings (136.3) 133.9 (2.4) Acquisition of minority interests
3.9 - 3.9Goodwill 342.2Total purchase consideration 343.7 Satisfied by:Cash 314.4Transaction costs 10.5Contingent consideration 18.8Total purchase consideration 343.7
Adjustments made to identifiable assets and liabilities on acquisition are to reflect their fair value. These include the recognition of customer-related intangible assets amounting to ‚£231.1m attributable to the acquisition of subsidiary undertakings. The fair values of net assets acquired are provisional and represent estimates following a preliminary valuation exercise. These estimates may be adjusted to reflect refinements in their calculation and any development in the issues to which they relate. Final fair value adjustments will, if required, be set out in the group's 2008 Annual Report and Accounts and/or in the group's 2009 Annual Report and Accounts as appropriate.
The goodwill arising on acquisitions can be ascribed to the existence of a skilled, active workforce and the opportunities to obtain new contracts and develop the business. Neither of these meets the criteria for recognition as intangible assets separable from goodwill. Goodwill arising on acquisition includes ‚£13.7m arising on the acquisition of minority interests.
Notes to the interim results announcement (continued)
5) Acquisitions (continued)
From their respective dates of acquisition, the acquired businesses' contribution to the results of the group for the period was as follows:
Contribution from acquired businesses Revenue PBITA Profit
‚£m ‚£m ‚£mGSL 79.5 5.8 2.4ArmorGroup 27.2 0.9 0.2Touchcom 0.7 - -RONCO 10.4 1.0 0.5MJM 4.8 0.2 -Rock Steady 3.5 0.4 0.1Travel Logistics 3.2 0.6 0.3Others 3.1 0.5 0.4
Total contribution from acquired businesses 132.4 9.4 3.9
If all the acquisitions had occurred on 1 January 2008 the results of the group for the period would have been as follows:
Group's results if all acquisitions had occurred on 1 January 2008
Revenue PBITA Profit ‚£m ‚£m ‚£mGroup results for the period 2,697.3 174.8 80.1Impact of backdating acquisitions to 1 January 2008GSL 159.0 13.6 5.3ArmorGroup 54.4 1.8 0.5Touchcom 3.5 - (0.2)RONCO 20.8 2.0 1.0MJM 4.8 0.2 -Rock Steady 3.5 0.4 0.3Travel Logistics 0.7 0.1 0.1Others 4.9 0.9 0.3
Group result for the period if all acquisitions had 2,948.9 193.8 87.4 occurred on 1 January 2008
Acquisition of GSL
The separately identifiable assets and liabilities of GSL as at the acquisition date are presented in the table below.
Fair value Book value adjustments Fair value ‚£m ‚£m ‚£mAcquisition-related intangible assets - 182.8 182.8Investment in associates 2.9 (1.1) 1.8Property, plant and equipment 20.6 (7.3) 13.3Inventories 0.6 - 0.6Trade and other receivables 67.0 6.3 73.3Deferred tax assets 4.5 (1.7) 2.8Cash and cash equivalents 7.1 1.0 8.1Trade and other payables (82.9) (4.6) (87.5)Provisions 4.4 3.6 8.0Borrowings (206.9) (0.4) (207.3)Deferred tax liabilities - (51.1) (51.1)Minority interests (0.4) - (0.4)Net assets acquired of subsidiary undertakings (183.1) 127.5 (55.6)Goodwill 230.2Total purchase consideration 174.6 Satisfied by:Cash 167.8Transaction costs 6.8Total purchase consideration 174.6
Notes to the interim results announcement (continued)
5) Acquisitions (continued)
Prior period acquisitions
The purchase consideration and provisional fair values of acquisitions made during the financial year to 31 December 2007 and their contribution to the group's results for the year are set out in the group's Annual Report and Accounts 2007. Adjustments made during the six months to 30 June 2008 to the provisional calculation of the fair values of assets and liabilities acquired and the consideration payable during the year to 31 December 2008 amount to ‚£3.6m, with an equivalent increase in the reported value of goodwill.
6) Finance income Six months Six months Year ended ended ended 30.06.08 30.06.07 31.12.07 ‚£m ‚£m ‚£m Interest receivable 7.1 5.8 15.1Expected return on defined retirement benefit 42.9 38.8 77.3scheme assetsNet gain in fair value adjustments arising from - - 0.2loan note hedgingTotal finance income 50.0 44.6 92.67) Finance costs Six months Six months Year ended ended ended 30.06.08 30.06.07 31.12.07 ‚£m ‚£m ‚£m Total group borrowing costs (44.6) (32.6) (74.0)Finance costs on defined retirement benefit (40.4) (36.0) (72.3)obligationsTotal finance costs (85.0) (68.6) (146.3)8) Taxation Six months Six months Year ended ended ended 30.06.08 30.06.07 31.12.07 ‚£m ‚£m ‚£m UK taxation (4.2) (3.1) (8.2)Overseas taxation (25.1) (24.0) (47.8)Total taxation expense (29.3) (27.1) (56.0)
Notes to the interim results announcement (continued)
9) Earnings per share attributable to ordinary shareholders of the parent
Six months Six months Year ended ended ended 30.06.08 30.06.07 31.12.07 ‚£m ‚£m ‚£m
From continuing and discontinued operations
Earnings
Profit for the period attributable to equity holders of the parent 74.4 61.3 147.2Effect of dilutive potential ordinary shares (net of tax) 0.1 0.1 0.2Profit for the purposes of diluted earnings per share 74.5 61.4 147.4 Number of shares (m)Weighted average number of ordinary shares 1,310.3 1,274.4 1,275.2Effect of dilutive potential ordinary shares 1.4 1.4 1.5Weighted average number of ordinary shares forthe purposes of diluted earnings per share 1,311.7 1,275.8 1,276.7 Earnings per share from continuing and discontinuedoperations (pence)Basic 5.7p 4.8p 11.5pDiluted 5.7p 4.8p 11.5p From adjusted earnings EarningsProfit for the period attributable to equity holders of the parent 74.4 61.3 147.2Adjustment to exclude loss/(profit) from discontinued operations - 0.5 (0.5)Adjustment to exclude net retirement benefitfinance income (net of tax) (1.8) (2.0) (3.6)
Adjustment to exclude amortisation of acquisition-related intangible assets (net of tax)
21.9 13.4 26.7Adjusted profit for the period attributable to equity holders of the parent 94.5 73.2 169.8 Weighted average number of ordinary shares (m) 1,310.3 1,274.4 1,275.2Adjusted earnings per share (pence) 7.2p 5.7p 13.3p10) Dividends Six months Six months Year ended ended ended Pence DKK 30.06.08 30.06.07 31.12.07 per share per share ‚£m ‚£m ‚£m Amounts recognised as distributionsto equity holders of the parent inthe period Final dividend for the year ended 31 December 2006 2.52 0.2766 - 32.0 32.0Interim dividend for the six monthsended 30 June 2007 2.11 0.2319 - - 27.3Final dividend for the year ended 31 December 2007 2.85 0.2786 36.4 - -Total 36.4 32.0 59.3
An interim dividend of 2.75p (DKK 0.2572) per share, amounting to ‚£38.7m, for the six months ended 30 June 2008 will be paid on 31 October 2008 to shareholders on the register on 26 September 2008.
11) Disposal groups classified as held for sale
Disposal groups classified as held for sale at 30 June 2008 primarily comprise the assets and liabilities associated with the security services businesses in France, which principally include Group 4 Securicor SAS. At 31 December 2007 disposal groups classified as held for sale also included the assets and liabilities associated with the security services businesses in Germany, which principally include G4S Sicherheitsdienste GmbH and G4S Sicherheitssysteme GmbH.
Notes to the interim results announcement (continued)
12) Reconciliation of equity attributable to equity holders of the parent
Six months Six months Year ended ended ended 30.06.08 30.06.07 31.12.07 ‚£m ‚£m ‚£m At beginning of period 1,087.1 935.2 935.2Net recognised income attributable to equityshareholders of the parent 57.1 162.6 209.3Shares issued 276.8 0.9 0.9Dividends declared (36.4) (32.0) (59.3)Own shares purchased (4.5) - (3.1)Equity settled transactions 2.1 1.5 4.1At end of period 1,382.2 1,068.2 1,087.1
On 13 May 2008 the group completed a placing of 127m ordinary shares of 25p at a price of 222p per share. Gross proceeds were ‚£281.9m and issue costs ‚£5.9m. The placing enabled the group to reduce borrowings incurred in connection with its expenditure on acquisitions during the period and increased its capacity to make further acquisitions.
13) Analysis of net debt
A reconciliation of net debt to amounts in the condensed consolidated balancesheet is presented below: As at As at As at 30.06.08 30.06.07 31.12.07 ‚£m ‚£m ‚£m Cash and cash equivalents 446.6 306.9 381.3Investments 72.3 72.8 73.2Net debt included within assets held for sale 2.7 0.7 (1.5)Current liabilitiesBank overdrafts and loans (186.9) (141.4) (190.5)Obligations under finance leases (19.0) (12.5) (16.2)Fair value of loan note derivative financial 14.5 - 14.3
instruments
Non-current liabilitiesBank loans (1,112.5) (713.6) (729.1)Loan notes (290.8) (274.1) (290.4)Obligations under finance leases (61.1) (40.3) (46.0)Total net debt (1,134.2) (801.5) (804.9)
An analysis of movements in net debt in the period is presented below:
Six months Six months Year ended ended ended 30.06.08 30.06.07 31.12.07 ‚£m ‚£m ‚£m Increase in cash, cash equivalents and bank overdrafts per condensed consolidated cash flowstatement 43.0 - 48.8(Sale)/ purchase of investments (1.9) 2.3 0.3Increase in debt and lease financing (124.6) (117.0) (135.8)Change in net debt resulting from cash flows (83.5) (114.7) (86.7) Borrowings acquired with subsidiaries (225.0) (19.9) (22.9)Net additions to finance leases (8.3) (3.6) (10.3)Movement in net debt in the period (316.8) (138.2) (119.9) Translation adjustments (12.5) 9.5 (12.2)Net debt at the beginning of the period (804.9) (672.8) (672.8)Net debt at the end of the period (1,134.2) (801.5) (804.9)
Notes to the interim results announcement (continued)
14) Related party transactions
No related party transactions have taken place in the first six months of the current financial year which have materially affected the financial position or the performance of the group during that period. The nature and amounts of related party transactions in the first six months of the current financial year are consistent with those reported in the group's Annual Report and Accounts 2007.
15) Events after the balance sheet date
On 15 July 2008, to further diversify its sources of funding and to lengthen the maturity of its debt, the group completed a $541m and ‚£69m private placement of unsecured senior loan notes. The proceeds of the issue were used to reduce drawings against the revolving credit bank facility.
Non GAAP measure - cash flow
The directors consider it is of assistance to shareholders to present an analysis of the group's operating cash flow in accordance with the way in which the group is managed, together with a reconciliation of that cash flow to the net cash flow from operating activities as presented in the condensed consolidated cash flow statement.
Operating cash flowFor the six months ended 30 June 2008 Six months Six months Year ended ended ended 30.06.08 30.06.07 31.12.07 ‚£m ‚£m ‚£m PBITA before share of profit from associates 173.0 137.5 308.4(group PBITA)
Depreciation and amortisation of intangible assets other than acquisition-related
53.7 47.6 99.6Profit on disposal of property, plant andequipment and intangible assets other thanacquisition-related - - (14.4)Increase in working capital and provisions (33.1) (43.2) (8.2)Net cash flow from capital expenditure (61.1) (44.2) (109.0)Operating cash flow 132.5 97.7 276.4
Reconciliation of operating cash flows
Six months Six months Year ended ended ended 30.06.08 30.06.07 31.12.07 ‚£m ‚£m ‚£m
Net cash flow from operating activities per condensed consolidated cash flow statement
129.5 85.9 291.3Net cash flow from capital expenditure (61.1) (44.2) (109.0)Add-back cash flow from exceptional items and 1.2 1.0 1.8discontinued operationsAdd-back additional pension contributions 25.0 22.5 26.1Other items - 2.7 -Add-back tax paid 37.9 29.8 66.2Operating cash flow 132.5 97.7 276.4
vendorRelated Shares:
GFS.L