13th Jun 2006 07:00
13 June 2006 GROUP 4 SECURICOR PLC TRADING UPDATE Group 4 Securicor plc, the international security solutions group, will beupdating analysts and investors prior to the start of the company's closeperiod which commences on 13 July 2006. In commenting on trading for the fourmonths to 30 April 2006, management will be indicating that the business iscurrently performing well and in line with overall expectations and that: * G4S Security Services (UK) won a number of contracts as a result of the implementation of security officer licensing in the UK. Some medium-sized competitors are still to gain Approved Contractor Status. During the second half of the year, we expect the licensing authority (SIA) to begin to take action against companies employing unlicensed security officers. * Wackenhut continued its strong performance across all areas of its business. Last month, it was successful in retaining a number of important contracts in the Government sector following a competitive tender process. * Overall, the New Markets businesses continued to perform well, with particularly strong growth in the Middle East and Latin America. * The German cash services market continued to be very difficult. During the period, market prices weakened by over 15% year on year. Although we have recently won some significant business at improved prices, we have also lost a major but unprofitable contract. We expect the market to improve in the second half of the year, but in the meantime we will be carrying out further restructuring in Germany. Organic GrowthOverall organic growth was around 8%, compared to around 6% for the same periodlast year, with all business lines performing well. * Growth at Wackenhut in the US continued to be robust at 8% * Overall growth in European manned security improved to 5%, from 3% for the same period last year * New Markets continued to perform strongly, with around 20% overall organic growth for the period MarginsThe overall group margin (%) is slightly down compared to the same period lastyear, but would be slightly ahead if the German Cash Services business wasexcluded. There were particular improvements in Wackenhut and New Markets.Acquisitions & DivestmentsOur acquisition strategy remains focused on bolt-ons, in key areas across allservice lines, which add scale or expertise to the group or could enable theconsolidation of fragmented markets. We continue to have a strong pipeline ofpotential bolt-on acquisition opportunities, which are evaluated and updated onan ongoing basis.AGM & DividendThe AGM will take place on 29 June 2006 and the final dividend of 2.24 pence(DKK 0.2435) per share is proposed for payment on 11 July 2006.For further enquiries, please contact:Nick Buckles +44 (0)1293 554400Trevor DightonDebbie McGrathRob GurnerMedia Enquiries:Citigate Dewe Rogerson +44(0)7973 672649Notes to Editors:Group 4 Securicor operates in over 100 countries throughout the world andemploys over 400,000 people. It is a market leader in the provision of mannedsecurity, security systems and cash services in many of the countries in whichit operates. For more information on Group 4 Securicor please visit www.g4s.com.An investor and analyst conference call is taking place today at 0800 (BST),the dial-in number for which is +44 (0) 20 7162 0025. The call will be recordedand can be accessed for the next seven days by dialling +44 (0) 20 7031 4064,with a pin code of 705788.Results for the six months to 30 June 2006 will be published on Monday 11September 2006.ENDGROUP 4 SECURICOR PLCRelated Shares:
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