G4S plc UK DK : Statement re Pre-Conference Update

                            
9 May 2016

G4S to present at the JP Morgan European Business Services conference

G4S plc announces that, on 11 May 2016, Group CEO Ashley Almanza will present at the JP Morgan Cazenove European Business Services conference. In advance of the conference G4S provides the following update for the three months ended 31 March 2016. All figures and commentary are unaudited and stated at constant exchange rates.

Commenting on first quarter trading, Ashley Almanza said: "Against a backdrop of macro-economic uncertainty, the Group had a positive start to the year. We continued to implement our strategy to transform the Group's focus and performance and this is reflected in our revenue growth and improving profit and cash generation."

Over the past two years, we have made substantial investments in our Continuing Businesses and these investments continued to produce tangible benefits in the first quarter this year. Strengthening the Group's strategic, commercial and operational focus remains essential to the transformation of G4S and we have a well-established portfolio programme through which we have exited 24 businesses and realised aggregate proceeds of £283 million. We are making good progress with the portfolio programme and are in the process of selling or closing a further 42 businesses, which are referred to collectively as Portfolio Businesses. We are also managing a number of Onerous Contracts to an effective conclusion; virtually all relating to long standing, loss making UK public service contracts.

Continuing Businesses had revenues of £1,506 million (Q1 2015: £1,441 million), 4.5% higher than the first quarter 2015. Revenues from Onerous Contracts were £55 million (Q1 2015: £46 million) and Portfolio Businesses had revenues of £186 million (Q1 2015: £218 million).

Since the start of the year the Group has won new contracts with annual revenues of £450 million and total contract value of £950 million.

PBITA increased by 6.5% excluding restructuring charges of £1 million (Q1 2015: £1 million) and £1 million profit (Q1 2015: £4m) from Portfolio Businesses which are being sold or closed.

There were no new onerous contract charges or impairments in the quarter and onerous contract costs were within the Group's provisions for losses on these contracts.

Operating cash flow for the three months was an inflow of £86 million compared with £5 million in 2015, of which £24 million related to the reversal in working capital from the fourth quarter 2015.

Slides from the conference presentation will be uploaded onto the G4S website on 11 May.

For investor queries, please contact:
Helen Parris   Director of Investor Relations   +44 (0) 20 8722 2125

For media enquiries, please contact:
Nigel Fairbrass    Director of Media    +44 (0) 7799894265
Matthew Magee   Media Relations Manager   +44 (0) 7841982838

Notes to Editors:
G4S is the leading global integrated security company specialising in the provision of security products, services and solutions.

The Group is active in around 100 countries, and is the largest employer quoted on the London Stock Exchange with over 610,000 employees and has a secondary stock exchange listing in Copenhagen.

The Group intends to continue to report on continuing businesses, onerous contracts and portfolio businesses.  Analysis of FY 2015 results is available on the g4s.com website.

Half year results
Results for the six months to 30 June 2016 will be published on 10 August 2016.