Today, G4S PLC, the world’s leading Global Integrated Security Company is holding a capital markets update at which the Chief Executive, Ashley Almanza, and Chief Finance Officer, Himanshu Raja, will brief investors on the group’s markets and strategy.

Ashley Almanza, who started his review when he was appointed CEO in July this year said:

“Our review of the business has confirmed that G4S has outstanding worldwide market positions. We are the global leader in integrated security, providing security products and security services and solutions in markets that are valued at over £100 billion. There is strong and growing demand for our core products and services, particularly in developing markets which we expect will represent around 40% of our sales in 2016.

G4S has strong fundamentals and these will be improved by changes to the way we manage the business. We will sharpen our strategic focus and strengthen our investment in customer service, organic growth, and technology and innovation. We will share best practice across the group and there will be a clear focus on capital discipline, cost leadership and cash flow management to ensure we deliver sustainable profitable growth.”

Market outlook
The global security market has strong structural growth characteristics. According to Freedonia 2013, the global security market is expected to grow 7.3% between 2011 and 2016 with high single digit/double digit growth in emerging markets where G4S has a unique established position.

G4S market positions
G4S is well positioned to take advantage of this structural growth and is organised by geographic market and service line. Our core service lines are Cash Solutions, Secure Solutions and Care & Justice Services.

The group has a diverse and resilient portfolio of businesses by geography, service and customer and will keep the portfolio under regular review to ensure it has the best approach to market. Across the portfolio the group has identified strong growth opportunities to support 5-8% per annum organic growth and with a contract pipeline of £5bn as at September 2013

Successful strategy execution
A detailed review of the group‘s organisational resource and capability has identified many strengths and also areas where additional investment is required and is underway.

Our ability to take full advantage of market opportunities and the successful execution of our strategy will be underpinned by:

• Strategic Focus including portfolio management
  • We have identified 35 businesses to grow, restructure or recycle capital
• Investment in customer service and organic growth
  • Additional £15-20m investment in sales, business development and capability in 2014
  • Further investment will be progressively self-funding
  • Plans to extend technology capability across the group to grow our £800m revenue security systems business to support and drive growth and profitability for our manned security offer
• People and Values
  • Reinforcing corporate values of Customer Focus, Expertise, Best People, Teamwork & Collaboration, Integrity and Performance
  • Establishing systematic processes to ensure that we have the right people focussed on the right opportunities
• A rigorous performance management framework being established
• Disciplined Financial Management
  • Service excellence centres to drive contract performance , gross margin improvement and improved customer service
  • Re-balancing organic and inorganic capital investment
  • Minimum 10% post tax IRR on investment
  • Previously announced £30-35m restructuring programme underway