REG - G4S Plc - ISS A/S nine month trading update

Mon Oct 17, 2011 3:42am EDT

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RNS Number : 2772Q
G4S Plc
17 October 2011
 



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES OF AMERICA, HONG KONG, INDIA, JAPAN, PEOPLE'S REPUBLIC OF CHINA, SAUDI ARABIA, SOUTH AFRICA, SWITZERLAND OR ANY JURISDICTION WHERE TO DO SO WOULD VIOLATE THE LAWS OF THAT JURISDICTION.

 

THIS ANNOUNCEMENT IS AN ADVERTISEMENT AND NOT A PROSPECTUS AND INVESTORS SHOULD NOT SUBSCRIBE FOR OR PURCHASE ANY SECURITIES REFERRED TO IN THIS ANNOUNCEMENT EXCEPT ON THE BASIS OF INFORMATION TO BE CONTAINED IN THE PROSPECTUS EXPECTED TO BE PUBLISHED TODAY BY THE COMPANY. ONCE PUBLISHED COPIES OF THE PROSPECTUS WILL BE AVAILABLE FROM THE COMPANY'S REGISTERED OFFICE.

 

 

17 October 2011

For immediate release

 

G4S PLC

 

PROPOSED ACQUISITION OF ISS A/S

 

ISS A/S nine month trading update

 

Today ISS released its trading update for the nine months ended 30 September 2011:

"Group revenue amounted to DKK 57.8 billion in the first nine months of 2011, an increase of 6% compared with the same period in 2010, driven by organic growth of 6.4% and a positive effect from exchange rate movements of 1%, which was offset by negative net growth from acquisitions and divestments of 2%. The organic growth of 6.4% in the first nine months of 2011 was a continuation of the positive organic growth trend seen in 2010, fuelled by the start-up of several large IFS contracts in 2011. Organic growth was 7.0% in the third quarter of 2011 and marks the eighth consecutive quarter with an increase in ISS's organic growth rate. North America, Latin America and Asia delivered double digit organic growth rates.

Operating profit before other items increased by 4% to DKK 3,180 million in the first nine months of 2011 compared with the same period in 2010. The operating margin (operating profit before other items as a percentage of revenue) of 5.5% for the first nine months of 2011 was 0.1 percentage points below the comparable period in 2010. Operating profit increased by 7% to DKK 2,958 million in the first nine months of 2011 compared to DKK 2,761 million in the first nine months of 2010. The increase was due to the increase in operating profit before other items as well as a net decrease in expenses recognised as other income and expenses, which was achieved despite recognition of costs of DKK 100 million primarily related to IPO preparations.

The preliminary balance sheet position and the preliminary LTM cash conversion at 30 September 2011 is slightly lower than in previous periods as a result of a change in payment terms of VAT and payroll and social taxes in certain countries combined with the strong organic growth and a slight increase in debtor days.

The emerging markets, comprising Asia, Eastern Europe, Latin America, Israel, South Africa and Turkey, where more than half of ISS's employees are located, delivered organic growth of 13% and represented 19% of total revenue and 37% of total organic growth for the Group. In addition to boosting organic growth, these emerging markets delivered an operating margin of 6.8% for the nine months ended 30 September 2011, well above most mature markets."

Enquiries

 

G4S

+44 (0)1293 554400

Helen Parris


Debbie McGrath




Deutsche Bank

+44 (0)20 7545 8000

Anthony Parsons


Toby Clark

Lorcan Oshea


James Cass




Greenhill

+44 (0)20 7198 7400

David Wyles


Alex Usher-Smith




RBS Hoare Govett

+44 (0)20 7678 8000

Chris Zeal       


John Fishley


Steve Taylor


 

 

 

 

Deutsche Bank AG is authorised under German Banking Law (competent authority: BaFin - Federal Financial Supervisory Authority) and authorised and subject to limited regulation by the Financial Services Authority. Details about the extent of Deutsche Bank AG's authorisation and regulation by the Financial Services Authority are available on request. Deutsche Bank AG, London Branch is acting exclusively for G4S in connection with the potential transaction referred to in this announcement and no one else in connection with the potential transaction and will not be responsible to anyone other than G4S for providing the protections afforded to clients of Deutsche Bank AG, London Branch, nor for providing advice in relation to the potential transaction or any matter or arrangement referred to in this announcement.

 

Greenhill & Co. International LLP, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for G4S in connection with the potential transaction referred to in this announcement and for no one else in connection with the potential transaction and will not be responsible to anyone other than G4S for providing the protections afforded to clients of Greenhill & Co. International LLP nor for giving advice in relation to the potential transaction or any matter or arrangement referred to in this announcement.

 

The Royal Bank of Scotland plc (trading as RBS Hoare Govett), which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for G4S in connection with the potential transaction referred to in this announcement and for no one else in connection with the potential transaction and will not be responsible to anyone other than G4S for providing the protections afforded to clients of The Royal Bank of Scotland plc (trading as RBS Hoare Govett) nor for giving advice in relation to the potential transaction or any matter or arrangement referred to in this announcement.

 

This announcement is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities pursuant to this announcement or otherwise. There is no certainty that the potential transaction referred to in this announcement will lead to a binding agreement or transaction between the parties.

 

This announcement has been prepared in accordance with English law, the Listing Rules and the Disclosure Rules and Transparency Rules and information disclosed may not be the same as that which would have been prepared in accordance with the laws of jurisdictions outside England.

 

The distribution of this announcement in jurisdictions other than the United Kingdom may be affected by the laws of relevant jurisdictions. Therefore any persons who are subject to the laws of any jurisdiction other than the United Kingdom will need to inform themselves about, and observe, any applicable requirements.

 

This announcement is not an offer to sell or a solicitation of any offer to buy the securities of G4S plc (the "Securities") in the United States, Hong Kong, India, People's Republic of China, Saudi Arabia, South Africa, Switzerland or in any other jurisdiction where such offer or sale would be unlawful.

 

The Securities have not been and will not be registered under the US Securities Act of 1933 (the "Securities Act"), or with any securities regulatory authority of any State or other jurisdiction of the United States.  Consequently, the Securities may not be offered, sold, resold, transferred, delivered or distributed, directly or indirectly, into or within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any State or other jurisdiction of the United States.  No public offering of the Securities is being made in the United States. 

 

This announcement is an advertisement and not a prospectus.  It is expected that a prospectus and circular will be published by G4S later today and investors should not subscribe for or purchase any shares referred to in this announcement except on the basis of information in such prospectus. Copies of the prospectus will, following publication, be available from G4S's registered office.

 


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