GFS G4s Plc

 
TIDMGFS 
 
 
 
 
   23 March 2020 
 
   G4S plc 
 
   Covid-19 Update and 2019 Final Dividend 
 
   G4S, the leading global security company provides the following update 
on Covid-19. 
 
   As reported on 11 March 2020, when G4S announced its 2019 preliminary 
full year results, the financial impact of Covid-19 has not been 
material in the context of the Group's year-to-date performance. 
 
   The Board notes that, in the period since 11 March 2020, the spread of 
the virus to countries outside Asia has accelerated and the World Health 
Organisation has declared Covid-19 a global pandemic.  Countermeasures 
that are being introduced by national governments have escalated rapidly 
with potentially significant implications for the level of economic 
activity across a wide range of business sectors and geographic markets. 
 
   G4S is working with employees, customers, suppliers, regulators and 
governments to strengthen business continuity plans and to protect the 
company and its key stakeholders.  Across our operations we continue to 
have mutually supportive relationships with our customers, governments 
and other key partners who recognise the critical importance of, and 
ongoing need for, the services G4S provides. 
 
   As reported in our 2019 annual results, as at 31 December 2019 the Group 
had substantial liquid resources of GBP1.3 billion comprising cash, cash 
equivalents and bank overdrafts of GBP0.5 billion and committed, 
unutilised credit facilities of GBP0.8 billion.  The Group had gross 
outstanding bank loans and loan notes of GBP2.3 billion as at 31 
December 2019 of which only GBP56 million is scheduled for repayment in 
2020. 
 
   On 26 February 2020 the Group agreed to sell the majority of its 
conventional cash businesses to The Brink's Company for an enterprise 
value of GBP727 million.  Under the agreement, completion is phased with 
expected net cash proceeds of approximately GBP670 million.  The sale of 
the first business under this agreement has completed with cash proceeds 
received of approximately GBP70 million and further completions are 
scheduled through 2020. 
 
   Notwithstanding the company's strong liquidity, robust business 
continuity plans and the immaterial financial impact to date, the Board 
considers that the uncertainty relating to Covid-19 and its impact on 
economic activity in our key markets has increased substantially since 
11 March.  In these circumstances, the Board has concluded that it is 
prudent and therefore in the best interest of the company that G4S does 
not pay a 2019 final dividend.  Accordingly, the Board is not proposing 
to recommend the payment of a final dividend in respect of the full year 
2019 at the forthcoming Annual General Meeting. 
 
   In addition, the company is taking steps to reinforce its focus on 
strong operating cash generation, capital efficiency and other measures 
to prioritise free cash flow. 
 
   Once the adverse impact of Covid-19 has abated, it is the Board's 
intention to restore the dividend taking into account its stated 
objective of attaining dividend cover of 2x and thereafter, pursuing a 
progressive dividend policy. 
 
   Notes: 
 
 
   1. G4S had previously stated, in its preliminary full year results 
      announcement on 11 March 2020, that the Board would propose a final 
      dividend of 6.11p per share for the year ended 31 December 2019 at the 
      forthcoming Annual General Meeting. 
 
   2. This announcement contains inside information and the person 
      responsible for making this announcement is Celine Barroche, Company 
      Secretary. 
 
 
   For further enquiries, please contact: 
 
 
 
 
Helen Parris   Director of Investor Relations   +44 (0) 207 9633189 
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   Media enquiries: 
 
 
 
 
Tim Malone     Group Media Manager   +44 (0)7540 970 528 
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Press office                         +44 (0) 207 9633333 
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   Notes to Editors: 
 
   G4S is the leading global security company, specialising in the 
provision of security services and solutions to customers. Our mission 
is to create material, sustainable value for our customers and 
shareholders by being the supply partner of choice in all our markets. 
 
   G4S is quoted on the London Stock Exchange and has a secondary stock 
exchange listing in Copenhagen. G4S is active in around 90 countries and 
has more than 550,000 employees. For more information on G4S, visit 
www.g4s.com. 
 
 
 
 

(END) Dow Jones Newswires

March 23, 2020 08:25 ET (12:25 GMT)

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