| |
| The cash services businesses performed very strongly in 2007, with excellent organic growth of 10.6% and margins of almost 11%. |
| |
 |
| |
Europe
Organic growth in Europe was excellent at 11.6% with strong margins of 11.0%.
In the UK & Ireland region there was solid revenue growth and positive margin enhancement as a result of strong performances in the ATM and cash management businesses. In the last quarter of 2007, the UK business won a substantial contract with HBOS for out of hours bank branch servicing and it continues to win business from competitors as they cope with operational issues. In Ireland there was good growth and margins should improve in 2008 due to the implementation of a post office outsourcing contract.
There was slow growth but strong margins in the Netherlands as a result of strong operational controls. The implementation of the Swedbank ATM management contract contributed to substantial revenue growth and strong margins in Sweden.
In Belgium there was good growth in ATMs and cash management, largely from expanding existing customer contracts. In the Czech Republic and Hungary there was solid revenue growth and improving margins.
The implementation of the post office outsourcing contract in Romania has driven extremely strong growth and margin improvements. Further phases of this project will be implemented in 2008. The successful introduction of the euro in Cyprus and Malta contributed to strong growth and margin development.
North America
There was negative organic growth in Canada and margin performance was affected by the loss of two significant contracts. A new CEO joined the business in 2007 and is already beginning to have a positive impact.
New Markets
Organic growth in New Markets was very strong at 17.0% with margins improving to 14.7%. There were excellent results across the regions in Asia, Middle East, Africa and Latin America.
Cash outsourcing opportunities are beginning to develop in Malaysia and Indonesia as financial institutions and central banks are focusing on their core services and driving efficiencies in the cash cycle.
In Hong Kong pricing pressure remains in the market, but there are opportunities for growth from the deployment of self service terminals in the banking sector.
In the UAE, the business has extended its cash management offer into credit card management and distribution services and India has been awarded the contract for distribution of the new national ID cards. In Thailand, a new state-of-the-art cash centre has allowed the business to expand rapidly.
G4S entered the cash services market in South Africa in the first quarter of 2007 through the acquisition of Fidelity Cash Management. The business is performing well with good growth, particularly in the ATM sector, and strong margins.
There was very strong organic growth in Kenya as a result of further outsourcing in the financial services sector. The introduction of new technology has provided the business with a unique competitive advantage in the market.
The continued improvement of the internal security situation within Colombia has resulted in increased economic activity and movement of funds within the country. Accordingly, the cash services business has benefited greatly from the increased activity during the whole of 2007. |
|
|
 |
THE CASH SERVICES BUSINESS PERFORMED VERY STRONGLY in 2007, with organic growth of 10.6% and margins of almost 11%. |
| |
|
|
ORGANIC GROWTH IN EUROPE WAS EXCELLENT at 11.6% with strong margins of 11.0%. |
| |
|
|
THERE WAS NEGATIVE ORGANIC GROWTH IN CANADA and margin performance was affected by the loss of two significant contracts. |
| |
|
|
ORGANIC GROWTH IN NEW MARKETS WAS VERY STRONG at 17.0% with margins improving to 14.7%. |
| |
|
|
|
