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I am proud that we have delivered on the promises we made to investors when we created Group 4 Securicor in 2004. We have had a number of challenges along the way, but our strong 2006 results demonstrate that we have the right strategy and the commitment of our management and staff across the organisation. This gives me confidence for the future and I am excited about moving into our next phase of accelerated growth and development.
Results
The strong performance of the company in 2006 continues to demonstrate the benefits of the merger in 2004 between Securicor and the security businesses of Group 4 Falck. We intend to build on this strong foundation to exploit further the group’s potential for development in the future.
In 2006, profit before interest, taxation, amortisation and exceptional items increased by 10%* to £277.0m whilst turnover grew 8.4%* to £4,353.6m. Of that total profit figure, £215.6m was attributable to security services (which now incorporates our manned security, justice services and security systems businesses) and £87.9m to cash services, less head office costs of £26.5m. Our margin has increased to 6.4%, organic growth was strong and improved at 7.1% and adjusted earnings per share increased by 9% to 12.2p.
* at constant exchange rates.
Dividend
The directors recommend a final dividend of 2.52p or DKK 0.277 per share, payable on 8 June 2007, which, with the interim dividend of 1.69p or DKK 0.186 per share paid on 15 December 2006, makes a total dividend of 4.21p or DKK 0.463 per share for the year ended 31 December 2006. This represents an increase of 19% over the total dividend for 2005 and reflects the board’s aim as stated last year of reducing the company’s target dividend cover to two and a half times over the medium term.
Our Board
I assumed the role of chairman on the retirement from the board of Jørgen Philip-Sørensen at the end of June 2006, as announced last year. Mr Philip-Sørensen’s contribution over 50 years, to this company and before that to Group 4 and Group 4 Falck, has been immense and it is a privilege to have the opportunity now to pay tribute to my predecessor for what he has done for our industry and particularly for his part in the merger process which resulted in the formation of Group 4 Securicor.
Waldemar Schmidt also retired from the board at the end of June and I would like to express my gratitude for his contribution to our board.
During the year we have added to the breadth of experience on the board, with Mark Seligman joining at the beginning of the year and Mark Elliott being appointed in September. Mark Seligman’s capital markets knowledge is invaluable, whilst Mark Elliott brings with him experience of running a large, international services business and of the North American market.
I must also mention the retirement at the end of the year of our company secretary, Nigel Griffiths. His involvement with the group spanned four decades, including 13 years as an executive director of Securicor plc. His support and counsel has been greatly valued by the board and we wish him well in his retirement.
Our Staff
We now have some 470,000 employees in the group working to provide excellent service to our customers. It is the collective effort of those employees, who often work in very challenging circumstances, which enables us to maintain our position as a global industry leader. We place great value on the commitment these employees demonstrate every day. Mobilising the talents of all these people across such a large, complex organisation is a challenge we relish, and we are proud that the positive experience of our customers starts with the individual efforts of every single member of staff.
Our Future
At a time when security is seen as ever more important, we continue to devote our efforts to providing security solutions to our customers. The G4S brand has now been rolled out across the world and we hope to obtain support from investors to complete the final part of the brand implementation this year by changing the company’s name to G4S plc.
We still have many challenges to face, but we believe we are well positioned to deliver on our strategy and we look forward to the rest of 2007 with confidence. |
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January 2006
G4S brand identity launches in Hong Kong.
March 2006
G4S Security Services (UK) completes licensing project and achieves Approved Contractor Status ahead of schedule.
June 2006
NASA awards Wackenhut Services, Inc. fire protection and emergency response contract at Ames Research Centre.
July 2006
G4S wins Human Resources Excellence award for “Best Executive Development Programme”.
August 2006
G4S India recruits its 100,000th employee.
September 2006
Lord Condon appointed deputy chairman.
November 2006
G4S acquires Servicios Generales in Chile and Defence Systems Africa in Democratic Republic of Congo.
WE BELIEVE WE ARE WELL POSITIONED TO DELIVER ON OUR STRATEGY.
WE LOOK FORWARD TO THE REST OF 2007 WITH CONFIDENCE. |
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