G4S Annual Report and Accounts 2010 | Divisional review | Cash solutions

Strategy, KPIs and sectors

Cash Solutions - Chart showing turnover by sector

The cash solutions business manages cash for financial institutions and retailers. Our deep understanding of the cash cycle ensures that money is moved safely and efficiently around an economy at considerable cost saving to our customers, and allows them to focus on their core businesses.

Strategy

Play a key role in the management of the cash cycle on behalf of central banks, commercial banks and retailers, allowing them to focus on their core business
Use our developed market cash cycle expertise and track record to encourage central bank and financial institution outsourcing in New Markets
Continued roll-out of innovative technology such as CASH360

Key operational highlights

Continued strong performance in New Markets
Some service reductions due to low interest rates, lower inflation and recession
Strict cost control limited impact on margins
CASH360 sales gaining momentum

KPIs

During 2010, the cash solutions business performed robustly in an extremely difficult economic environment with organic growth of -1.1%. Margins were 11.0%

Services

G4S provides a wide range of secure logistics including:

Financial institution cash outsourcing
ATM network management
ATM cash management services
ATM engineering services
Retail cash management solutions – CASH360
Data and document management services
Cash logistics
Secure international transportation of cash and valuables

Contracts/relationships

The duration of contracts vary, with most being on an annual basis and those contracts requiring a higher capital intensity such as cash processing or CASH360 being usually five years’ duration. However, even when the contract terms are short, in practice many relationships become long term, rolling over from one year to the next. This is demonstrated in our annual customer retention rates which average above 90% across most regions.