"We have delivered another strong performance in 2010 – our sixth year of sustained revenue, profit and dividend growth."
Alf Duch-Pedersen, Chairman
2010 was a difficult year for many businesses and G4S has not been immune to the continuing effects of the global downturn. Many of our customers have had to re-examine the value for money offered by their service providers. Even governments and public authorities are constrained in their ability to spend.
In circumstances like these I believe we can be particularly proud that we have been able to deliver revenue and profit growth yet again and maintain our margins. Proud, but not complacent.
In 2010, profit before interest, taxation and amortisation improved by 4.2%* to £527m and turnover increased 4.1%* to £7,397m. The group’s profit margin was maintained at 7.1% and adjusted earnings per share were up 7% to 21.6p. The directors are therefore able to recommend a final dividend of 4.73p or DKK 0.4082 per share, payable on 3 June 2011. With the interim dividend of 3.17p or DKK 0.2877 per share paid on 15 October 2010, the total dividend for the year ended 31 December 2010 will be 7.90p or DKK 0.6959 per share.
Our businesses around the world have worked extremely hard in 2010 to achieve these results – and I would like to thank every manager and employee in the group for playing their part. In 2011 we will need to do even more and we are ready for the challenge that lies ahead. We continue to implement our strategy of developing solutions for our customers over longer-term relationships and we have changed our management structure to allow this strategy to develop and thrive. We also continue to make acquisitions in those security-related solutions areas which will add to our expertise and in businesses which will broaden our geographical reach into new and important markets.
As chairman, I do of course have particular responsibility for ensuring that the board continues to do its part in developing the group’s business and managing the company in the best interests of its stakeholders. As I mentioned last year, we planned then to refresh the composition of the board and I am very pleased to be able to report on how we have done this. Thorleif Krarup, who had been with the board since the group was founded by the merger between Group 4 Falck and Securicor in 2004, has retired and we have added two new non-executive directors: Clare Spottiswoode and Winnie Fok. Whilst good corporate governance rightly requires change to the make-up of the board to ensure independence, it is also important to maintain continuity and experience, particularly if the existing line-up is performing well. I am sorry therefore that we have lost Thorleif’s experience. In Clare and Winnie though, we have acquired new and different experience and expertise, and they are already adding to the breadth of our debates.
For the future, whilst the different parts of the world in which we operate continue to be affected by the economic downturn in different ways and to different extents, overall we know that performing well in 2011 will require just as much effort and innovation as was demonstrated by the group in 2010. I am confident that the strategy we have adopted and the way in which it is being implemented, will give us the best chance of continuing to deliver value to all our stakeholders.
*2006 to 2009 at 2010 exchange rates and excluding all businesses disposed of during the period.