G4S expands east to secure 2012 growth

SECURITY giant G4S outlined the extent of its emerging markets opportunity yesterday as it eyes a return to pre-recession growth levels by the end of next year.

G4S, which protects assets such as oil and gas plants and runs government facilities such as prisons, expects the global security market to grow at eight to nine per cent from 2012 to 2019, as fast-expanding emerging markets buy more services.

It is banking on high GDP growth in these “new markets” to return its earnings per share growth to pre- financial crisis levels by the end of 2012, chief executive Nick Buckles said at a strategy day for investors.

Buckles says this growth, combined with a lack of international rivals, gives G4S a “multiplier effect” that will aid its expansion in markets closed to global players until now.

“That’s why we believe some time in the next five or so years, 50 per cent of our business will come from emerging markets,” he told City A.M.

New markets are expected to account for almost half the world security market by 2019, up from 33 per cent in 2004, as Asia develops.

“A lot of the countries where we will see big organic growth are those that are mineral rich or with oil and gas, so we will secure oil and gas facilities, ports, aviation, all that critical infrastructure. There’s a lot of requirement for security to help support the infrastructure that is creating the growth,” he said.