G4S Profile

Company: 
G4S
Author: 
Jane Lethbridge
Date published: 
2010

G4S plc

The Manor
Manor Royal
Crawley
West Sussex
RH10 9UN

Tel: +44 (0) 20 8770 7000
or +44 (0) 20 8722 2000
Email: enquiries@g4s.com

http://www.g4s.com/

In 2004, G4S was formed through the merger of Group 4 Falck and UK based Securicor, both global security companies.  In May 2004, the UK facilities management division of Group 4 Falck, Global Solutions Ltd, was sold to Englefield Capital, in partnership with Cognetas LLP and Electra Partners Europe.  Global Solutions Ltd (GSL), was a leading provider of outsourced services to public authorities and operators within the growing PFI and PPP outsourcing market, in the UK and internationally (Englefield Capital, 2008).  By 2004, GSL had contracts with the public sector in custodial services, covering prison management, escorting of prisoners, immigration services, custody and training; and other public services in health care, education and local government.  The company has continued to expand into the public sector.

In July 2008, G4S bought GSL from Englefield Capital / Europa Electra Partners.  G4S now provides “medical service solutions for the public and private sector” in the UK and emergency ambulance services and ‘specialist guarding to secure hospitals’ in Australia (G4S, 2007).   This acquisition supports the G4S 2004-2007 corporate strategy, in which G4S aimed to expand further into the UK, USA, Benelux countries and Scandinavia (G4S, 2004).  In the 2008 G4S strategy (for Asia-Pacific), priority sectors were listed as health, local government, ports/airports as well as Benelux becoming a priority country for expansion (G4S, 2008).

 

Table 3:  G4S services in the UK

Service

Activities

NHS

 

 

Medical recruitment

Non-emergency transport

Medico-legal reporting

LIFT (Local   Financial

Childrens’

Services

3  purpose-built secure centres run for the Youth Justice Board

A specially designed residential children’s home, for young people with emotional and behavioural difficulties

Secure transportation and escorting services for young people

Training courses

Immigration

In country escorting

Immigration detention and removal centres

Police

 

Support services, including services related to detainees, - processes, charging, fingerprinting, transporting, drug testing, statement taking, case preparation, management of forensic samples, other administrative tasks.

Facilities Management

Public and private sector

PFI/ PPP

Special purpose vehicle management

LIFT Primary Care

 

Table 4: G4S Finance

 

2007

2006

Revenues

4,496.4 million

4,036.8 million

Profit before tax

309.1

271.6

Total liabilities

(2,552.8)

(2,203.7) million

Total staff costs

3,257.7

3,108.3

 

Table 5: Number of G4S employees

 

2007

2006

Security services

466,035

403, 079

Cash services

41, 255

36,866

Administration

190

183

Total

507,480

440,128

 

Table 6: Geographical distribution of G4S employees

Region

2007

2008

Europe

115,951

114,216

North America

53, 414

51,919

New markets

337,928

273,810

Not allocated ( head office)

190

183

There are historical links between G4S and Falck, which are important in understanding the current relationship between these two companies.  Both are still significant providers of security services, although Falck has a wider range of health care services.  Since the acquisition of GSL, in 2008, G4S has also expanded its health care activities.

 

Table 7:   Falck and G4S - changes in ownership between 1988-2009

Year

Falck

Group 4 Group /  Securitas/ Securicor

1980s

1988 Falck family sold Falck to Baltica, a Danish insurance company

 

 

1981 Jørgen Philip-Sørensen took responsibility for the European activities in the Group 4 Group

Securicor – UK based part of company

His brother, Sven Philip-Sørensen, carried on the Swedish activities (Securitas AB) 

 

 

1989 Securicor established a custodial services division

1991

Baltica sold 55% of its shares in Falck

Group 4 won the contract to run the first UK privatised prison HMP Wolds

1993

Falck acquired Danish company ISS Securitas to form Falck Securitas

 

2000

Group 4 Securitas (International) B.V. and Falck A/S merged to form Group 4 Falck

UK based Securicor continued global expansion as separate company

2001

Group 4 Falck acquired several security businesses in Europe

2002

Group 4 Falck A/S bought Wackenhut Corporation

Group 4 Falck sets up a rescue and safety operation in a new division

2003

 

2004

After Group 4 Falck merged with UK based Securicor, Falck was then separated from Group 4 and was listed independently on the Copenhagen Stock exchange.

 

 

Group 4 Falck merged with UK based Securicor

Group 4 Falck's UK Facilities Management Division sold to Englefield Capital/ Europe Electra Partners  and renamed Global Solutions Ltd (GSL)

Rebranded as G4S

2005

Falck bought by Nordic Capital and delisted from the Copenhagen Stock Exchange.

GSL expansion

2006

Expansion into Estonia, Finland, Belgium, Slovakia, Brazil, Trinidad/Tobago, and Spain

2007

2008

GSL sold to G4S

2009

 

G4S 

Source: G4S Annual Report, Falck Annual Report, http://www.corporatewatch.org.uk/?lid=337