G4S Annual Report and Accounts 2011

Overview Strategic review Performance
Performance
Divisional review continued
Cash solutions
The cash solutions businesses manage cash primarily for financial institutions and retailers. G4S’s
detailed understanding of the cash cycle ensures that cash is managed efficiently, allowing G4S’s
customers to focus on their core businesses. Cash solutions accounted for 17% of G4S’s revenue
and 24% of PBITA for the year ended 31 December 2011.
Services
The cash solutions businesses cover a wide range of services including:
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Cash transportation – the secure transportation of
cash using high security vehicles, fully screened and
trained personnel and purpose-built technology to
transport, protect, count and reconcile the cash to
customer records
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Cash management – the management of cash on
behalf of financial institutions which includes cash
transportation, the design, build and management
of purpose built high security cash centres, counting
and reconciling cash, fitness sorting of notes for use
in ATM machines, counterfeit detection and removal,
redistribution of cash to bank branches, ATMs and
retail customers – all managed within strict security
guidelines and timescales in order to maximise the
efficiency of the cash cycle. Cash management is
also used for counting and reconciling cash from
non-financial institution customers
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Cash consulting – providing consultancy services to
central banks and commercial banks on overall cash
management strategy, bank note production and
security and all aspects of cash cycle efficiency
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ATM management – managing ATMs on behalf of
banks, retailers and independent ATM providers –
including cash forecasting, cash transportation and
reconciliation services, first line maintenance and
ATM engineering services
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Retail cash management – systems and hardware
which provide an automated cash office for retail sites
to improve security of cash, electronic audit trails of
takings and a real time view of retail cash balances
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Secure international transportation of cash and
valuables – bespoke international transportation
and insurance of currency, gems, precious metals
and other valuables
Contracts and relationships
The duration of contracts in the cash solutions segment vary, with most being
on an annual basis and those contracts requiring a higher capital intensity, such
as cash processing, 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.
2011 cash solutions revenue
by customer type
%
1
.
2
3
1 Financial institutions 65%
2 Retail 19%
3 Other 16%
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G4S plc
Annual Report and Accounts 2011