G4S says is confident about 2008 performance

COPENHAGEN (Reuters) - Anglo-Danish security services firm G4S (GFS.L: Quote, Profile, Research) on Tuesday said its underlying performance was slightly ahead of management's expectations and that it was confident about its 2008 performance.

The firm also said it was placing up to 127 million new shares, representing about 9.9 percent of issued ordinary share capital, to reduce debt in connection with recent acquisitions.

G4S said in a statement the placing -- worth about 300 million pounds at current share prices -- would increase its capacity to continue to make further acquisitions.

Deutsche Bank is placing agent and sole bookrunner in the placement, G4S said, adding the placing was expected to close on Tuesday, May 13.

The group also said overall margins in the first quarter of the year were ahead by 0.1 percentage points on the same period in 2007.

It said overall organic growth improved strongly to 11 percent.

G4S said the strength in the trading year to date was helped in part by a small benefit from euro's recent strength.

The group said it expects to continue "to commit additional capital to acquisitive growth".

G4S said its potential pipeline of acquisitions was very strong, with about 20 targets in active contemplation, ranging in value from around 5 million pounds to 50 million pounds.

(Reporting by Kim McLaughlin; Editing by Louise Ireland)