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G4S Q1 trading in line, revenue growth to accelerate in second half
Security group G4S said on Wednesday that first-quarter trading was in line with the outlook it provided in March and that it expects growth to accelerate in the second half of the year after organic revenues fell 2% in the first quarter.
The drop in revenues was expected versus the same period a year ago, when it mobilised a very large retail solutions contract in North America.
Following a major contract win in February, the North America retail cash solutions business has continued to build a large sales pipeline and make "significant" progress with pilot programmes at major retailers, the company said, adding that contracts year-to-date were £500m.
Revenue in the company's secure solutions business reflected positive momentum in a number of key markets, partially offset by the year-over-year effect of the slowdown in the Middle East and India in the second half of 2017.
G4S disposed of its business in Hungary during the first quarter and its storage business in Kenya, realising proceeds of £32m.
Chief executive officer Ashley Almanza said: "The group continued to make progress with its plans to deliver revenue growth and improved productivity. The emphasis on profitable growth and maintaining commercial discipline has been, and remains, important at a time when a number of markets in Europe and North America are at or approaching full employment.
"We expect growth to accelerate in the second half of 2018 as the strong first-half comparatives from retail cash solutions roll off, our new contracts mobilise and our productivity programmes deliver benefits to the bottom line."