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G4S upbeat after technology services drive profit rise
G4S said the outlook for its business was good as the security company reported a 6.5% rise in underlying annual profit.
Adjusted profit before interest, tax and amortisation rose to £491m from £461m in the year to the end of December as revenue increased 3.1% to £7.8bn. At G4S's core businesses, stripping out currency moves, adjusted profit rose 4.2% to £496m.
The main source of growth was G4S's secure solutions business, where adjusted profit rose 2.9% to £385m as the division sold more technology-related services. Profit at the smaller cash solutions business rose 5.3% to £160m as it sold more automated cash management products in the US, Europe, Africa and Asia.
Setting out his strategy for the next three years, G4S chief executive Ashley Almanza said the once sprawling company was organised in two divisions and would concentrate on technology-related services with the aim of increasing revenue by 4-6% a year. He is targeting efficiency gains of between £70m and £80m by 2020.
Almanza said: "G4S has delivered another year of profitable growth ... The outlook for the group is positive: our strong market positions, commercial discipline, growing technology-related revenues, positive cash generation and on-going productivity programmes provide substantial confidence that the group is well positioned to deliver a strong performance over the next three years."
Since taking over in 2013, Almanza has sold businesses, tightened controls and reduced debt after G4S was found to be overcharging on contracts and was criticised for failing to provide enough security guards for the 2012 London Olympics.