G4S meets first half expectations

A G4S security employee.
A G4S security employee.
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Security services company G4S met expectations with a 5 per cent rise in first-half adjusted operating profit, and said productivity improvements would continue to feed through in the second half.

G4S, which stocks ATMs, runs prisons and protects airports, posted profit of £193m, broadly in line with analyst consensus of £194m, on revenue from continuing operations of £3.3bn, up 2.8 per cent but slightly undershooting forecasts.

Ashley Almanza, chief executive officer of G4S, said: “We continue to make good progress with our strategic plans, investing in growth and productivity programmes which underpinned strong growth in our pipeline and a 10.5 per cent increase in underlying earnings.

The firm said new contract sales achieved a total value of £1.4bn, the annual value £0.7bn, with contract retention rates maintained at around 90 per cent. The sales pipeline has been replenished to stand at £6bn annual contract value.

Mr Almanza said: “We won new contracts with a total value of £1.4bn and sales, new contract mobilisation and on-going productivity programmes provided increasingly good momentum through the first half. This is expected to deliver further improvements in the group’s performance in the second half.”

Vicar Lane, Leeds City Centre.

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