21st Sep 2020 10:03
(Alliance News) - G4S PLC, fresh from rejecting a GBP3 billion takeover offer, on Monday said underlying earnings for the first eight months of 2020 are ahead of the prior year period due to a "resilient" revenue performance.
Shares in the FTSE 250-listed security services provider were down 2.3% at 189.15 pence each in London.
"Following a strong performance in the first half of 2020, the group's revenues have remained resilient through the first eight months of the year," the London-based company said.
Group revenue for the eight months to August-end was just 1.9% lower overall and this was more than offset by tight direct and indirect cost control and reduced interest costs, the latter reflecting both refinancing benefits and the company's improving net debt position, G4S explained. Secure Solutions revenue, which account for 93% of group revenue, were broadly in line with 2019, it said.
G4S Chief Executive Officer Ashley Almanza said: "G4S today is a focused global business delivering technology-enabled security solutions. The benefits of our strategy, strong execution and timely response to Covid-19 continue to be reflected in the group's results during 2020 with resilient revenue, earnings and cash flow."
On Monday last week, G4S had rejected a GBP3 billion takeover offer from peer Garda World Security Corp, saying that the Montreal-based firm's offer undervalued the company.
GardaWorld had said it was mulling a takeover offer for G4S but explained that attempts to engage with the security services company's board have so far been rebuffed. It had announced a possible 190p per share offer for G4S.
By Tapan Panchal; [email protected]
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