7th Nov 2019 11:25
(Alliance News) - G4S PLC said Thursday that revenue rose in the third quarter of 2019, driven by stronger results from operations in the Americas, Africa and Asia.
The security services firm reported total revenue growth of 4.9% year-on-year for the three months to the end of September, with 4.3% of growth being organic.
For the nine-months period, G4S reported a 4.7% annual increase in total revenue, of which 4.2% was organic.
On a divisional basis, the Secure Solutions registered a 4.3% increase in revenue, driven by organic growth in the security segment, which more than offset a decline in G4S's ancillary care and justice services.
Secure Solutions on a regional basis reported 9.9% growth in the Americas, 5.9% in Africa and a 5.3% increase from Asia, even as operations in Europe reported an 1.8% decline, reflecting "commercial discipline" in G4S's contract bidding.
Meanwhile, the group's Cash Solutions division reported organic revenue growth of 4.1% , driven mainly by 21% growth from Retail Cash Solutions North America.
G4S said it has continued to make good progress with preparing for the demerger of its Cash Solutions business, which is scheduled for the first half of 2020.
The group said it is continuing to evaluate "unsolicited third-party proposals", that could provide an alternative to the demerger, but said there was no certainty any proposal would lead to a transaction.
Looking ahead, G4S said it expects its organic growth momentum to continue into the fourth quarter of 2019. The group will continue to invest in additional sales and business development resources and mobilisation capacity to sustain strong revenue growth.
G4S will announce its annual results on March 12, 2020.
Shares in G4S - which is headquartered in London - were up 3.9% at 212.70 pence on Thursday.
By Dayo Laniyan; [email protected]
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