16th Nov 2020 10:58
(Alliance News) - G4S PLC targets annual revenue of USD600 million by 2025 at its Retail Cash Solutions arm, the security services firm said on Monday, as it set out its defence in the wake of rejecting a pair of takeover attempts.
The cash handling unit "represents exceptional unrecognised value within G4S", the company said.
"RCS is revolutionising global cash management with the potential to generate significant returns for G4S shareholders," G4S added.
In the medium-term, G4S expects revenue growth of 25% per year from the unit, "attaining more than USD600 million by 2025".
"With a huge addressable market of USD13 billion, RCS has significant further potential," G4S added.
G4S also eyes a profit before interest, tax and amortisation margin between 15% and 20% from the unit in the medium term.
In 2019, the cash management unit generated revenue of USD170 million and Pbita of USD30 million.
The statement from G4S comes after the firm rebuffed two takeover attempts, one from Canada's Garda World Security Corp and another from US company Allied Universal.
In September, the board of the FTSE 250-listed firm rejected Montreal-based GardaWorld's cash offer, saying it undervalued the company. However, in October, GardaWorld directly approached G4S shareholders with the same GBP3 billion offer.
And earlier in November, the directors of G4S rejected a GBP3.25 billion bid from Allied, again stating that it undervalued the business.
The "at least" 210p per share bid did, however, give Allied Universal the edge over Canadian rival suitor GardaWorld, whose bid was 190p.
G4S shares were 0.5% higher at 214.00 pence each in London on Monday morning.
By Eric Cunha; [email protected]
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