12th Nov 2014 08:02
LONDON (Alliance News) - Security company G4S PLC Wednesday said organic revenue was up 4.2% in the first nine months of the year, and underlying profits up by even more, driven by its corporate revamp, strong sales growth in emerging markets and a return to strong growth in North America.
The company also said it had agreed to sell its US government business for USD135 million in the third quarter, comprising USD80 million of cash and USD55 million of retained receivables. It expects to complete the sale by the end of the year.
In a statement, the company said it has won new contracts with annual revenue of over GBP870 million in the nine months to September 30, with the total contract value GBP1.7 billion. Its contract retention was slightly above 90%, in line with historical retention rates.
It said its sales pipeline stood at GBP5.1 billion at the end of September.
"The benefits from our programme of corporate transformation resulted in underlying PBITA and earnings growth ahead of revenues, with the half year improvement in profits continuing into the third quarter and expected to continue for the full year. Operating cash flow for the nine months also improved compared with last year," it said.
G4S has been going through a restructuring since it ran into issues with one of its UK government contracts, which led to it being banned for bidding for more contracts from this customer for several months in 2013.
The company said organic revenue rose 11% on the year in emerging markets, while 1% growth in its developed markets came about as 6% growth in North America was partially offset by a 1% decline in the UK and Europe.
All the figures are based on constant exchange rates.
"We are executing a clear and focused strategy which is delivering tangible benefits. Our trading performance is in line with our plans, reflecting double-digit revenue growth in emerging markets, the return of strong growth in North America and, as expected, a 1% decline in revenues in the UK and Europe. Our trading performance in 2014 and the on-going implementation of our performance
improvement plans are expected to provide good momentum for the group in 2015," Chief Executive Ashley Almanza said.
By Steve McGrath; [email protected]; @stevemcgrath1
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