G4S Group’s revenues have remained resilient during the first nine months of the year ending 30 September.
Secure Solutions revenues, which account for 93 per cent of revenues, remain broadly in line with 2019. Group revenues were just 2 per cent 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 G4S’s improving net debt position.
As a result, says the statement, underlying earnings remain ahead of the prior year for the first nine months of 2020.
Although the global economic outlook is still uncertain, the group says its performance in the first nine months demonstrates the business’s strength.
G4S has retained and won new contracts with an annual revenue contract value of £2 billion, including the recently announced 10-year, £30 million-a-year contract to deliver custody and rehabilitation services at HMP Five Wells.
Since the end of the third quarter, G4S Retail Cash Solutions has begun the roll-out of its software-and-service solution to a new customer in the US, one of the largest big-box retailers in the world. This new programme is expected to continue through 2021.
Ashley Almanza, G4S group CEO, said: “G4S today is a focused global business delivering integrated security solutions which combine our risk consulting, security, technology and data analytics capabilities. The benefits of our strategy, strong execution and rapid response to Covid-19 continue to be reflected in the group’s results during 2020 with resilient revenue, earnings and cash flow.
I would like to thank our customers and employees for their commitment to G4S during these challenging times.”
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