G4S profits swell due to tight cost control during coronavirus pandemic
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Security firm G4S said this morning that profit for the first nine months of the year was ahead of 2019 levels despite a dip in revenue as it clamped down on costs during the coronavirus pandemic.
The group’s revenue fell two per cent, which was “more than offset by tight direct and indirect cost control and reduced interest costs”.
Underlying earnings remain ahead of last year for the nine months ended 30 September, G4S said.
The London-listed firm, which is currently in a hostile takeover battle with Canadian company Gardaworld, has managed to retain and win new contracts with annual revenue values of £2bn.
The new contacts include the 10-year £30m per annum contract to deliver custody and rehabilitation services at HMP Five Wells in the UK.
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 United States, one of the largest big-box retailers in the world.
The new programme is expected to continue through 2021.
G4S group chief executive Ashley Almanza 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”.