G4S books increase in annual profits
The security and outsourcing giant posted a 30% rise in pre-tax profit to £386 million in 2017.
Security and outsourcing giant G4S has posted rising annual profits, despite sluggish trading in its emerging markets division.
G4S posted a 30% rise in pre-tax profit to £386 million in 2017, while revenue climbed more than 3% to £7.8 billion at actual exchange rates.
Boss Ashley Almanza said: “G4S has delivered another year of profitable growth and good cash generation, enabling us to invest in our growth, technology and productivity programmes and, at the same time, strengthen our balance sheet.”
However, the firm saw a sluggish performance in the Middle East and India as it faced “challenging trading conditions”, leading to sales falling 5.1%.
Emerging markets delivered growth of just 1.5% overall, but developed markets performed well, seeing sales rise 4.3%.
Revenue in the UK and Ireland rose 2.1%, driven by double-digit growth in the G4S security technology business.
Mr Almanza has been overseeing an overhaul following a series of historic blunders, including a prisoner-tagging scandal and G4S’s failure to supply adequate security for the London Olympics in 2012.
G4S said its restructuring and efficiency programmes are on course to deliver £70 million to £80 million of savings by 2020, through “efficient organisation design and leaner processes”.
Mr Almanza added: “The outlook for the group is positive: our strong market positions, commercial discipline, growing technology-related revenues, positive cash generation and ongoing productivity programmes provide substantial confidence that the group is well positioned to deliver a strong performance over the next three years.”