Security giant G4S to spin off cash-handling business
The outsourcing firm said it will focus on its main security operations following a review of the business.
Security contractor G4S has said it plans to split off its cash-handling business and focus on its main security operations.
The outsourcing firm said its board has approved the move, to be carried out by the first half of 2020, following a review of the business.
The announcement came as the group reported a 3.8% jump in revenues to £3.8 billion for the half-year to June 30.
Meanwhile, earnings slipped by 41% to £59 million after it was hampered by currency movements and £36 million in restructuring and separation costs.
Revenues for its main security business rose by 4.9% to £3.2 billion, while its cash arm saw sales rise 3.9% to £535 million for the period.
The company launched a review into the separation of its two divisions in December and said it had already received “unsolicited expressions of interest” from third parties for its cash business.
Earlier this year, the contractor was the subject of takeover interest from Canadian firm GardaWorld, before it dropped its bid in May.
G4S chief executive Ashley Almanza said: “In the first half of this year, our improving sales performance in both Secure Solutions and Cash Solutions saw the group deliver underlying revenue growth of 4.7%.
“The group’s half-year performance, sales pipeline, revenue momentum and productivity programmes support a positive outlook.
“Our separation review is now complete and the board has approved the separation of Cash Solutions from the group.
“We believe that this will create two strong, focused businesses, each with the clear potential to capitalise on market-leading positions and to unlock substantial value for customers, shareholders and employees.”