G4S says worsening sales more than offset by cost control

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G4S PLC (LON:GFS), the controversial security group that has received a hostile takeover bid and a potential rival approach in recent weeks, reported revenues were down 2% in the first nine months of the year.

This was worse than the 1% decline seen in the first half of the year but it said this was “more than offset” by cost control and reduced interest costs after its refinancing and improving net debt position.

G4S, which sold its cash transport business earlier this year to focus on its Secure Solutions arm, said it has retained and won new contracts with an annual revenue contract value of GBP2bn so far in 2020, including a recent prison contract.

READ: G4S confirms bid approach from Allied Universal Security Services

In the fourth quarter so far, it said its smaller Retail Cash Solutions arm has begun to roll out a “significant” software-and-service contract with a big US retailer, “one of the largest big-box retailers in the world”.

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.”

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