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Bid target G4S jumps as first-half revenues rise 4.8%

The security services group reported growth across both of its core businesses and in all regions in which it operates
G4S security guard
Canada’s Garda World said earlier this month it is mulling a bid for G4S

Security outsourcer G4S PLC (LON:GFS) has enjoyed a “good start” to 2019, delivering growth across both arms of the business.

In the first three months of the year, total revenues were up 4.8% compared to the same period of 2018.

READ: G4S soars as Garda World confirms interest

Revenue in its secure solutions division, which provides security guards for The Open golf championship, climbed 4.9% year-on-year, driven by a strong performance in Africa and the Americas.

As for its cash solutions business, which transports and stores money on behalf of customers, revenues grew by 4.4%. Much of the growth came from North America, where sales jumped by a third.

The plan is to spin off that side of the group, and boss Ashley Almanza said “good progress” was being made with the separation review.

‘Positive outlook’

He added: “Our sales wins in the second half of 2018 provided a good start to 2019 and the group’s revenues were 4.8% higher than the first quarter of last year, with growth in all regions and divisions.

“This momentum, together with growing technology-enabled services in both our cash and security businesses, underpins a positive outlook for the group.”

Shares in the FTSE 250 company, which is being targeted by Canadian group Garda World, rose 2.4% to 235.2p in morning trading on Tuesday.

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