G4S sells its US youth detention centres for $56m as part of its transformation plans

Courtney Goldsmith
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The sale is part of a larger turnaround programme (Source: Getty)

Global security firm G4S has sold its US youth detention centres for $56.5m (£45.1m) in cash, with proceeds earmarked for "corporate purposes".

The UK-based company said it sold its youth services unit, which operates in Florida, Texas and Tennessee, to BHSB, a Florida-based health care services company that provides counselling and care to young adults across the US.

Chief executive Ashley Almanza said the sale is part of a portfolio management programme started in 2013 to improve the company's strategic, commercial and operational focus.

Shares in the FTSE 250 company edged up 0.66 per cent at 306.3p in morning trading.

Read more: G4S shares rocket on positive results

In the year to the end of December 2016, G4S' youth services unit reported pre-tax profit of $5.1m compared with $5.6m the previous year. At the end of the year, the group had gross assets worth $21.5m.

The group's shares jumped last month when it announced strong results after making progress against a company overhaul initiated three years ago and a pipeline worth £6.8bn in sales .

Not to mention Donald Trump's economic plans, which are set to give the business a boost. After the firm revealed its results, Almanza said:

What's good for our customers is good for us. When our customers do well, we do well because they expand, invest and as result they typically buy more security services. That is probably the most important overall opportunity that we see.

Read more: Political divides call into question just how much Trump will actually do

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