G4S shares plummet after warning Middle East and India performance will drag down full-year returns

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The Middle East and India were the only markets where G4S revenues were not growing (Source: G4S)

Shares in G4S dived this morning after the security giant warned sluggish performance in the Middle East and India would hamper revenue growth.

G4S downgraded full-year sales growth guidance from between four and six per cent to three and four per cent.

Investors took flight as markets opened, with shares in the world's largest security firm down over seven per cent.

Read more: G4S shares have fallen despite a rise in profits

But boss Ashley Almanza said trading for the first nine months of the year was "in line with expectations".

He said: "Organic revenue growth was 4.4 per cent, with all regions growing apart from the Middle East and India region."

The Middle East and India contraction will come as a blow to G4S, which is seeking to reduce its dependency on business from the UK and Ireland.

Nevertheless, G4S' key growth area, the US, was performing well. It said systems and technology-enabled security was performing well in key markets and accounted for over £1.7bn pounds in annualised revenue, up from £1.5bn in December.

G4S said in a statement: "We remain focused on cash flow and are on track for the Group’s net debt to Ebitda [earnings before interest, taxation, depreciation and amortisation] ratio to be 2.5x or lower by the end of 2017."

Read more: G4S wins another government tagging contract, despite £109m fraud scandal

 

 

Tags: G4S