G4S sees opportunities in cuts

SECURITY services group G4S reported a three per cent rise in first-half profit, helped by strong performances at its emerging markets businesses, and predicted UK government spending cuts would fuel further growth.

“The Middle East, India and large parts of Asia all show good signs of delivering double digit growth in the second half,” chief executive Nick Buckles said yesterday.
“There are also growth opportunities in the UK outsourced government sector -- we can help the British government through a difficult time.”

Services companies with exposure to contracts with the British government are bracing themselves for Downing Street’s October Spending Review, which will outline the extent of the coalition’s drive to cut public spending.

However, G4S , which provides services ranging from cash transportation to security and protection, believes spending cuts may boost sales in areas where outsourcers would be hired to achieve savings.

G4S posted an operating profit of £238.1m on revenues four per cent higher at £3.63bn pounds for the six months to the end of June. It increased its interim dividend by five per cent to 3.17p.