G4S, the security company, has reported on trading for the year to date and on financial performance for the three months to 31 March (release). The firm saw revenues rise by 7.5 per cent at constant exchange rates in the first three months of the year, while grouping operating margin was 0.6 per cent lower than on the same period last year.
The macro-economic environment has affected developed markets margins and, despite active business improvement plans which are being implemented, group margins are expected to continue to be impacted adversely in the short term.
The firm saw the UK government business continue to grow, aided by contracts beginning in 2012. But margins were affected by conditions in continental Europe and price pressures in the UK and Ireland. The closure of prisons by the Netherlands Ministry of Justice is expected to have a significant negative impact on the group's Dutch business.