G4S revenues rise with help from Olympics
SECURITY firm G4S yesterday said that revenues were up 7.5 per cent year-on-year for the first quarter of 2012, assisted by a substantial contract from the forthcoming Olympic Games.
Despite this the board reported that profits were at similar levels to the previous year due to lower operating margins.
Shares in the firm – the world’s second largest private sector employer – responded positively, closing up 3.2 per cent at 275.2p.
“Based on recent contract awards, outsourcing trends and the group’s bid pipeline, the organic growth rate is expected to continue to improve during 2012,” G4S said.
The firm’s wide-ranging interests include cash transportation for high-street shops, security at Heathrow airport and a 15-year contract to run two prisons on behalf of the British government.
It also has a £200m contract to supply 10,000 personnel for this summer’s London Olympics and has seen increased cash handling in troubled Eurozone states.
“Our fastest growing business last year in European cash services was Greece and clearly our biggest contingency issue would arise if the country were to leave the euro and go back to the Drachma,” chief executive Nick Buckles told reporters.
“Basically we would be involved in the whole roll out of the currency. We are not talking to anybody about that at the moment but that would be a big challenge for us.”
G4S reported good progress towards its aim 50 per cent of revenue from developing markets by 2019.