Continued resilient trading and contract win performance reported by G4S
14 October 2020
G4S PLC has provided an update on trading conditions for the nine months ended 30 September 2020, with the Group’s revenues remaining resilient through the period under review.
Secure Solutions revenues, which account for 93% of Group revenues, remain broadly in line with 2019. Group revenues were just 2% lower overall, but this was “more than offset” by tight direct and indirect cost control and reduced interest costs, the latter reflecting both refinancing benefits and the Group’s improving net debt position.
As a result, the Group’s underlying earnings remain ahead of the prior year for the first nine months of 2020. Although the global economic outlook remains uncertain, the Group’s performance in the first nine months “demonstrates the strength” of the business.
In the first nine months of 2020, G4S has retained and won new contracts with an annual revenue contract value of £2 billion, including the recently announced ten-year £30 million per annum contract to deliver custody and rehabilitation services at HMP Five Wells.
Since the end of the third quarter, G4S Retail Cash Solutions has commenced the roll-out of the company’s Software-as-a-Service solution to a new customer in the United States, which happens to be one of the largest big-box retailers in the world. This significant new programme is expected to continue through 2021.
Commenting on the first nine months of trading, G4S Group CEO Ashley Almanza said: “G4S is a focused global business delivering integrated security solutions which combine our risk consulting, security, technology and data analytics capabilities. The benefits of our strategy, strong execution and rapid response to COVID-19 continue to be reflected in the Group’s results during 2020 with resilient revenue, earnings and cash flow. I would like to thank our customers and employees for their commitment to G4S during these challenging times.”