EDINBURGH (Reuters) – G4S <GFS.L>, the world’s largest security group, said contract wins and technology-led productivity gains would underpin its full-year outlook after a “step change” in growth in the second quarter.
G4S, which provides outsourced services to manage cash including guarding and security, said however that first-half underlying profit before tax fell 3.2 percent to 212 million pounds, dented by restructuring costs and weaker trading in its Europe & Middle East Secure Solutions.
Underlying revenues rose 0.2 percent to 3.6 billion pounds.
G4S is implementing a productivity programme aimed to bring 90 to 100 million pounds of recurring cost savings by 2020, most of which should boost profit.
Contract wins helped the group in the last three months, Chief Executive Ashley Almanza said, which together with technology-enabled benefits in its cash business was driving growth.
“Our contract wins and strong retention rate in the first half of 2018 provide revenue momentum into the second half of the year,” he said.
(Reporting by Elisabeth O’Leary; editing by Kate Holton)