logo-loader

G4S warns tough trading will continue in Europe and US

Last updated: 18:14 05 Nov 2013 AEDT, First published: 19:14 05 Nov 2013 AEDT

no_picture_pai

Security services firm G4S (LON:GFS) warned that trading conditions will remain challenging in Europe and the USA during the fourth quarter.

It said that the trends set in the early part of the year continued through the third quarter, with reduced government spending affecting certain businesses.

However, the company revealed revenues were up 6.4% compared with the first nine months of 2012, at constant exchange rates and excluding last year’s Olympics contracts.

G4S says the improvement comes from its emerging markets businesses, which now contribute around 40% of the group’s profits.

The company also expects a boost next year from the restructuring of business units in the UK and Ireland.

It has been a tumultuous year or so for the security firm after its high profile bungling of Olympic contracts - when it failed to hire and train enough staff in time - was followed by accusations of overcharging on government contracts relating to the electronic tagging of criminals.

The Serious Fraud Office began criminal investigations yesterday and will decide whether to take the companies to court by the end of November. Also, a Cabinet Office audit of major contracts is underway and the firm will not be able to secure any new business with the UK government in the meantime.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

11 hours, 20 minutes ago