G4S PLC (GFS) said its ongoing security business has seen revenues in 2020 slightly higher than this point last year.
The Secure Solutions business has generated revenue of £2.6bn in the five months to May 31, representing more than 90% of group pro-forma revenues after the sale of its cash handling business to Brink’s in February.
Secure Solutions has been benefitting from a growing proportion of consulting and technology-enabled revenues, the FTSE 250 group said in a statement alongside its annual shareholder meeting on Wednesday, with revenues up in the Americas and Asia, but down in Europe, the Middle East and Africa.
Along with its core security and guarding contracts, the group has managed 15 coronavirus testing sites for the UK government.
There were revenues of £187mln from the ongoing part of the Cash Solutions business that were not sold, which was down 16% year on year and said to reflect the impact of lockdown on the retail and commercial banking segments.
Overall group revenues for the five months were therefore down 1% year on year but G4S said it expects the cash business to begin to recover as the pandemic lockdown restrictions are eased, while it has won contracts totalling £1.2bn annual value so far this year.
As of the end of May, the group had £1.5bn of liquidity, comprising £0.9bn of cash, cash equivalents and bank overdrafts and earlier this month said it had three-quarters of the proceeds from the Brink's deal.
“Given the benefit of the disposal proceeds from the Brink’s transaction, the resilience of our trading performance and the benefit of the restructuring and cost saving measures, G4S currently expects to deliver resilient underlying operating profit and substantial net cash flow in 2020, placing the Group in a strong competitive position as we enter 2021,” said chief executive Ashley Almanza in the statement.
G4S shares were up 2% to 107.05p by early afternoon on Wednesday.