G4S boosts profits

Mar 16 2010 By nebusiness

Security group G4S today said its "breadth and international diversity" helped it grow profits last year despite the challenging economic conditions.

The company - the largest employer quoted on the London Stock Exchange, with 595,000 staff in more than 110 countries - posted a 10% rise in profits from continuing operations to £500.3m.

Turnover lifted 7.4% to £7b with the figure up 3.7% on a like-for-like basis. This was lower than the 9.5% growth reported in 2008 as low inflation limited the company’s ability to increase prices.

However, G4S said sales volumes have held up well and added that it expected to maintain last year’s level of organic growth during 2010.

The firm, which provides services ranging from cash transportation to facilities management, has been buoyed by contracts from Government and new markets.

This has helped offset tougher conditions for commercial security services amid the recession.

Contract wins have included the running of two immigration detention centres for the UK Border Agency, at Brook House and Tinsley House near Gatwick.

Other notable contracts include facilities management for the Olympic Delivery Authority and the Ministry of Defence, as well as the first contract to monitor offenders in Northern Ireland.