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Date: Tuesday 13 May 2008
LONDON (ShareCast) - Security firm G4S said its underlying performance is running slightly ahead of overall management expectations, aided by a small benefit from recent euro strength.
However, the company’s shares turned lower as G4S announced in a separate statement that it plans to sell 127m new shares to reduce debt and fund expansion.
Overall organic growth improved strongly to 11% in the three months to 31 March with around 9% in developed markets and around 17% in New Markets, while margins were ahead by 0.1% on the same period last year.
In security services, organic growth remained strong as a result of improved performances from Continental Europe and North America and continued good progress elsewhere.
Cash services continued to deliver excellent organic growth, the group said, with strong performances across both developed and New Markets.
“Based on the strong underlying performance and indications of current trading, we remain very confident in the performance of the group for 2008,” said the group.