G4S reports third quarter revenue growth in line with expectations
G4S said its trading in the third quarter was in line with expectations with organic revenue growth up 4.2% compared to a year ago.
The security company’s results in the nine months to the end of September were supported by new contract wins at a total value of £1.7bn, which will generate annual revenues of over £870m.
The group ended the period with a sales pipeline of £5.1bn.
The contract wins come as upbeat news for the troubled private security firm, which has come under fire for the alleged overcharging on electronic tagging and prisoner escort contracts.
G4S underwent a corporate transformation, which it said has resulted in underlying profit before interest, tax, and amortisation and earnings growth.
An improvement in profits in the half year carried into the third quarter and is expected to continue for the full year. Operating cash flow for the nine months picked up.
During the third quarter, the group signed a binding sale and purchase agreement for the sale of its US government solutions business for $135m, comprising cash proceeds of $80m and retained receivables of $55m.
"We are executing a clear and focused strategy which is delivering tangible benefits,” said chief executive Ashley Almanza.
“Our trading performance is in line with our plans, reflecting double digit revenue growth in emerging markets, the return of strong growth in North America and, as expected, a 1% decline in revenues in the UK and Europe. Our trading performance in 2014 and the on-going implementation of our performance improvement plans are expected to provide good momentum for the group in 2015.”