Share Prices & Company Research

Market News

09 Feb 2021 | 07:03

Contract wins help boost G4S's 2020 performance

(Sharecast News) - Security firm G4S, which has agreed to be taken over by US rival Allied Universal Security Services in a £3.8bn deal, said it secured contracts worth £5.5bn last year.

Updating on trading for the 2020 full year, the FTSE 250 firm said it had either won or retained contract with an annual revenue value of £3.0bn, compared to £2.5bn in 2019.

The total contract value associated with the contracts was £5.5bn. "G4S's integrated security strategy continues to differentiate our service offering in key markets and this contributed to an outstanding commercial performance in 2020," the firm said.

G4S provides a range of services for the UK government, from running prisons to managing Covid-19 test centres.

Chief executive Ashley Almanza said: "I'd like to thank my executive team and colleagues across G4S who, in the midst of the global pandemic, delivered a remarkable operating and financial performance."

Fourth-quarter revenues were in line with trends flagged at the nine-month update, while profits before interest, tax and amortisation margins "held up well", G4S said. It ended the year with net debt to earnings before interest, tax, depreciation and amortisation "well within" the target range of 2.0 to 2.5 x.

Cash flow benefited from Covid-19 related payroll and other indirect tax deferrals of around £110m. That will reverse by around £80m in 2021, but will be offset by disposal proceeds of around £100 following the sale of The Brink's Company.

In December, G4S - the world's biggest security firm, with more than 500,000 employees in 80 countries - accepted an improved 245p per share offer from Allied Universal after dismissing an initial approach for undervaluing the business.
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 14th May 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.