G4S wins billions in new contracts

Integrated security company G4S updated the market on its progress for the nine months to 30 September on Wednesday, with the group winning new contracts with annual revenues of £1bn and total contract value of £2bn in that period.

The FTSE 250 firm said revenues from continuing operations during the nine months were £4.82bn, up by 5.7% compared with the same period last year.

It said a combination of the organic growth and productivity programmes has produced double-digit growth in earnings and operating cash flow.

The group remains on track with its plans to reduce leverage to 2.5x net debt-to-EBITDA by the end of 2017, as operating cash flows from continuing operations have increased by more than 60% year-on-year for the first nine months, and the board claimed it is making “good progress” with its portfolio programme.

Following strong investment performance in the G4S pension scheme, the board said the G4S pension trustees have agreed a reduced annual pension deficit payment of £39m in 2016, with a 3% per annum increase until the next funding valuation.

“The group's strategy is delivering tangible benefits which are reflected in our operating and financial performance,” said chief executive Ashley Almanza.

“The strong progress made in the first half has been sustained and for the first nine months the group has delivered revenue growth of 5.7% and double-digit growth in earnings and operating cash flow.

“We still have a long way to go to realise the full potential of our strategy and we are encouraged by the group's progress and prospects.”