GFS.L Share News (GFS)

(Sharecast News) - Security contractor G4S said on Thursday that it had beaten first-half profit forecasts and expects to see an increased demand for thermal cameras and screening personnel as the globe looks to adapt to a "new normal" in the post-coronavirus-related lockdown world.
G4S reported an adjusted operating profit of £187m for the six months ended 30 June, down 4.6% year-on-year but beating estimates of £159m, while underlying revenues of £3.35bn were just shy of the £3.4bn recorded a year earlier. Earnings per share were flat on 6.3p but well ahead of estimates of 4.3p.

However, the FTSE 250-listed firm said it was not yet prepared to resume dividend payments as the net financial costs of the pandemic for parts of the group that received government employment support was estimated at £20-25m - largely due to lost revenues and cost increases.

Chief executive Ashley Almanza said: "G4S is at an important inflection point as we accelerate our transition to a highly focused global integrated security business.

"The benefits of our strategy, focused execution and timely response to Covid-19 are reflected in the group's results with resilient revenue, earnings and cash flows reported for the first six months."

Revenues from secure solutions were £3.1bn, flat on 2019, while revenues from cash solutions were £220m - down over 18% year-on-year.

As of 1055 BST, G4S shares were up 6.55% at 145.55p.