(Alliance News) - G4S PLC on Thursday reported a rise in quarterly revenue and said that it has identified around GBP100 million in savings for 2020 amid the Covid-19 pandemic.
The security services company said revenue for the three months to March-end were 2.5% higher than the first quarter of 2019, with 2.9% growth in Secure Solutions business an a 2.3% decline in Cash Solutions unit.
Chief Executive Officer Ashley Almanza said: "Following growth in the first two months, revenues were unchanged year-on-year for the month of March, principally reflecting the impact of the Covid-19 pandemic on the remaining conventional cash businesses.
G4S said throughout the health crisis it has maintained a high level of business continuity and has only had to furlough employees in exceptional circumstances.
"The most significant adverse impact of Covid-19 has been, as expected, in our Europe & Middle East region across the events, leisure and tourism, aviation, ports and transport and logistics security segments and the UK cash solutions business," the company said.
The company has identified direct and indirect cost savings of around GBP100 million for 2020 and expects a GBP50 million cash flow benefit from the US federal social security tax deferral programme.
Earlier in March, the company had suspended its final 6.11 pence per share dividend payout for 2019 to conserve cash amid the virus crisis.
At March 31, G4S had liquid resources of GBP1.1 billion comprising cash, cash equivalents and bank overdrafts of GBP600 million and committed, unutilised credit facilities of GBP500 million.
Shares in G4S were up 6.5% at 104.20 pence each in London on Thursday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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