(Alliance News) - G4S PLC on Wednesday outlined plans to resume its dividend and boost earnings as the security services firm continues to brush aside takeover attempts.
Yet again setting out its defence in the wake of rejecting a pair of takeover attempts, G4S on Wednesday said it is confident of achieving annual revenue growth between 4% and 6%, as well as profit margin growth the 7% in the medium term.
Free cash flow "in excess" of GBP1 billion is targetted between 2021 and 2025, G4S added.
"G4S has a bright future as an independent company with significant value upside for shareholders. The board believes that G4S has significant potential to re-rate as a result of its above-market growth outlook, higher margins from integrated security services and the material value upside in Retail Cash Solutions," Chair John Connolly said, referring to the RCS cash handling unit.
Connolly added: "The company's resilient performance and positive outlook enables it to resume the dividend for 2021 and provides clear potential for significant further cash returns to shareholders."
G4S suspended its payout back in July, instead prioritising its financial strength in the face of the Covid-19 pandemic.
The statement from G4S comes after the firm rebuffed two takeover attempts, one from Canada's Garda World Security Corp and another from US company Allied Universal.
In September, the board of the FTSE 250-listed firm rejected Montreal-based GardaWorld's cash offer, saying it undervalued the company. However, in October, GardaWorld directly approached G4S shareholders with the same GBP3 billion offer.
And earlier in November, the directors of G4S rejected a GBP3.25 billion bid from Allied, again stating that it undervalued the business.
The "at least" 210p per share bid did, however, give Allied Universal the edge over Canadian rival suitor GardaWorld, whose bid was 190p.
G4S shares were 0.2% higher at 228.60 pence each in London on Thursday morning.
"The GardaWorld Offer does not remotely reflect G4S's fundamental value, let alone its value to GardaWorld and BC Partners. We urge shareholders to take no action in relation to GardaWorld’s Offer," Connolly added on Wednesday.
On the GardaWorld offer, G4S said it has entered into a non-disclosure pact with the company to provide it with equal access to information, under UK City Code on Takeovers and Mergers rules.
By Eric Cunha; ericcunha@alliancenews.com
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