GFS.L Share News (GFS)

(Sharecast News) - Security services company G4S reported a small increase in group revenues for the first quarter on Thursday and said it had identified savings of around ?100m.
Group revenues rose 2.5%, with 2.9% growth in the Secure Solutions business and a 2.3% decline in Cash Solutions. G4S said revenues in March were broadly unchanged year-on-year.

The company said that so far during the pandemic, it has managed to maintain a high level of business continuity and has only had to furlough employees in "exceptional circumstances".

As expected, its events, leisure and tourism, aviation, ports and transport and logistics security segments across the Europe & Middle East region have seen the biggest hit from the virus, along with the UK cash solutions business.

G4S, which announced in March that it was suspending its 2019 final dividend payment, said it was also deferring around ?50m tax payments to 2021 under a US federal social security programme. In addition, it is reducing direct and indirect costs by around ?100m this year.

Chief executive Ashley Almanza said: "Despite the economic uncertainty, the board is confident that the group's diversified revenue base, financial strength and liquidity provide the group with substantial and sustainable resilience.

"With the sale of our conventional cash businesses and the actions we are taking in response to the pandemic, we aim to emerge as a leaner and focused market leader in the global delivery of technology enabled security solutions."