(Sharecast News) - Security services firm G4S reported a small dip in revenue for the five months to the end of May, as a solid performance in the secure solutions division was offset by weakness in the cash solutions segment due to the coronavirus lockdown.
Group revenue was down 1% compared to the same period a year ago, with revenue in Secure Solutions - which now accounts for 90% of the company's pro-forma revenues - "slightly ahead". G4S said that as expected, the impact of Covid-19 was greatest in its Europe & Middle East markets, where revenue fell 6%.
Revenue in the cash solutions division slumped 16% in the five-month period to £187m, reflecting the impact of lockdown on the retail and commercial banking segments. In April and May, they were 35% lower on the year.
Still the company said it expects the business to start recovering in the second half of the year as lockdown restrictions are eased.
As at the end of May, G4S had liquid resources of £1.5bn comprising cash, cash equivalents and bank overdrafts of £0.9bn and committed, unutilised credit facilities of £0.6bn.
Chief executive officer Ashley Almanza said: "Given the benefit of the disposal proceeds from the Brink's transaction, the resilience of our trading performance and the benefit of the restructuring and cost saving measures, G4S currently expects to deliver resilient underlying operating profit and substantial net cash flow in 2020, placing the group in a strong competitive position as we enter 2021.
"The board is confident that the group's diversified revenue base, financial strength and liquidity provide G4S with sustainable resilience and significant opportunities."
At 1345 BST, the shares were up 3.9% at 108.60p.
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