LONDON (Alliance News) - G4S PLC on Wednesday said it expects its annual profit to be in line with the prior year despite revenue growth across all of its divisions.
The FTSE 250-listed security services company registered organic revenue growth of 2.5% year-on-year in the three months to the end of September. For the first nine months of 2018, revenue grew by 1.1%.
On a divisional basis, revenue in the Secure Solutions unit was up 2.5% on the prior year. The company noted organic revenue growth in the security segment was partially offset by lower revenue in care & justice services.
On a regional basis, in Africa and Asia Secure Solutions' revenue growth was 3.6% and 6.5% respectively. In the Americas, revenue rose by 5.7%.
In Europe & Middle East, security revenue was up 0.2% as growth in the UK & Middle East was partially offset by lower revenue in the Benelux, reflecting self-constrained bidding in tight labour markets, G4S said.
Turning to the Cash Solutions unit, organic revenue growth in the third quarter was 2.9% year-on-year. G4S said strong revenue growth in technology enabled cash solutions more than offset lower revenue in conventional cash services.
The company now has over 23,000 cash automation locations, up from 21,500 it had at the end of first half.
Looking forward, G4S expects profit before interest, tax and amortisation for 2018, after investment in new products and services, to be in line with 2017 on a constant currency basis.
"Strong organic growth rates in security services in North America and Asia and in Cash technology solutions were partially offset by lower revenues in Benelux and conventional cash services," explained Chief Executive Ashley Almanza.
"We continue to exercise commercial discipline in markets where labour supply is tight and whilst this is expected to constrain revenue growth in 2018, our new contract wins and substantial, high quality pipeline provide good momentum into 2019," added Almanza.
The company will announce its annual results on March 12.
G4S shares were trading 9.,3% lower on Wednesday at 196.20 pence each.
