TOP NEWS: G4S Increases Payout On Solid 2017 Financial Performance

LONDON (Alliance News) - Security services firm G4S PLC raised its dividend on Thursday as both profit and revenue rose in 2017, though the former figure did come in short of analyst consensus.

G4S's adjusted profit before interest, tax, and amortisation for 2017 came in at GBP491.0 million, 6.5% higher at actual currency rates than 2016's figure of GBP461.0 million. However, this was short of analyst consensus which forecast PBITA of GBP502.0 million.

Revenue for 2017 was GBP7.83 billion, 3.1% up year-on-year from GBP7.59 billion at actual currency rates, and above consensus of GBP7.50 billion. G4S had originally been guiding for revenue growth of between 4.0% to 6.0% in 2017, but downgraded this at the end of its third quarter to a range of 3.0% and 4.0%.

In G4S's core business, revenue at constant currency exchange rates rose 3.2% to GBP7.43 billion with adjusted PBITA increasing 4.2% to GBP496.0 million.

Pretax profit for 2017 on a statutory basis was GBP386.0 million compared to GBP311.0 million, and in the core business it was GBP383.0 million, slightly up from 2016's GBP375.0 million.

G4S has increased its final dividend by 5% to 6.11 pence per share. This takes the firm's total payout to shareholders to 9.70p for 2017 compared to 9.41p in 2016.

Revenue in G4S' Secure Solutions business rose 3.4% year-on-year to GBP6.22 billion, with adjusted PBITA up 2.9% to GBP385.0 million. In Cash Solutions, revenue rose 2.3% to GBP1.21 billion and adjusted PBITA increased 5.3% to GBP160.0 million.

Growth in other markets offset difficult Middle East & India trading for Secure Solutions, while strong volume growth drove Cash Solutions performance in 2017.

Chief Executive Ashley Almanza said: "G4S has delivered another year of profitable growth and good cash generation, enabling us to invest in our growth, technology and productivity programmes and, at the same time, strengthen our balance sheet.

"The outlook for the group is positive: our strong market positions, commercial discipline, growing technology-related revenues, positive cash generation and on-going productivity programmes provide substantial confidence that the group is well positioned to deliver a strong performance over the next three years."

Shares were up 3.0% early on Thursday at 272.00p each.