G4S sees UK operation struggle

11 March 2016 | Jamie Harris

G4S has seen revenues in the UK and Ireland fall 4.2 per cent to £1.52 billion for the year to 31 December 2015.

Operating profit in the same region fell by 11.5 per cent to £115 million.

Overall group revenue saw a slight fall to £6.86 billion, down less than half a percentage point from £6.89 billion, while group operating profit saw a sharp fall of 27 per cent to £183 million.

G4S chief executive Ashley Almanza cited the management of “onerous legacy contracts” in the UK, which were entered into before 2013.

He remained positive, however, stating that the business won new contracts with an annul value of over £1.3 billion.

Last year’s UK contract wins included a 10-year, £80 million security deal with EDF Energy, an integrated FM contract with pharmaceutical company Bayer, a cleaning deal with Pennine Care NHS Foundation Trust, and a security contract to oversee guarding and technical services at London’s Thames Tideway Tunnel.

Almanza said: “In the current economic environment we expect medium-term demand for our services to grow by around 4-6 per cent per annum.”



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