Company sees challenging trading conditions in Middle East & India
Shares in G4S (LON:GFS) have fallen into the red in today’s session even as the company revealed that its revenue and profits grew last year. The company, however, suffered from downbeat performance in the Middle East and India where it continues to face challenging trading conditions.
As of 12:14 GMT, G4S’ share price had given up 2.84 percent to 256.50p, underperforming the broader UK market, with the benchmark FTSE 100 index having climbed into positive territory and currently standing 0.14 percent higher at 7,167.74 points. The group’s shares have lost more than 10 percent of their value over the past year, as compared with about a 2.3-percent fall in the Footsie.G4S posts full-year results
G4S reported in a statement today that core businesses revenue had climbed 3.2 percent to £7.42 billion last year, while its adjusted profit before interest, taxes and amortisation had come in 4.2 percent higher at £496 million. The group’s operating cash flow, however, dipped 16.7 percent to £527 million.
G4S declared a five-percent rise in final dividend to 6.11p per share, taking its full-year payout to shareholders to 9.70p per share.
“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 group’s chief executive officer Ashley Almanza commented in a statement, adding that the outlook for the group remained ‘positive’.Downbeat Middle East and India performance
G4S, however, suffered from downbeat performance in the Middle East and India, where the group’s secure solutions businesses faced challenging trading conditions. Revenue in the region dipped 5.1 percent while adjusted PBITA across the region declined 28.4 percent.
The results come after in November, the security specialist lowered its revenue growth outlook on the back of disappointing performance in the region.