G4S Posts Profit For First Half

(RTTNews) - UK-based private security firm G4S Plc (GFS.L, GFSZY.PK) Wednesday reported a profit for the first half compared with a loss last year, that included impairment charges. The company posted higher revenues for the first six-month period, with about 12 percent growth in emerging markets.

The company said demand for its services continues to be strong in emerging markets, and it is restructuring and rebuilding its UK & Ireland and European businesses.

For the first half, G4S posted profit before tax of 85 million pounds, compared with a loss of 94 million pounds in the previous year.

Group profit before interest, tax and amortization or PBITA increased to 185 million pounds from 175 million pounds last year.

Profit attributable to equity holders of the parent totaled 78 million pounds, as against a loss 196 million pounds a year ago. Earnings per share were 5.0 pence, versus a loss of 14.0 pence per share in the preceding year.

On an underlying basis, half-yearly profit attributable to equity holders amounted to 86 million pounds, an increase from 76 million pounds reported last year. Underlying earnings were 5.6 pence, up from 5.4 pence per share last year. The company has restated its prior-year results.

The prior-year period had impairment and other items totaling 124 million pounds.

Revenues increased 3.8 percent to 3.37 billion pounds from 3.25 billion pounds in the previous year. Organic revenue growth was 4.1 percent.

Emerging markets grew by 12.1 percent year-on-year to 1.2 billion pounds, and now represented 36 percent of group revenue. The growth in developed markets was in line with the prior year.

New contract sales totaled 1.2 billion pounds, up 26 percent from last year.

Chief Executive Officer Ashley Almanza said, "The group made good progress and delivered a satisfactory financial performance in the first six months winning new contracts with a total value of £1.2 billion...There remains much to be done to capture the full potential of our strategy and to strengthen the group's performance."

The company also maintained its interim dividend at 3.42 pence per share. The dividend will be paid on October 17, to shareholders of record on September 12.

GFS.L is currently trading at 262.80 pence, up 1.15 percent.