G4S, the security services and cash transportation company has reported that its pre-tax profits rose by 22 per cent as the logistics company continues to revise its business strategy towards being a services provider.
G4S reported that turnover for the company grew to £5.9 billion from £4.5bn, in its full year results. Pre-tax profits for the company were up to £264 million, up from £216m in the previous 12 months. Cash flow generation was also up by 28 per cent.
Nick Buckles, G4S chief executive said the corporate strategy is working and warned the London Stock Exchange that the good performance comes with a caveat in the current market. "Against the backdrop of ongoing economic uncertainty in 2009 we continue to focus on building customer relationships, retaining and growing existing business, winning new business, improving productivity, controlling costs and differentiating G4S with new service lines."
Buckles is pursuing a strategy of moving G4S towards being an outsourced service provider to the security and financial community, specialising in cash machine network management. The second strand of his strategy is to focus on designing, building and managing jails and detention centres for the Home Office.
G4S employs 585,000 people and its IT divisions use 6000 PCs. The company was formed in 2004 after the merger of Securicor and Group 4.