LONDON (Alliance News) - G4S PLC saw its shares jump to lead the FTSE 100 Wednesday after the company said that it has performed in line with its plans during the first quarter of 2014, boosted by contract wins with annual revenues of more than GBP440 million.
In an interim management statement for the three months to March 31, 2014, the security firm said revenues were up 4.8% on the first quarter in 2013, with organic growth up 5.0%.
Emerging markets organic revenue rose 16%, with G4S reporting double-digit growth across all of its emerging markets regions, while developed markets' revenue was flat on the previous year.
During the first three months of the year, G4S said it has won new business contracts with annual revenues of more than GBP440 million, including retail and services customers in the US, retail customers in Brazil, port security consultancy in the Middle East, cash solutions contracts in the Netherlands and significant new business with the UK Government.
In April, the firm was boosted by the UK governments positive assessment of its Corporate Renewal Plan - an integral part of the group's wider corporate transformation plan. The UK Government accepted that the security firm's corporate renewal plan was showing a move in "the right direction." In a statement last month, the Cabinet Office said that following "material concerns" that emerged last year, relating to overcharging on Ministry of Justice electronic monitoring contracts, G4S has "engaged constructively with the Government."
The firm became eligible to bid for new UK government contracts after a ban period. G4S, along with rival Serco PLC were placed under investigation by the UK government in July last year and all their government contracts were placed under review, after details from an audit emerged showing that they had been over-charging on criminal tagging contracts, claiming for people who were dead, who had never been to prison, or never tagged in the first place. In November, the Serious Fraud Office opened a criminal investigation into the tagging contracts.
G4S Chief Executive Ashley Almanza said Wednesday, "Our trading performance is in line with our plans, reflecting strong growth in emerging markets and satisfactory performance in developed markets. We continue to implement a group-wide transformation programme which is focused on embedding our group values, restructuring key businesses and investing in organic growth, technology, innovation and cost leadership and which supports our long term objectives of delivering sustainable growth in earnings, cash flow and dividend."
G4S shares were trading 2.25% higher at 245.7 pence per share, the biggest gainer on the FTSE 100 Wednesday morning.