June 17, 2020 / 1:51 PM / 19 days ago

Security firm G4S reports higher revenue at its security division

FILE PHOTO: A G4S security van is parked outside a bank in Loughborough, central England, August 28, 2013. REUTERS/Darren Staples/File Photo

(Reuters) - Private security firm G4S Plc (GFS.L) reported a slightly higher revenue on Wednesday at its mainstay security business for the first five months of 2020 and said it had won 1.2 billion pounds worth of contracts.

Shares of G4S, which employs more than half a million people in 90 countries, rose 5% as of 1315 GMT and the company said it expects a “resilient” underlying operating profit, as well as substantial net cash flow for the year.

The company’s total revenue fell 1% for the five months ended May, hurt by lower cash volumes due to coronavirus-induced lockdowns.

“Overall, we see the update as slightly ahead of expectations,” analysts at JP Morgan said.

G4S, which suspended its final dividend in April and sold most of its conventional cash transportation business earlier this year, said it had 1.5 billion pounds in liquidity at May-end.

Reporting by Yadarisa Shabong in Bengaluru; Editing by Shounak Dasgupta

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