G4S making “good progress” in 2016, shares up 10%

g4s

Shares in security firm G4S soared on Wednesday after the company disclosed stronger-than-expected figures for the year to date.

The company saw a 5.7 percent increase in revenues in the first nine months of the year, alongside a 60 percent increase in cash flow. In a statement, G4S said they were making “good progress” with their portfolio programme and had won several new contracts this year worth £2 billion.

G4S Chief Executive Officer Ashley Almanza commented:

“The Group’s strategy is delivering tangible benefits which are reflected in our operating and financial performance. The strong progress made in the first half has been sustained and for the first nine months the Group has delivered revenue growth of 5.7 percent and double-digit growth in earnings and operating cash flow. We still have a long way to go to realise the full potential of our strategy and we are encouraged by the Group’s progress and prospects.”

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G4S have been embroiled in a number of controversies in recent years, including the revelation that the man who shot over 100 people in an Orland nightclub earlier this year was in their employment. Issues relating to their handling of the security of the London Olympics in 2012 led to the resignation of ex-CEO, Nick Buckles.

G4S (LON:GFS) shares have soared nearly 10 percent on the London market today, currently trading up 9.54 percent at 241.10 (1440GMT).

G4S are one of the biggest global integrated security companies specialising in the provision of security products, services and solutions. The group is active in around 100 countries and is the largest employer quoted on the London Stock Exchange with over 610,000 employees. They are set to release results for the twelve months to 31st December 2016 on the 8th  March 2017.