G4S' trading update for first five months of 2020 impacted by COVID-19 pandemic.
NORDIC BUSINESS REPORT-June 18, 2020-G4S' trading update for first five months of 2020 impacted by COVID-19 pandemic
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G4S Plc (CPH:G4S)(LON:GFS), a leading global security company, on Wednesday provided a trading update for the five months of 2020, ended 31 May 2020, in view of the COVID-19 pandemic.
Group revenues were 1% lower for the five month period, as compared with the first five months of 2019, with revenues in Secure Solutions slightly ahead and a 16% decline in Cash Solutions. Group revenues in April 2020 and May 2020 were 7% lower, as compared with the corresponding period in 2019.
Secure Solutions revenues for the period were slightly up for the five months, with growth in the Americas (+6%) and Asia (+2%) and a slight decline in Africa of 1%. As expected, the impact of COVID-19 was greatest in the company's Europe & Middle East markets, where revenues declined by 6%. Secure Solutions revenues for the months of April 2020 and May 2020, declined by 4% as compared with the same months of 2019.
Cash Solutions revenues declined by 16% for the five months and in April 2020 and May 2020 were 35% lower year-on-year. The company's expects its Cash Solutions business to begin to recover in the second half of this year with the easing of COVID-19 lockdown restrictions.
Also, consistent with its prudent approach to maintain liquidity, the company's board of directors decided to suspend the 2019 final dividend payment and management has implemented robust cost control and cash flow improvement measures, including the deferral of around GBP100m of tax payments to 2021 across a number of countries.
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|Publication:||Nordic Business Report|
|Date:||Jun 18, 2020|
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