Security firm G4S battles against the decline of cash with protection officers becoming redundant


Security firm G4S battles against the decline of cash with protection officers becoming redundant

  • The business transports, processes and secures cash for businesses and banks 
  • But it is at risk from the growing use of plastic in developed markets
  • The company has a growing ‘cash technology’ arm which is quickly growing 
  • Overall, G4S profits fell 36% from £219m to £139m during the first six months

City & Finance Reporter for the Daily Mail

Security firm G4S is battling against the decline of cash.

The business transports, processes and secures cash for businesses and banks around the world but is at risk from the growing use of plastic in developed markets.

In short, that means there are fewer services for security guards. 

Security firm G4S is battling against the decline of cash

Security firm G4S is battling against the decline of cash

Security firm G4S is battling against the decline of cash

G4S bosses said: ‘To ensure critical mass and economies of scale, we focus on markets where we have, or can build, a number one or number two position in the market.’

The company has a growing ‘cash technology’ arm which runs services – such as smart safes – to help large retailers process their payments more quickly.

It believes that profits from that arm may soon overtake its traditional cash business.

Its cash processing facilities are now installed in more than 21,500 locations around the world, a 10per cent increase. Sales from the cash business fell 13.4per cent from £647million to £560million during the half-year.

The company has a growing 'cash technology' arm which runs services – such as smart safes – to help large retailers process their payments more quickly. It believes that profits from that arm may soon overtake its traditional cash business

The company has a growing 'cash technology' arm which runs services – such as smart safes – to help large retailers process their payments more quickly. It believes that profits from that arm may soon overtake its traditional cash business

The company has a growing ‘cash technology’ arm which runs services – such as smart safes – to help large retailers process their payments more quickly. It believes that profits from that arm may soon overtake its traditional cash business

Overall, G4S profits fell 36per cent from £219million to £139million during the six months to June 30. Sales fell 7.5per cent to £3.7billion.

Last year’s figures were bumped up on the back of sales of parts of the business, including in Israel and Bulgaria, which netted around £68million.

With one-off costs and income stripped out, pre-tax profits fell from £163million to £158million.

Bosses have spent £28million over the past two years on restructuring and expect to spend up to another £16million before the year is out.

They are trying to cut out costs to save up to £100million by 2020 and say savings will begin contributing to profits by the second half of the year.

Chief executive Ashley Almanza said: ‘Our contract wins and strong retention rate in the first half of 2018 provide good revenue momentum.’

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