British security giant G4S unveiled a rise in 2012 revenues despite taking a hit over its London Olympic contract blunder, and at the same time announced the resignation of Chief Financial Officer (CFO) Trevor Dighton.
The company revealed a 10.4% year-on-year increase in total turnover of £7.5bn. Annual profits excluding the Olympics rose 6.0% £516m. The group also increased its full year dividend by 5.0% to 8.86p per share.
G4S has come under the microscope since its bungled London Olympics contract last year when it had to call in soldiers on leave as it failed to hire enough security guards for the two-week event.
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Last month the firm said the Olympic shambles would cost around £88m, including donations and marketing costs.
Nevertheless, the company's annual results flew in the face of the scandal.
"Our 2012 financial results reflect the significant exceptional costs associated with the Olympic contract and our overhead reduction programme together with the large impairment charge related to the discontinued US Government Solutions business," Chief Executive Officer Nick Buckles said.
"Despite these issues, the underlying business has performed well in 2012 with an acceleration in organic turnover growth to 7.0% and with margins holding at over 7.0%. The acceleration in organic growth was due largely to a number of new North American commercial and UK government contracts and continued strong growth in developing markets and was achieved despite continued economic challenges in Europe."
CFO announces plans to retireCFO Dighton will step down from the position on April 30th and from the board following the company's annual general meeting on June 6th.
He will continue to work for the group on a number of projects to ensure a smooth handover to his successor Ashley Almanza, former CFO of BG Group.
"Trevor signalled his intention to retire from the board at the age of 65 and I would like to thank him for having dedicated 18 years to the group during which time he has been a key part of the senior management team and helped to create the world leader in secure solutions," Buckles said.
"We are delighted to announce the appointment of Ashley, a high quality respected executive with extensive international business experience. We look forward to him joining the board and the management team on 1st May."
RD
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