G4S CFO steps down as group unveils rise in annual revenues

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.

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.

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

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
Central banks want politicians to take charge – but what will they do?
US Economy

Central banks want politicians to take charge – but what will they do?

The US Federal Reserve has come to the end of the road in terms of what it can do to accelerate any recovery, says John Stepek. It's over to the polit…
17 Sep 2020