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

Three top-notch Asian stocks to buy
Share tips

Three top-notch Asian stocks to buy

Professional investors Adrian Lim and Pruksa Iamthongthong, managers of the Asia Dragon Trust, pick three of their favourite Asian stocks to buy now.
23 Sep 2022
Why you should short this broadband satellite company
Trading

Why you should short this broadband satellite company

With an ill-considered business plan, broadband satellite company AST SpaceMobile is doomed to failure, says Matthew Partridge. Here's how to short th…
23 Sep 2022
Share tips of the week – 23 September
Share tips

Share tips of the week – 23 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Sep 2022
Momentum investing – and why price matters more than anything else
Investment strategy

Momentum investing – and why price matters more than anything else

The recent fashion for momentum investing, with investors piling into expensive growth stocks, is nothing new, says Merryn Somerset Webb. And the dang…
21 Sep 2022

Most Popular

Could gold be the basis for a new global currency?
Gold

Could gold be the basis for a new global currency?

Gold has always been the most reliable form of money. Now collaboration between China and Russia could lead to a new gold-backed means of exchange – g…
22 Sep 2022
Paypal, bitcoin, and the weaponisation of money
Bitcoin & crypto

Paypal, bitcoin, and the weaponisation of money

Recent events have shown how both business and governments can “weaponise” money and shut down dissent. What to do? Buy bitcoin, says Dominic Frisby.
22 Sep 2022
Why you should short this broadband satellite company
Trading

Why you should short this broadband satellite company

With an ill-considered business plan, broadband satellite company AST SpaceMobile is doomed to failure, says Matthew Partridge. Here's how to short th…
23 Sep 2022