International security solutions firm G4S said profits in the first three months of 2012 were, as expected, at similar levels to the corresponding period of last year.
Overall organic year-on-year revenue growth was 7%, or 6% excluding the Olympic Games contract. That represents an improvement on the 4.5% organic growth rate the group achieved in 2011. Organic growth in developing markets was 11% in the first quarter of 2012 while for developed markets it was 4%.
In secure solutions, organic growth was 7% with good performances in the UK, helped by the Olympic Games contract, continued strong developing markets growth and further improvement in North American commercial businesses and Continental Europe.
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The cash solutions business saw organic growth of 4%, with 10% growth in developing markets, and with progress made, but to a lesser extent, in developed markets. The low growth in developed markets was due to contract losses in the UK, which have since been replaced and added to with new contracts wins.
Overall margins were down 0.4% as expected, due to contract start-up phasing in the UK cash solutions and government businesses and US government budgetary cuts.
Looking forward, the company said organic growth has continued to improve in developed markets and remains strong in developing markets, and the organic growth rate is expected to continue to improve during 2012. Contract phasing and the US government market will continue to have an impact on margins in the short term but margins will improve in the second half of the year.
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