LONDON (Reuters) - British security group G4S (L:GFS) reported higher revenue growth in the third quarter helped by a stronger performance in the United States, boosting its shares on Wednesday.
Revenue from continuing operations in the first nine months rose 5.7 percent to 4.82 billion pounds, up from 5.1 percent growth in the first half, while earnings and cash flow showed double-digit growth, it said.
Shares in G4S, which runs services ranging from manned security in prisons to cash transport and management, were up 8.8 percent after the update and at 239 pence at 1212 GMT.
In an update before investor presentations, the group said it remained on track to reduce leverage to 2.5 times net debt over core earnings by the end of 2017.
The group's main growth driver was its U.S. business, a spokesman said, which accounts for one quarter of revenues and saw "accelerating sales in the third quarter, supported by strong demand for its Cash360 cash management product".
Cash360 is a combined software and equipment product which enables retailers to automate their in-store cash tally.
G4S is also benefitting from the pound's weakness versus the dollar, boosting revenues in pounds, although further detail of this was not provided.
"We've seen a particularly good performance in the U.S. and a continuation of growth trends in other regions, with the exception of the U.K. which remains quite flat as expected," he said.
Britain accounts for less than one fifth of revenues at security group, where high-profile contract problems had tarnished its image.
U.K. business is still performing as expected despite the unexpected June vote to leave the European Union.
Some analysts had predicted the vote could make companies vulnerable to a backlog on decision-making in Britain until its new trading and political relationships are decided.
G4S has also had problems abroad and in June Omar Mateen, one of its employees, killed 49 people in a Florida nightclub. The company says it carries out comprehensive checks on all security employees.
