LONDON (Reuters) - G4S (COP:G4S), the British group that stocks ATMs, runs prisons and protects airports, met expectations with a 5 percent rise in first-half adjusted operating profit, and said productivity improvements would continue to feed through in the second half.
The company, whose reputation was damaged by a failure to deliver security at the London 2012 Olympics and by overcharging in a contract to tag criminals the following year, has been streamlining its portfolio to strengthen earnings.
The security group posted profit before interest and tax of 193 million pounds ($300.5 million), broadly in line with analyst consensus of 194 million pounds, on underlying revenue of 3.3 billion pounds, up 2.8 percent.
Chief Executive Ashley Almanza said G4S had sold 16 businesses over the last two years and was "well on the way" to selling a further 18 units and closing 12. Those 46 businesses had combined revenue of 1.1 billion pounds but profits of just 3 million pounds, he said.
"Our contract portfolio is getting better and we are more disciplined about the contracts we take on," he told reporters.
"We are making progress on all fronts. That is reflected not only in our results for the first six months, but in a growing and diverse pipeline of opportunities."
New contract sales were 1.4 billion pounds, with retention rates maintained at about 90 percent, it said, while its sales pipeline stood at 6 billion pounds in annual contract value.
Shares in G4S, which have fallen 14 percent since they reached a near two-year high in April, were trading down 0.7 percent at 265 pence by 0809 GMT, outperforming a 1.5 percent fall in the FTSE 100 index on Wednesday.