This website uses cookies primarily for visitor analytics. Certain pages will ask you to fill in contact details to receive additional information. On these pages you have the option of having the site log your details for future visits. Indicating you want the site to remember your details will place a cookie on your device. To view our full cookie policy, please click here. You can also view it at any time by going to our Contact Us page.

Improving financial performance recorded for FM businesses

11 August 2017

Better financial returns have been reported by both G4S and Interserve, although the latter continues to lost money for its construction activities.

Following its determined push to sell off under-performing divisions, G4s reported a 16.7% rise in pre-tax profits for its half year results.

It recorded a figure of £237m up to the end of June and revenues also increased to £3.97bn, a rise of 12.5%.

However, after it reported a slowing growth rate for Q2 of this year, its share prices fell by just under 6% to 312p.

The company was adversely affected by issues on the global market, including lower oil prices impacting its Middle East returns and the Indian demonetisation programme resulting in knock-on effects in that sector.

G4S grew by 1.9% in the UK and Ireland, attributed to new electronic monitoring FM and integrated security contracts.

It also plans to save between £90m and £100m by 2020 by introducing further efficiencies.

The company has sold or closed more than 20 business since 2013 and will continue with this programme by selling or closing others in the future.

Interserve also reported it had returned a profit in the first half of 2017, after it recorded a loss of £33.8m for the same period last year.

However, its pre-tax profit of £24.9m from revenues of £1.65bn included a £2m loss for its construction business over the first six months of 2017.

Its construction woes were attributed to challenging market conditions, areas of underperformance on "a small number of contracts".

Its strategy for the future includes increasing its FM and support services activities, while reducing its construction workload.

The company's return to profit was assisted by its exit from the energy from waste market, which saw substantial losses in 2016.

Print this page | E-mail this page


Article image Chequers Chosen for Parliamentary Review

Chequers Contract Services have contributed their knowledge and experience to the 2017 Parliamentary Review, in the Construction and Engineering Edition.Full Story...

Article image PFM Awards 2017 finalists announced

Successful entries selected for inclusion in the list of finalists for the PFM Awards 2017 have been announced.Full Story...

Concerns raised over data protection update

Steering a route to better mobile working

Transport for London awards new cleaning contract to ABM UK