November 7, 2019 / 7:48 AM / 10 days ago

UPDATE 1-G4S posts higher revenue, reviews proposals for cash business separation

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Nov 7 (Reuters) - British security contractor G4S reported higher quarterly organic revenue on Thursday, and said it was evaluating unsolicited third-party proposals for its cash solutions business.

G4S, which provides security services for the Hinkley Point C nuclear power station in Britain and the International Cricket Council, reported a 4.3% rise in organic revenue for the third quarter, logging growth in both its cash and security business.

G4S also said it had made good progress with its preparations to split its cash unit in the first half of 2020 to focus on its mainstay security operations.

The company’s cash operation, whose vans and guards transporting boxes of money are a familiar sight in Britain, accounts for 15% of revenue and operates in 44 countries.

U.S. security company Brinks Co is considering a more than 1 billion pound ($1.28 billion) takeover of the cash business, Sky News reported last month.

G4S reported 4.9% organic revenue growth in its security business in the quarter and a 4.1% rise in the cash unit.

The company, which traces its history to a Danish guarding company in 2019, is the world’s largest private security firm with more than half a million employees in 90 countries.

G4S has worked to allay investor concerns after a series of past scandals including a deadly riot that broke out at a G4S-run immigration centre on Manus Island in Papua New guinea in 2014.

Its ancillary care and justice services proved the weak spot, with a 3.2% fall in revenue in the quarter.

The unit, a small part of the security business, suffered a setback in April, when Britain said it would take over the running of a prison in Birmingham from G4S after inmate violence made the site unmanageable.

G4S also said it expects its organic growth momentum to continue into the fourth quarter. ($1 = 0.7788 pounds) (Reporting by Noor Zainab Hussain in Bengaluru Editing by Saumyadeb Chakrabarty)

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