Security giant G4S Ireland back in black after successful restructuring
The Irish arm of security giant G4S returned to operating profit in 2015 after a restructuring.
New accounts show that G4S Cash Solutions Ireland recorded an operating profit of €1.1m in the 12 months to the end of December 2015 and this followed the firm recording an operating loss of €7.2m in 2014.
The company returned to operating profit after revenues increased by 11pc to €37m.
However, finance expenses of €1.75m pushed the firm into the red to a record a pre-tax loss of €606,000.
The loss though is only a fraction of the €8.3m pre-tax loss sustained in 2014.
According to the directors report, the revenues increased due to both new business wins and volume increases with existing customers.
"The effects of the 2014 restructuring programme, combined with a review of all ongoing direct cost and overhead lines, were evident in the reduction in operating costs," the report said.
The directors added that the company continues to operate in a challenging, competitive environment where cost control is vital to ensure that the recovery of the trading performance is sustainable.
"Nevertheless, the outlook for the company is positive and the directors are satisfied that the demand for services is strong and the company retains the capability to deliver those services," the report stated.
Numbers employed by the firm last year reduced from 573 to 556.
The loss last year takes account of €820,000 in restructuring costs that included redundancy costs of €614,000.
The firm's restructuring costs in 2014 totalled €2.78m and this followed a spend of €6.9m under the same heading in 2013.
The restructuring of the business in 2014 included redundancies at all levels, the closure of certain branches within the company's network and the write off of obsolete assets.
The company's cash pile increased from €23.85m to €48.9m.
Staff costs declined in 2015 going from €23.3m to €21.5m
On the firm's principal risks and uncertainties, the directors cited electronic payments as a risk, pointing out that the introduction and growth of electronic payment facilities has the potential to reduce the volume of cash in circulation.
The directors stated that the company continues to seek to use technology to identify product offerings that will protect its revenues and market share.