G4S shares tumble after revising down revenue targets
The FTSE 100 firm dropped more than 5%, making it the top tier’s biggest faller.
Shares in G4S have sunk after the security services giant rolled back its annual revenue targets and saw sluggish trading in the Middle East and India.
The FTSE 100 firm dropped more than 5% – making it the top tier’s biggest faller – as it tweaked full-year organic revenue forecasts from between 4% and 6%, to 3%-4%.
The group, which employs around 585,000 staff worldwide, said it still expects a “good profit” for 2017.
In a stock market update, chief executive Ashley Almanza said trading for the nine months was in line with expectations, with the Middle East and India standing out as the only areas failing to add to its 4.4% growth in organic revenues over the period.
Stripping out the impact of those areas, organic revenues expanded by 6.1% over the nine-month period.
David Cheetham, chief market analyst at XTB online trading, said the group’s stock price slump was dragging on London’s premier index.
He added: “A downward revision to its revenue growth forecast for this year from 4%-6% to 3%-4% has come as a negative shock and has clearly irked investors who are exiting the stock in droves.”
G4S announced in August that pre-tax profits had risen 16.7% to £237 million in the six months to June 30, with revenue climbing 12.5% to £3.97 billion.