- G4S reported Tuesday a slump in profits as revenues slipped and the security outsourcer revealed that it would spin off its cash handling business in the second half of the year.

For the 12 months ended 31 December, statutory profit before tax fell to £143m from £387m a year earlier, and revenue slipped to £7.51bn from £7.83bn a year earlier.

Security solution, which make up 85% of group revenues, reported 3% uptick in revenue, but that was somewhat offset by weakness in its cash solutions, which reported a 9.3% decline in revenues.

The company said it would spin off its cash handling business in the second half of the year after it received offers of interest for the division from potential bidders.

This comes after the company established the Global Cash Solutions division on 1 January 2018, and announced in December 2018 that it was reviewing options for the separation of the Cash Solutions business from the Group.

But the company said no assurance can be provided at this stage that any of these expressions of interest would lead to a proposal or transaction.

'Our Secure Solutions business delivered underlying revenue growth of 3% and profit margins rose from 6.2% to 6.5% reflecting the benefits of commercial discipline, growth in the sale of technology-enabled security and productivity gains,' said G4S Chief Executive Officer Ashley Almanza.

'As expected, this was offset by the effect of challenging trading conditions in a number of Cash Solutions markets and a strong comparative performance in Retail Cash Solutions in 2017. Overall, the Group delivered underlying earnings in line with the previous year.'

'Our sales wins in the second half of 2018 have underpinned a good start to the year and this, together with growing technology-enabled services in both our cash and security businesses, supports a positive outlook for 2019.' At 9:18am: [LON:GFS] G4S PLC share price was -11.47p at 196.83p

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