Security firm profits rise 'solid base' for merger

Security group Securicor today said it was well placed for its merger with Danish rival Group 4 Falck after posting a 20% increase in profits.

Securicor said pre-tax profits before one-off items and goodwill in the six months to March 31 were £39m (€58.5m) against £32.4m (€48.6m) last time.

The group said the results provided “a solid base” for the link-up with Group 4 Falck, which it expects to complete later in the summer.

The deal will give it a 42.5% stake in the newly enlarged company.

Securicor said it had seen organic turnover growth of 5% during the period and “very strong” cash generation. The interim dividend to shareholders increased by 10.3% to 0.86p per share.

Chairman Lord Sharman said: “We have maintained our good start to the year.”