Group 4 Securicor stays silent on cuts

Enlarged security firm Group 4 Securicor today said it was on track to make the €43m annual cost savings it promised at the time of its merger.

The group has said it plans to save the cash by cutting overheads, closing national and regional offices, reducing manned security and cash service branches and merging control and monitoring centres worldwide.

However, it refused to say how many jobs will go in the Republic as part of the cuts.

The combined company, which employs more than 1,800 people on the island of Ireland, operates in more than 100 countries around the world and employs over 340,000 people worldwide.

Group 4, formed out of Securicor and Danish rival Group 4 Falck in July, said more than 90% of customers had stuck by the business during integration.

It reported a 10% hike in pro-forma earnings during the six months to June 30, with revenues up 5% at €2.68bn at constant exchange rates.

The bulk of the combined group’s business consists of the provision of security guards and the movement of cash around countries under protection.

Growth from its manned security arm in the UK was up 4% on the back of high business retention rates and customer wins that included the Royal Bank of Scotland, cable firm NTL and the Office for National Statistics.

Guards were deployed at the Wimbledon tennis championships and other special events, which helped the group to lift performance in the face of pricing pressures.

Group 4 also provides services to the UK justice system by moving prisoners from jail to court and today said the high numbers of tagged offenders in the UK spurred a strong first-half performance in this division.

But the group reported a tough time in the Netherlands where turnover fell despite new contracts with the Dutch Tax Authority, Esso and the Justice Department.

In addition, the European market for security systems faced a difficult trading environment that was particularly acute in Belgium, Germany and the Netherlands.

Chief executive Lars Nørby Johansen said: “Despite challenging conditions in some markets, our overall performance has been strong and the outlook is encouraging.”