Group 4 to sell German business

Angol-Dutch Security firm Group 4 Securicor today said it was in talks to sell its struggling German cash services business as it reported a 4.7% increase in first-half earnings.

Pre-tax profits lifted to £120.1m (€176.2m) for the six months to June 30 from £114.7m (€168.3m) last year – slightly below City forecasts which sent shares down almost 1%. Turnover grew 8.5% to £2.19bn (€3.1bn).

The Anglo-Danish firm said it had delivered a “solid set of results” and was confident of achieving “a strong underlying 2006 and future performance”.

Group 4 added it had seen strong performances in its US and new markets businesses but some of its European security services markets – including Greece and Sweden – were under pressure.

The UK business shrank over the six months but “is expected to return to positive organic growth in the second half”, the firm said.

Overall in Europe, organic growth of 4.5% was achieved, compared with 3.1% for last year. In the US, organic growth was 7.8% while new markets – including India, Kazakhstan, Macau and Argentina – continued strongly at 17.4%.

Nick Buckles, chief executive, said: “The performance of our cash services business in Germany has deteriorated further, and we have recently entered into substantive discussions for the divestment of the business.”

He added: “The pricing environment continues to be difficult and, unless, and until, this changes, the business will continue to perform poorly.”

Group 4 Securicor was created through the merger of Securicor with Danish rival Group 4 Falck in July 2004.