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G4S sets out US cash ambitions amid bid battle
16th Nov 2020 07:37
(Sharecast News) - G4S predicted its retail cash solutions (RCS) business would increase revenue by 25% a year to hit $600m (£454m) by 2025 as it sought to beat off a hostile bid from Canada's GardaWorld.
The security company said the business was "market-leading and extremely valuable" and had grown rapidly and profitably since launch in 2015.
The US cash management business has an addressable market of €13bn and is protected by high barriers to entry and patented software, G4S said. RCS should be compared with technology companies valued at more than 20 times earnings, G4S said in a presentation to investors.
G4S highlighted RCS's potential as it battled to repel a hostile takeover attempt by GardaWorld. The FTSE 250 company also revealed on 3 November it had rejected an indicative offer from US rival Allied Universal.
Chief Executive Ashley Almanza said: "With its patented technology and strong growth, margins and cash flow conversion, RCS benchmarks favourably with financial technology and software services businesses that command premium ratings. We believe that RCS provides G4S shareholders with material value upside."
The company's presentation drew scorn from GardaWorld whose £3bn offer G4S rejected in October.
A spokesperson for the Canadian group said G4S had promised "more jam tomorrow" and added: "The attempt to position G4S as some kind of embryonic fintech 'disruptor' is delusional and, frankly, insulting to shareholders."
G4S shares rose 0.4% to 213.8p at 13:28 GMT.
The security company said the business was "market-leading and extremely valuable" and had grown rapidly and profitably since launch in 2015.
The US cash management business has an addressable market of €13bn and is protected by high barriers to entry and patented software, G4S said. RCS should be compared with technology companies valued at more than 20 times earnings, G4S said in a presentation to investors.
G4S highlighted RCS's potential as it battled to repel a hostile takeover attempt by GardaWorld. The FTSE 250 company also revealed on 3 November it had rejected an indicative offer from US rival Allied Universal.
Chief Executive Ashley Almanza said: "With its patented technology and strong growth, margins and cash flow conversion, RCS benchmarks favourably with financial technology and software services businesses that command premium ratings. We believe that RCS provides G4S shareholders with material value upside."
The company's presentation drew scorn from GardaWorld whose £3bn offer G4S rejected in October.
A spokesperson for the Canadian group said G4S had promised "more jam tomorrow" and added: "The attempt to position G4S as some kind of embryonic fintech 'disruptor' is delusional and, frankly, insulting to shareholders."
G4S shares rose 0.4% to 213.8p at 13:28 GMT.