Shares in G4S jump as its says it is considering spinning off cash division
Shares in security company G4S spiked this morning after the company said it was considering spinning off its armoured cash truck business.
Shares rose nearly 10 per cent to 201p this morning following the news.
The company said it is "reviewing options" for the separation of its cash solutions business, following the establishment of a cash solutions division on 1 January.
The cash division, which had revenues of £1.2bn in 2017, may list in the future, the company said.
The group has two main divisions, a security arm and a cash guarding arm. It said separating the two "has the clear potential to enhance the focus and success of both businesses and thus to unlock substantial shareholder value".
It said the review is expected to conclude during 2019.
G4S chief executive Ashley Almanza said: “The implementation of our new organisation structure in January this year enables us to consider this separation in order to enhance the strategic, commercial and operational focus of both secure solutions and cash solutions.”
And added: “The review of our separation options offers an exciting opportunity to enhance our focus for the benefit of customers, shareholders and employees.
“Our aim is to establish two strong, independent businesses that are able to take advantage of their leading market positions and excellent service offerings to deliver sustainable, profitable growth.”
G4S’s cash solutions business, which includes its Cash 360 retail technology as well as its notes and coins retailing technology Cash 360, has roughly 30,000 staff, the company estimates.