The demand for security services has surged in the US as the number of stores with in-house cash management systems has increased. This has helped the controversial private security contractor G4S to turn around its financial results.
It appears that Cash360, the new product offered by G4S in the US, has been grabbed by customers, and this demand appears to have made the US the contractor’s biggest market.
Cash360 first requires store cashiers to place cash into a hi-tech safe that is equipped with technology to weed out counterfeit notes. The sorted notes are then placed into bags, which are collected by G4S personnel and transported to their destination in a secure vehicle.
In April 2016, G4S signed a five-year contract with retail giant Walmart for £173 million for its Cash360 services. The private security contractor stated that its new product has been instrumental in significantly reducing theft.
G4S also has a number of contracts with the US Department of Homeland Security, and it is responsible for transporting illegal immigrants in certain parts of the country.
The world’s biggest security contractor revealed that sales across the group have increased by 6 per cent to reach £6.8 billion, and its profits have increased by 14 per cent to reach £352 million. These figures are for 2016.
The US arm of the firm has also grown by 12.4 per cent, while sales in the UK and Ireland have increased by 1.5 per cent.
Figures reveal that G4S has managed to win several new contracts in 2016 and they amounted to about £1.3 billion. Even after the controversies that have plagued the private security contractor in Britain, it has managed to hold on to 90 per cent of its existing contracts.
This increase in profits and sales is considered remarkable for a firm that suffered tremendous losses due to contracts with the UK Government and its inability to supply enough security guards for the 2012 London Olympics.
G4S revealed that it is going to focus more on security technology for the private sector, and it hopes that this will further boost its sales and profits.