(RTTNews) - Security solutions provider G4S plc (GFS.L: News ) on Monday said its overall revenues grew 23% in the first nine months of the fiscal at actual exchange rates and operating profit grew 25%, helped by continued strong performances in government and new markets.

In a trading update for the nine months that ended on September 30, the company said there have been no material changes in trading performance, financial position or market conditions in its businesses since the announcement of half-year results. Looking ahead, the company expressed confidence that it can deliver a strong performance in 2009 and into 2010.

"Trends from the first half continued into the third quarter, including slightly slower growth in developed markets' commercial security services, offset by continued strong performances in government and new markets. The improvement in the operating margin achieved at the half year was aintained," the security giant said in a statement.

At constant exchange rates, for the first three quarters of the fiscal, overall revenues grew 9% and operating profits grew 12%. The group's operating margin edged up by 0.1% at actual rates and by 0.2% at constant rates.

The company noted that overall organic growth was 4.2%, despite a lower inflation environment. New markets experienced about 12.3% organic growth and developed markets around 1.6%.

The company operates in two core product areas: Secure Solutions and Cash Solutions. In Secure Solutions, organic growth was 3.8% due to lower growth in Europe and North America commercial services, offset by a continued strong performance in government and new markets. Cash Solutions continued to deliver strong organic growth at around 5.9%, the company noted.
In Secure Solutions, margins were up by 0.1%. Margins in new markets were up 0.3% with strong performances in the Middle East and Africa. In Cash solutions, margins were up 0.7% from the prior year, helped by improved profitability in Europe and North America.

No significant acquisition was made since the half year. The company said its financial position continues to be strong and it has currently headroom of over GBP 550 million from committed funds. Cash flow also remains strong, it added. Further, G4S said it is on track to hit its cash conversion
target of 85% of PBITA for the full year.

Looking ahead, the company said, "Our businesses have continued to perform well despite facing challenging market conditions. In the first nine months of 2009 the group has achieved robust organic growth and margin improvement and we remain confident that we can deliver a strong performance in 2009 and into 2010."

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