G4S Plc (GFS) said it’s is seeking to expand its cooperation with the U.K. police force after winning the first-ever contract to build and staff a police station.
The contract with the Lincolnshire Police Authority will let G4S take over all back-office operations, Chief Executive Officer Nick Buckles said. The accord is valued at 200 million pounds ($313 million) over 10 years and includes agreements with 10 other police forces that may team up with G4S, he said.
“The U.K. is definitely leading the way globally on this, but there could be a trend toward establishing it” more broadly, Buckles said on a call to discuss G4S earnings reported today. “We do the back office work, the uniformed element is still the police” hired locally, he said.
G4S beat 150 bidders to win the contract in Lincolnshire on England’s east coast, and police forces in the West Midlands and Surrey are also working on contracts worth a total of 300 million pounds, Buckles said. G4S said today it’s confident for 2012 as it prepares for additional contributions from security services at the London Olympic and Paralympic Games.
The agreement with districts near to Lincolnshire police may allow G4s to act as preferred supplier without a requirement to go through another bidding process, potentially bolstering the value of the initial accord, Buckles said.
Profit before interest, taxes and amortization adjusted for currency moves and disposals increased to 531 million pounds in 2011 from 520 million pounds a year earlier, G4S said today. Adjusted earnings per share were 22.8 pence. Panmure Gordon & Co. predicted 22.46 pence.
G4S declined as much as 12.1 pence, or 4.2 percent, to 277.4 pence in London, and traded at 283.3 pence as of 9:20 a.m. The stock has gained 9.5 percent in six months, valuing the West Sussex, U.K.-based company at about 4 billion pounds.
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