G4S Cash Solutions, which operates cash-in-transit deliveries and ATM services, has returned to an operating profit following a major restructuring process.

However, it has identified the ongoing security risks in the form of robberies, as well as a continual shift toward the use of electronic payment systems, as threats to future business.

In accounts filed to the end of 2015, G4S recorded an operating profit of €1,115,000 in 2015 as compared to an operating loss of €7,247,000 in 2014. It had revenues of €37 million last year, up from €33.3 million.

The company provides cash transportation in high-security vehicles, cash management services including secure storage and the sorting of notes for ATMs.

“There are inherent risks in this business related to external attacks, theft and reconciliations,” it said in its financial statement.

“Cash losses can have a major impact for our customers and the company in respect of loss of profit, increased cost of insurance and health and safety considerations for our staff and the public.”

It pointed to the broader economic climate and keeping pace with “ever-changing” rules and regulations impacting on the sector as other key risks and uncertainties.

“The introduction and growth of electronic payment facilities has the potential to reduce the volume of cash in circulation and have a consequent impact on the demand for some of the company’s traditional services,” it said.

“The company continues to develop solutions that cater for changing customer demands and seeks to use technology to identify product offerings that will protect its revenues and market share.”

G4S Cash Solutions is an Irish-registered company and a subsidiary of G4S Holdings. Its parent company is based in the UK.

Payroll costs

Last year G4S Cash Solutions had overall payroll costs of €21.3 million, down from €23.3 million in 2014. These figures included pension costs on a defined contribution scheme of €414,000 last year.

A defined benefit scheme closed in 2010 and was replaced with the defined contribution. Employment levels dropped from 573 in 2014 to 556 last year.

No dividends were paid out.

“Following a restructuring plan implemented throughout 2014, the company returned to an operating profit in the financial year 2015,” it reported.

“Revenues increased by over 10 per cent year-on-year due to both new business wins and volume increases with existing customers. The effects of the 2014 restructuring programme, combined with a review of all ongoing direct cost and overhead lines, were evident in the reduction in operating costs.”

The company said it had received a financial support letter from its parent company saying it would “provide sufficient financial assistance to the company if and when it is needed”.

In March, 2014, the UK parent announced it was to undertake management of Irish operations as part of a restructuring process.

Its cash-in-transit and secure solutions businesses in Ireland had been struggling due to economic conditions and pressure on contract pricing.