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G4S security staff guard a gate erected outside the Manchester Central convention complex in England on April 2, 2020.
Agence France-Presse/Getty Image
G4S shares rallied in London trade on Monday, as the company said earnings would be better than analysts had forecast and as it also reached a settlement with U.K. regulators.
G4S GFS, +9.16% shares rose 11% as the company said first-half results would be “significantly” better than analysts had forecast, and that it would publish those figures earlier than expected.
After the market had closed on Monday, G4S said it reached a deferred prosecution agreement with the U.K. Serious Fraud Office to pay a financial penalty of £38.5 million, plus a payment of £5.9 million for the SFO’s costs.
Analysts at Bank of America called the news “twin positives” and pointed out G4S trades at a discount to rival Securitas SECU.B, +3.52%. They said the news will abate concerns around cash generation and negative earnings surprises.
The FTSE 100 UKX, +1.16% overall gained over 1%, with markets across Europe advancing ahead of the start of second-quarter earnings season.
Silver miner Fresnillo FRES, +4.91% and steelmaker Evraz EVR, +3.67% led the gainers.
