The Irish operations of British security services group G4S are set to be managed from Britain in the latest move by its parent company to restructure the business here.
G4S said it is “realigning its operations in the UK and Ireland to better meet demands of its customers and the marketplace” to grow the business and “successfully execute its future strategy”.
"As part of this organisational realignment the G4S Cash and G4S Secure Solutions business in Ireland will come under the umbrellas of our Cash UK and Secure Solutions UK businesses respectively," the company said.
Contract prices
G4S's cash-in-transit and secure solutions businesses in Ireland have struggled in recent years due to the economic crash and downward pressure on contract prices.
Last summer G4S Cash Solutions Ireland Ltd warned customers that, unless they agreed to revised terms and higher prices, its UK-based parent company would withdraw its financial support for the loss-making business.
In a presentation to clients to outline its financial difficulties, the company forecast a loss before interest, tax and amortisation of €10.07 million for 2013. Its turnover declined from €48.2 million in 2009 to an expected €38.5 million last year.
'Challenging'
Latest accounts for G4S Secure Solutions (Ire) Ltd, which provides a range of security services to customers, show it made an operating loss of €577,293 in 2012 on turnover of €76.2 million. It described the competitive environment as "challenging", and said a business improvement plan continued to be implemented.
G4S said Niall Feely, the Dublin-based managing director of its secure solutions business, would remain at the company "whilst we transition to the new regional structure".
Mr Feely joined the company from Eircom in 2010.
G4S said it was also recruiting for a head of its cash solutions business here. The previous holder of the role has been on secondment for the past year, it added.
The company said the restructuring was designed to “improve the performance” of the Irish business.
“G4S remains committed to the Irish market and will continue to operate through its Irish subsidiaries,” it said.” This will allow greater access to best practice and expertise in cash, manned security, fire and security technology systems.”
Speculation has mounted that G4S might withdraw from certain services in Ireland. In response, the company said: "G4S remains committed to the Irish market. Like any large global operation we continue to keep our portfolio under review but there are no immediate plans in this regard."
Redundancies
G4S added that there were "no immediate plans for redundancies" at its Irish operations.
Last year about 30 redundancies were agreed with workers at its cash solutions business, along with changes to certain terms and conditions. It also closed its Athlone and Tralee branches.
G4S has a 63 per cent share of the cash-in-transit market in Ireland and transports about €50 million around the State each day.
Its parent company, which has struggled with a series of missteps since a London Olympics contract fiasco, is listed on the London and Copenhagen stock markets.
