G4S becomes latest to consider dropping quarterly reports

G4S, the world's biggest security provider, has become the latest company to reduce their number of trading updates following a change in regulatory rules last November.

The FTSE 100 outsourcer said it would not issue a first quarter trading update to the stock market and was reviewing whether it would make a third quarter statement. Several other companies including Unilever and National Grid have switched to a lighter reporting regime, in a move they claim will save money and free up time for senior management.

G4S said the long-term nature of its contracts and a 90 per cent retention rate meant it had "higher visibility of earnings than some other businesses". "G4S is focused on building a long-term growth profile and we'll commit to providing separate updates on the programmes and initiatives driving that," the company said.

The move follows a ruling in November last year by the Financial Conduct Authority that listed companies did not need to publish interim management statements. The changes, which bring the UK into line with European reporting rules, are part of the regulator's "transparency directive".

G4S said it had decided not to publish a first-quarter management statement this year in part because of the proximity to the announcement of its 2014 results, which were posted on March 10. Its first quarter 2015 figures had been due on May 13.

Stephen Rawlinson, analyst at Whitman Howard, said the change was unlikely to cause any concern. "As long as they inform the market if there is a deviation from current expectations then it shouldn't matter," he said.

On Friday it emerged that Ashley Almanza, chief executive of G4S, had been rewarded with a 73 per cent pay increase for returning the outsourcing group to profit after scandals surrounding staffing at the 2012 Olympics and overcharging on contracts.

Mr Almanza, who took the helm of G4S in May 2013 following the departure of Nick Buckles, earned £2.5m in 2014. His pay was boosted by a £1.3m cash bonus, up from £648,000 the previous year. His base salary rose to £890,000 in 2014. He had received £600,000 the previous year.

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