Surrey-based security group Securicor said it was well placed for its merger with Danish rival Group 4 Falck after posting a 20% increase in profits.

Securicor said pre-tax profits before one-off items and goodwill in the six months to March 31 were £39 million against £32.4 million last time.

The group said the results provided "a solid base" for the link-up with Group 4 Falck, which it expects to complete later in the summer.

The deal will give it a 42.5% stake in the newly enlarged company.

Securicor said it had seen organic turnover growth of 5% during the period and "very strong" cash generation. The interim dividend to shareholders increased by 10.3% to 0.86p per share.

Chairman Lord Sharman said: "We have maintained our good start to the year."

Securicor announced in February that it planned to merge with Group 4 Falck to create a company with annual sales approaching £4 billion.

The combined group will be 57.5% owned by Group 4 shareholders and 42.5% by Securicor shareholders.

It will have its headquarters in the UK and its shares will be listed on the London and Copenhagen stock exchanges.

The new venture is expected to employ around 340,000 staff worldwide, although Securicor - which currently employs more than 100,000 staff - said at the time that it was not known how many job cuts would result from plans to save £35 million a year.

Monday May 10, 2004