Shares in G4S were up on the FTSE 100 in morning trading after the security company said that overall revenues grew 5.6 per cent in the first nine months of the year.

The group said that overall organic growth was 2.1 per cent, with developed markets seeing growth of 0.4 per cent and new markets growth reaching seven per cent.

G4S said that it had reached an agreement with the British government over a number of contracts related to the Comprehensive Spending Review, announced in October. The group also confirmed that it had signed a Memorandum of Understanding with the government detailing savings to be made through amendments to existing contracts.

G4S added that it believed it would be able to grow its market share in the outsourced government sector as the government attempts to make savings from outsourcing to the private sector.

The group said it had a strong cash position and said in an outlook statement, "The business has continued to perform well despite continued challenging market conditions with positive organic growth and margins maintained.

"European markets are still proving to be challenging, especially in Eastern Europe, although the UK and US commercial markets have now stabilised. Our New Markets businesses, which now account for more than a third of group profits, continue to achieve strong results.

"These factors combined with our strategy to deliver integrated security solutions give us confidence that we will continue to show good progress for this year and into the next.

By 09:00 shares in G4S were up 1.32 per cent on the FTSE 100 to 261.50 pence per share.