G4S still at impasse with Government over tagging scandal

Posted by Unknown on Wednesday, March 12, 2014


The group, which is trying to restore its reputation after a series of scandals under former chief executive Nick Buckles, said it was "in constructive discussions" with the Government over lifting a ban on public contracts.




G4S has suffered a tumultuous 18 months, starting with its failure to provide adequate security at the London Olympic Games in 2012. It then failed with a takeover of Danish cleaning firm ISS and a profit warning last May, which proved to be the downfall of Mr Buckles.




Mr Almanza has attempted to restore the company's reputation, but the accusations that it, along with fellow outsourcer Serco, had overcharged for criminal tagging, dealt G4S a fresh blow.




The group took £386m of impairment charges in its annual results, mostly made up of £136m related to the tagging scandal and £182m in assets and liabilities writedowns.


This saw it fall to a £42m pre-tax loss in 2013, against a £278m profit in the previous year. Revenues inched up from £7.2bn to £7.4bn.


"This has been an extremely challenging year for G4S," Mr Almanza said. "We have taken clear action to address longstanding issues and have introduced wide ranging changes to strengthen our business.


"We can now look to the future with increasing confidence, focusing on the growing demand for G4S services that underpins our plans to deliver sustainable, profitable growth."





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