G4S draws a line un­der pris­oner tag­ging scan­dal as prof­its beat City fore­casts

The Daily Telegraph - Business - - Business -

◆ G4S boss Ash­ley Al­manza said yes­ter­day he “ac­cepts com­pletely” the re­cent set­tle­ment with the Se­ri­ous Fraud Of­fice over the pris­oner tag­ging scan­dal as the se­cu­rity com­pany un­veiled bet­ter-than-ex­pected re­sults, writes Alan Tovey.

The de­ferred pros­e­cu­tion ar­range­ment with the SFO re­lated to a con­tract with the Min­istry of Jus­tice al­most a decade ago when it emerged G4S had over­charged tax­pay­ers to elec­tron­i­cally mon­i­tor of­fend­ers.

Mr Al­manza said it drew a line un­der the mat­ter. “We can com­pete for gov­ern­ment con­tracts. Al­though we need to do more, the Gov­ern­ment ac­knowl­edges our progress. We are chang­ing peo­ple and build­ing a cul­ture that re­spects proper process.”

In the six months to the end of June, G4S re­ported a 7.4pc drop in rev­enue to £3.5bn, and statu­tory pre-tax prof­its dou­bling to £217m.

How­ever, strip­ping out dis­pos­als, un­der­ly­ing prof­its were £187m, more than £20m above City ex­pec­ta­tions.

The profit rise came de­spite G4S pay­ing £50m to set­tle al­le­ga­tions around the tag­ging con­tract.

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