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