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G4S returns to black as security company recovers from tagging scandal
G4S has returned to profit for the six months to June 30, with growth in Africa and South America offsetting declining revenues in the UK.
The security giant has posted pre-tax profits of £85m for its first half, reversing the £94m loss it recorded last year. Operating profit rose 6.5 per cent on the same period last year to £185m.
UK revenues dropped 2 per cent from £806m to £790m, however group revenue increased 4.1 per cent to £3.4bn.
The strong results will give G4S a fillip following the exit of high-profile investor Bill Gates, who started winding down his stake in May after a series of high profile failures.
In March this year it was forced to repay £108.9m to the government after it emerged the company had been overcharging the taxpayer by using security tagging on prisoners who were either dead or in jail. G4S had previously been criticitised for failing to provide enough security guards for the 2012 Olympics.
In April G4S was permitted to start bidding on UK government contracts again after it had been blocked last year, securing a £4m contract to provide management services to HM Revenue & Customs worth £4m later that month.
Responding to the half-year results, chief executive Ashley Almanza said:
The group made good progress and delivered a satisfactory financial performance in the first six months winning new contracts with a total value of £1.2bn.There remains much to be done to capture the full potential of our strategy and to strengthen the group's performance.
In a statement G4S added:
The priorities now are to deliver outstanding service on existing contracts and to grow the business by competing for new Government (UK) services in areas where the region has proven expertise and capability.