Mar 8, 2017

G4S shrugs off scandals to post rise in profits

G4S said it was benefiting from a heightened global demand for security as it posted a jump in profits and revenues, driven by its US division. The world's biggest security company, which provides technology to the Pentagon as well as guards for sports events and offices, posted a 14 per cent rise in pre-tax profits to £352m last year on revenues up 6.3 per cent to £6.8bn. The US, where it has been pioneering new technology-driven security services, led the increase, with revenues up 12.4 per cent on the year to £1.8bn, eclipsing all other markets. The company's share price rose 9.2 per cent to a near two-year high of 292.1p as it put a series of scandals behind it at a time when UK-focused outsourcing rivals such as Capita and Mitie are struggling with a slowdown in contracts awarded. Sales growth in the UK, where G4S is under investigation from the Serious Fraud Office for overcharging the government for the electronic tagging of offenders, rose 1.5 per cent. The group's technology, software and systems development division, which includes its business providing electronic monitoring tags for offenders, grew 36 per cent in the year and accounts for 13 per cent of group revenues.

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