G4S returns to profit as revenue from emerging markets surges
CONTROVERSIAL security firm G4S has returned to profit after seeing its emerging market revenues surge, it emerged yesterday.
The firm’s domestic market suffered in recent years due to fallout from the Olympic Games and government fines relating to electronic tagging. Last April, G4S had to refund the government £109m after an audit found it charged too much for providing electronic prisoner tags.
The company had since embarked on a significant restructuring programme with a focus on improving efficiency and its reputation.
The turnaround has started to pay off, with an eight per cent increase in pre-tax profits on the year to £122m despite a one per cent fall in revenue.
However, the main driver of revenue growth was the company’s emerging market operations, where revenues recorded a nine per cent increase, which translated into a 10 per cent rise in profits to £192m
Overall, group revenues rose four per cent to £6.8bn for the year ending 31 December 2014 on an underlying basis with pre-tax profits up eight per cent over the period to £424m.
Ashley Almanza, Group Chief Executive Officer, commented: “The group made good progress with its strategic plan, delivering commercial, operational and financial progress during 2014.”