G4S to pay government £109m over tagging contracts
G4S has agreed to reimburse the government £109m plus value-added tax for overcharging on the company's contract to electronically tag prisoners, according to the Ministry of Justice (MoJ).
The figure is significantly higher in cash terms than the £24m that G4S offered in November.
The MoJ said it would consider asking for larger amount if criminal charges are brought against the contractor.
G4S's share price has taken beating, falling by 6.8 per cent so far, in wake of the company reporting a loss before tax of 15 per cent or £170m for the year ended 31 December 2013. This compares to a profit of £158m in 2012.
Revenue grew 2.7 per cent to £7.4bn, with strong revenue growth in emerging markets of 16 per cent.
G4S chief executive officer Ashley Almanza commented:
This has been an extremely challenging year for G4S. We have taken clear action to address longstanding issues and have introduced wide ranging changes to strengthen our business.
We can now look to the future with increasing confidence, focusing on the growing demand for G4S services that underpins our plans to deliver sustainable, profitable growth.
(Google)