G4S to cut jobs but says it will cooperate with fraud squad
G4S has reported a 6.4 per cent growth in revenues over the nine months to 30 September – excluding the Olympics contract that went pear-shaped. It also said it will cooperate in a Serious Fraud Office (SFO) investigation. Shares have opened down on the news. (Release)
The security company's chief executive has subsequently said this morning that 250-400 jobs in its UK cash business will be cut over the next 18 months.
G4S, which is under a SFO investigation as of yesterday, in relation to electronic prisoner-monitoring contracts, saw organic growth of 4.8 per cent. Emerging markets look promising, with 14 per cent growth in the period but developed markets were broadly flat. This, it said, was down to challenging market conditions and lower US federal government spending.
The firm says it will "fully cooperate" with the SFO probe and will continue to "provide support to the Ministry of Justice on its audit of the electronic monitoring contract". The statement adds that the company "looks forward to working with the customer to address any differences of this contract".
