The firm has decided to offer 140.9 million new shares – an estimated 9.99% of its current share capital – to its current shareholders and new institutional investors.
It also announced the sale of £250m worth of assets, including Canadian cash security and Columbia Data solutions businesses for an expected £100m.
In his first update since taking the helm, Almanza announced first half operating profits of £201m, down marginally from £202m a year earlier. Turnover grew 7.2% to £3.65bn but operating margins dropped to 5.5% from 5.9% a year ago.
‘In the near term, 2013 will be a year of consolidation for the group with the actions we are now taking starting to deliver tangible benefits during 2014,’ Almanza said.
Almanza certainly has a sizable reputational rescue on his hands. Following the debacle during the Olympic Games (its failure to provide enough security guards cost the firm some £70m), an audit in July of this year found the company had overcharged for the electronic tagging of criminals in England and Wales.
The markets have reacted positively to Almanza’s restructuring and share sale plans, following an initial drop, they are now trading up 2.98%.