G4S still tied up by tagging scandal

The struggling security firm hasn't resolved its bust-up with the government and has taken a £136m hit for overcharging for tagging criminals.

by Rachel Savage
Last Updated: 13 Aug 2014

G4S just can’t seem to shake its scandals. After screwing up security for the London Olympics in 2012, the outsourcer, along with embattled rival Serco, was outed last year for overcharging the government for tagging criminals who were actually dead or in jail. Today it announced the whole debacle was still costing it hundreds of millions of pounds.

The security company reported a pre-tax loss of £170m for 2013, compared to a £158m profit in 2012, after taking a one-off hit of £386m. That included a £136m provision for the tagging contract and £182m of assets and liabilities writedowns.

Chief exec Ashley Almanza, who took over after the much-maligned, mulletted Nick Buckle was shown the door last May, said G4S has taken ‘clear action to address long-standing issues’ after ‘an extremely challenging year’ (you don’t say...).

The company also said it is still engaging in ‘constructive discussions’ with the government to resolve the electronic tagging furore, but that didn’t stop shares falling almost over 6.5% in mid-morning trading.

With the Serious Fraud Office investigation into G4S and Serco over the tagging overcharging ongoing, Almanza still has one helluva task to secure the company’s reputation and bottom line.

Find this article useful?

Get more great articles like this in your inbox every lunchtime