G4S upbeat despite failed bid cost

THE failed bid by prisons-to-security firm G4S to create the world’s second biggest employer left it nursing a £55m hit to profits today.

By The Newsroom

Published 13th Mar 2012, 09:43 BST

The group, which abandoned the £5.2bn swoop for Denmark’s ISS in November following shareholder pressure, reported pre-tax profits fell 17 per cent to £279m in 2011, including the cost of the bid.

But the group expects to grow revenues in 2012 as it has a major contract to provide security at the Olympic Games and has been boosted by some ground-breaking deals as austerity-driven authorities look to outsource more work.

During the year it started running Birmingham prison and is due to run Oakwood prison in Wolverhampton from April, while a contract to design and run a station for Lincolnshire Police will start in May.

The £20m contract, which includes running cells, administering drug tests and managing the force’s vehicle fleet, is the first of its kind.