London Report: G4S tagging woes drag FTSE down to a one-month low

THE UK’S top share index fell to a one-month low yesterday, led down by G4S after the security firm agreed a settlement with the government over an offenders’ tagging scandal.

G4S sank 5.3 per cent in brisk trade after agreeing to repay £108.9m to the British government after overcharging it on a contract to tag criminals.

The repayment, much higher than the £24m G4S offered in November, came as G4S posted annual profits below market forecasts and outlined a raft of heavy charges, with analysts saying they expected 2014 profit forecasts to be cut.

The UK benchmark, which had fallen in the last three sessions, ended down 64.62 points, or one per cent, at 6,620.90 points, its lowest close since February 1

Falls in the value of stocks trading without the attraction of their latest dividend, including major banks HSBC and Standard Chartered, which also took their toll on the FTSE 100, knocking some 20 points off the index.