G4S profits up despite Olympics blunder

SECURITY group G4S this morning posted a six per cent rise in annual profit, despite taking a £70m loss from the bungled Olympics contract.

The blue chip firm said this morning that operating profit – excluding the Olympic contract – came in at £516m over the full year, up from £487m in 2011, on underlying revenues 8.1 per cent higher at £7.3bn.

A strong performance from developing markets, which accounted for 33 per cent of group revenue last year, boosted profits. G4S is targeting 50 per cent of its revenues to come from emerging economies by 2019.

G4S was also flattered by new government contracts, as it started around £200m worth of work in 2012.

The firm is still reeling from the Olympics contract debacle, when it admitted just weeks before the London Games were due to begin that it could not provide the promised number of security personnel.

As a result, last month G4S said it would take a higher-than-expected £70m loss on the contract, which was taken as an exceptional charge in its 2012 accounts.