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G4S PLC shares slide as troubled contracts still haunt

Published: 13:11 09 Mar 2016 GMT

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An asylum seeker housing contract is proving costly

Security group G4S’s (LON:GFS) share price tumbled again as profits slid 40% on another raft of one-off charges and write-downs on troubled contracts

The accident prone security and services group posted pre-tax profits of £78mln, down from £128mln, with revenues slightly lower at £6.86bn.

Costs for businesses up for sale, restructuring, onerous contract provisions and impairment rose to £215mln.

G4S, which has struggled to recover from the 2012 Olympic security fiasco and overcharging the UK government for tagging criminals, highlighted a contract for asylum seekers as being especially difficult.

A sharp rise in the number of people entering the country has seen the provision for losses here rise by £20mln to £31mln, with a further £57mln on top possible if the contract is extended.

Debt also rose over the year to just shy of £1.8bn, though the dividend for the year rose 1.8% to 9.41p.

“Against a background of global economic uncertainty, demand for our services has remained resilient and growth accelerated in the second half of 2015, providing good support for further operating and financial progress in 2016, said Ashley Almanza, chief executive

Shares fell 14% to 182p.

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