G4S Profit Rises Following Tagging Scandal

The world's biggest security group, G4S (LSE: GFS.L - news) , has seen its underlying profit before tax rise by 11% to £124m.

The British company's half-year results were better than expected, benefiting from strong demand in emerging markets.

Its revenue increased by 4% to £3.4bn, as the company won new contracts worth £1.2bn in the six months to the end of June.

It comes after a tough period for the security firm, which has recently been embroiled in a scandal over the tagging of criminals.

Last year G4S was accused of charging the Ministry of Justice for monitoring offenders who were either dead, back in prison, had their tags removed or had never been tagged.

As a result it was banned from making bids for new Government contracts, a ban which came to an end in April after it agreed to pay £109m to settle the affair.

The company, along with rival Serco, remains under investigation by Britain's Serious Fraud Office.

But G4S, also known for the botched handling of its Olympics security contract, says it is continuing to rebuild its reputation.

Group chief executive Ashley Almanza said: "There remains much to be done to capture the full potential of our strategy and to strengthen the group's performance."

Mr Almanza has been in charge at G4S for just over a year and set about improving management and company finances.

The group said it had sold six businesses in the past year and closed 15 of its smaller, loss-making companies as part of an ongoing review.

Shares (Frankfurt: DI6.F - news) in G4S rose by more than 1% after the markets opened on Wednesday.