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After a difficult and trying few years, G4S has finally reported that it is back in profit, thanks largely to a new deal to service the Guantanamo Bay prison; a deal that is said to be worth $118m and has helped to put to bed some of the scandal and poor performances of the past. The G4S slide began with the London 2012 Olympics, when it failed to meet its own deadlines and organisers were forced to call on the help of the Armed Forces to staff venues, and continued with the news that it and Serco were being investigated by the Serious Fraud Office following the news that they had overcharged for electronic tags.
This year, however, they have been allowed to bid on government contracts once again, and their performance in emerging markets, as well as major contracts like the Guantanamo Bay contract mean that they have been able to post an £85m profit for the six months to the end of June. This compares extremely favourably to the £94m loss they reported a year earlier.
London 2012 was meant to be a celebration of all things British, and G4S were the major winners when it came to security contracts. Among other provisions, they were tasked with providing the security staff for venues, in order to ensure that athletes and spectators were kept safe. However, they announced at the last minute that they had been unable to recruit the required staff and, as a result, they were several thousand employees short of their quota. The organisers had to call in the Armed Forces in an 11th hour bid to fill the gaps that were left.
Following this, G4S were caught up in a scandal that saw them grossly overcharging for electronic tagging. There were instances of the government being charged for electronic tags on people that were no longer within the tagging service, as well as inflated prices for those that did not require them. Serco were also caught up in this scandal, and G4S were prevented from bidding on government contracts.
However, in April of this year, and following the company’s agreement to repay £109m in overpayments, the government once again allowed the security company to bid on contracts. Subsequently, they were awarded a DWP contract to manage work placements for the long term unemployed. In revealing its first half financial figures, the company showed that they had won a total of £1.2bn worth of contracts throughout the first six months of the year.
One big contract that will surely help them to continue to rebuild is that of the $118m contract that they have been awarded to service Guantanamo Bay prison. The company are not afraid to take on questionable contracts, and questioned have been raised over their apparent support of the illegal imprisonment of Palestinian political prisoners, and there will be those that question the morals of managing a prison where half of the prisoners have previously been cleared as safe, but still remain within the terrorist holding facility.
This year, however, they have been allowed to bid on government contracts once again, and their performance in emerging markets, as well as major contracts like the Guantanamo Bay contract mean that they have been able to post an £85m profit for the six months to the end of June. This compares extremely favourably to the £94m loss they reported a year earlier.
London 2012 was meant to be a celebration of all things British, and G4S were the major winners when it came to security contracts. Among other provisions, they were tasked with providing the security staff for venues, in order to ensure that athletes and spectators were kept safe. However, they announced at the last minute that they had been unable to recruit the required staff and, as a result, they were several thousand employees short of their quota. The organisers had to call in the Armed Forces in an 11th hour bid to fill the gaps that were left.
Following this, G4S were caught up in a scandal that saw them grossly overcharging for electronic tagging. There were instances of the government being charged for electronic tags on people that were no longer within the tagging service, as well as inflated prices for those that did not require them. Serco were also caught up in this scandal, and G4S were prevented from bidding on government contracts.
However, in April of this year, and following the company’s agreement to repay £109m in overpayments, the government once again allowed the security company to bid on contracts. Subsequently, they were awarded a DWP contract to manage work placements for the long term unemployed. In revealing its first half financial figures, the company showed that they had won a total of £1.2bn worth of contracts throughout the first six months of the year.
One big contract that will surely help them to continue to rebuild is that of the $118m contract that they have been awarded to service Guantanamo Bay prison. The company are not afraid to take on questionable contracts, and questioned have been raised over their apparent support of the illegal imprisonment of Palestinian political prisoners, and there will be those that question the morals of managing a prison where half of the prisoners have previously been cleared as safe, but still remain within the terrorist holding facility.