G4S beats outsourcers drag with a 30% leap in profits

G4S, the security and outsourcing giant, has dodged the problems that have hit rival outsourcers and posted a leap in profits.

Revenues climbed by 3% at the world’s fourth-largest private-sector employer, with profits up by 30% to £386 million.

The spokeswoman said revenues at its care and justice business, which runs prisons in the UK and Australia, were flat because the company was “being really selective about bidding”.

Carillion, which had scores of government contracts, went bust in January while outsourcer Interserve is also struggling.

G4S had an early indicator of the problems to come with Government contracts on thin margins when it won part of a Home Office contract to support asylum seekers in 2013. The contract quickly proved to be unprofitable, leading to a profit warning.

Ashley Almanza, chief executive, has refocused the business to focus on cash handling and security and technology is playing a much bigger role, although G4S will continue to be a massive employer with 585,000 staff in 90 countries.