G4S’s financial burdens under the Compass deal could increase over the next year as Home Office estimates suggest a 15% rise in asylum seekers this year.
Almanza said there was “only one thing to do, and that is honour the contract” but added that he was “utterly confident” that the deal would never have been signed under new controls.
“Certainly any major contract like this would have to have escalated up to the group and subject to proper review and challenge,” he said.
G4S’s contractor in Middlesbrough has also repainted the red doors of asylum seekers’ houses “in a variety of colours” after complaints occupants were being stigmatised.
The City took a dim view of the results as G4S’s bottom-line profits tumbled from £145 million to just £8 million, following further hits on a Private Finance Initiative contract, restructuring costs, goodwill, and losses on businesses to be sold.
Revenues of £6.4 billion were lower than expected while net debts of £1.78 billion also spooked traders.
The shares tumbled 22.2p to 190.5p, or 10%, wiping around £300 million off the market value of the company.
Almanza is looking to raise up to £350 million by selling off businesses like the UK utilities arm and its Israeli operations, with up to 61 businesses on the block, as well as clearing up the legacy contracts.
