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G4S misses profit forecasts, tagging talks drag on

Chris Ratcliffe | Bloomberg | Getty Images

The world's biggest security firm G4S said it had yet to reach a settlement with the British government over its tagging contract, as it posted annual profit below market forecasts.

The British group on Wednesday said 2013 underlying operating profit was £442 million ($735 million), below analyst forecasts of £455 million, due to the impact of lower revenue in Europe and the U.S.

The annual profit represented a 2.8 percent rise on 2012 after 2012 numbers were re-stated and cut from £470 million pounds to £430 million due to a review of assets and liabilities.

After a disastrous 2012, in which it failed to provide enough guards for the London Olympics, G4S has overhauled its management and embarked on a restructuring to revive its fortunes.

However, 2013 entailed more scandal with the firm banned from winning new UK government work after it was found to have overcharged on a contract to electronically tag offenders.

Talks between the government and G4S to agree a repayment fee have dragged on for months. The firm said on Wednesday they continued to engage with ministers.

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