G4S profits soar on foreign expansion

G4S profits rose in 2014 but so did provisions for under-performing UK contracts Reuters

Security firm G4S reported a pre-tax profit of £148m ($223m, €207m) for 2014 as its revenues from emerging markets soared.

The company reported a fall in revenues from the UK and Ireland, but that drop was compensated by a 7.7% boost to its emerging market revenues and better cost savings.

The profit increase was accompanied by a £45m increase in provisions for underperforming UK government contracts. It previously made a £136m provision for contracts in 2013.

The company had posted a £190m loss the previous year, after it lost a number of contracts in its domestic market.

G4S is undergoing a significant restructure and it agreed to pay £109m in April last year after it was found to have overcharged for providing electronic prisoner tags.

"There remains much to be done to realise the full potential of our strategy and we expect to make further progress in 2015," G4S said in a statement.