London - G4S, the world's biggest security group, said it would increase provisions for under-performing UK government contracts by 45 million pounds as it posted a better than expected rise in 2014 profit.
The British firm, undergoing a restructuring after a run of major contract problems hit its profits and reputation, said on Tuesday 2014 underlying operating profit rose 7.9 percent to 424 million pounds, ahead of a consensus forecast of 414 million.
Cost savings helped deliver the rise, with group revenues also up 3.9 percent as strong growth in emerging markets and North America helped offset weaker trade in the UK and Europe.
The 45 million pound provision made for legacy British government contracts comes after a 136 million pound provision taken in 2013. British rival Serco was forced to make a similar move on such contracts in November.
G4S said it won 2.1 billion pounds of work in 2014 and that it had a sales pipeline worth 5.5 billion pounds a year.
Reuters