G4S upbeat despite failed takeover bid cost

The failed bid by security firm G4S to create the world’s second-biggest employer left it nursing a £55 million hit to profits today.

The group, which abandoned the £5.2 billion swoop for Denmark’s ISS in November following shareholder pressure, reported pre-tax profits fell 17 per cent to £279m in 2011, including the cost of the bid.

But the company – which provides security for Murrayfield stadium in Edinburgh, the Old Course in St Andrews and Rangers’ Ibrox stadium in Glasgow – expects to grow revenues in 2012 as it has a major contract to provide security at the Olympic Games and has been boosted by some ground-breaking deals as austerity-driven authorities look to outsource more work.

During the year it started running Birmingham prison and is due to run Oakwood prison in Wolverhampton from April, while a contract to design and run a station for Lincolnshire Police will start in May.

The £20m police contract, which includes running cells, administering drug tests and managing the force’s vehicle fleet, is the first of its kind.

G4S also supplies security and stewarding for music events, such as the T in the Park concert.