G4S admits hit to reputation from SFO probe The chief executive of G4S has acknowledged the damage to its reputation after the Serious Fraud Office launched a criminal investigation into the outsourcing group. On Monday, the SFO launched a criminal investigation into the company and its UK rival Serco amid allegations they overcharged the government on electronic tagging contracts. IN Support Services "We have to be realistic, there has been damage to our reputation," Ashley Almanza said on Tuesday. The development was the latest in a string of woes for the FTSE 100 group. The company last week faced allegations, which it denies, of misconduct by staff at a G4S-run prison in South Africa. Mr Almanza, who took over from Nick Buckles, former chief executive, in June, is to present the company's future strategy at a capital markets day later on Tuesday. He said the company had put 35 underperforming businesses, worth more than £400m in annual revenues, under review "to determine whether we can grow them, restructure them or . . . if the market value supports a disposal, we'll consider that as well." The company is also restructuring its cash solutions business in the UK, which it said would lead to the loss of 250-400 jobs over 18 months. G4S is targeting annual organic growth of 5-8 per cent while seeking to shore up its balance sheet. The company carried out a £350m share placing in the summer and has since sold a data storage business in Colombia and its Canadian cash business. The 35 underperforming businesses include the company's Norwegian arm, which it sold at the end of last month. The wider cash solutions arm was last month the subject of a £1.6bn bid from Charterhouse, the private equity group, which the company rejected saying it undervalued the business. G4S said it considers the arm to be core to its operations. In an overview of its performance in the first nine months of the year, G4S said that while revenues had grown 6.4 per cent compared with the same period of last year, profit before interest, tax and amortisation was in line with 2012. G4S is targeting annual organic growth of 5-8 per cent while seeking to shore up its balance sheet The company said trading had been flat in developed markets, including the US, where it had been affected by government budget cuts. That contrasted with 14 per cent growth in emerging markets. Developing economies now account for more than 40 per cent of group profits. G4S said trading was expected to remain "challenging" in Europe and the US in the fourth quarter. The debacle over prison transfer contracts has already prompted the departures of Richard Morris, head of UK and Irish operations for G4S, and Chris Hyman, chief executive of Serco. The two companies have said they will co-operate fully with the SFO investigation and have already agreed to reimburse any overcharging identified. The shares were down 1.7 per cent at 250p in early London trading on Tuesday.