Friday 7th March, 2014
The outsourcing giant, Serco has announced that profits last year fell by a whopping 62% after it was hit by costs in relation to the criminal tagging scandal.
Pre-tax profit fell from £281.1m in 2012, to £106.6m last year - with acting boss, Ed Casey admitting to a "difficult year."
"The events of 2013 absorbed management's focus and, therefore, interrupted the normal process of improving efficiency and developing our business into new areas," he added.
Rupert Soames, the current CEO of Aggreko, is to take over as Serco chief executive in June.
The company has said that the freeze on it being able to bid for lucrative UK government contracts until the end of January has hit the development of its business in certain sectors.
Investigations by the Serious Fraud Office (SFO) into allegations that it overcharged for tagging offenders are ongoing.
The company has said the outlook for this year remains "challenging", with a greater volume of contract losses than expected, as well as lower-than-expected growth from new contracts awarded.