SECURITY and utility services firm G4S has warned it still has much work to do, despite a turnaround plan leading to increased profits.

The company revealed pre-tax profits stood at £148m for 2014, compared to a loss of £190m a year earlier, with profits before interest, tax and amortisation (PBITA) up 3.9 per cent to £6.7bn.

The results come as the firm looks to rebuild its reputation following a failure to supply enough staff for a £284m London 2012 Olympic Games contract and a move last year to repay about £110m after overcharging the Ministry of Justice for electronic tagging services.

The firm employs nearly 450 staff in Newcastle, where it operates the head office of its utility services division, which carries out meter reading services.

According to its results, G4S said revenues in emerging markets were up nearly nine per cent to £2.3bn, but fell one per cent in the UK and Europe.

Bosses said new contract sales were worth £2.1bn, adding they have increased provisions for under-performing UK Government contracts by £45m.

Ashley Almanza, chief executive, said while he was pleased with its progress, there was more to be done.

He said: “We made good progress with our strategic plan, delivering commercial, operational and financial progress during 2014.

“This is reflected in a 7.9 per cent increase in underlying PBITA, an 11.7 per cent rise in underlying earnings, and a 25 per cent lift in cash flow from the group’s operating businesses.

“But there remains much to be done to realise the full potential of our strategy and we expect to make further progress in 2015.”

G4S was previously criticised for not sending enough security staff for the London Olympic Games, which forced organisers to call in military personnel to plug gaps.

The firm was formed from a merger between Securicor and Group 4’s security business, and employs nearly 620,000 staff.

It is one of the largest employers on the London Stock Exchange.