G4S, the world's biggest security group, said it would increase provisions for under-performing UK government contracts by £45m as it posted a better than expected rise in 2014 profit.
The British firm is undergoing a restructuring after a run of major contract problems hit its profits and reputation.
It said today that its 2014 underlying operating profit rose 7.9% to £424m. This was ahead of a consensus forecast of £414m.
Cost savings helped deliver the rise, with group revenues also up 3.9% as strong growth in emerging markets and North America helped offset weaker trade in the UK and Europe.
The £45m provision made for legacy British government contracts comes after a £136m 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 of work in 2014 and that it had a sales pipeline worth £5.5 billion a year.
