G4S is expected to announce losses on its contract for housing asylum seekers in the UK this Wednesday.

This is not the first time that the contract with the Home Office has proven financially unviable for the world’s largest security firm. Last year, G4S recorded losses of nearly £25m related to the deal.

This year, however, the increased inflow of asylum seekers and the company’s difficulties in finding appropriate housing are expected to cost G4S a larger sum than in 2015.

The loss is another blow to the security giant, which in the last three years has been involved in a significant number of high-profile incidents, inevitably denting its reputation. Just last month only, G4S closed off its youth justice centres arm in the UK, after a video emerged of children within the centres being abused by staff.

At the moment, Serco, G4S and Clearel are the providers of asylum housing facilities. Between themselves, the three firms won the six contracts put out by the Home Office in 2012. G4S is not the only company suffering losses from the asylum seekers contract. Serco, which has a smaller cut of the contract (33 per cent), has already written off £115m of the contract’s value until its end in 2019.

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