Partner Article

G4S incur £70m Olympic loss

Security firm G4S, the company that failed to fulfill its contract for the London Olympics, has increased its loss from the Games to £70m.

In an update released on the London Stock Exchange, the business said it agreed the overall loss with the London Organising Committee of the Olympic Games and Paralympic Games (LOGOC).

Further to the £70m bill, the group has incurred costs of around £11m that relate to charitable donations and external fees, while an additional £7m sponsorship and marketing fee will also be paid.

G4S said these charges will be taken in its 2012 accounts as an exceptional charge, after £50m was already accounted for in its half year results.

The company said the difference between Tuesday’s total and previous estimates was an agreement to waive a large proportion of the project management charge.

Nick Buckles, chief executive, commented: “Whilst we are extremely disappointed to find ourselves in this position, we are pleased to have concluded these negotiations with LOCOG.

“We have accepted responsibility for the security workforce issues and, as a result of the settlement terms which we have announced today, have ensured that the overall cost to the taxpayer has been reduced significantly against the planned cost.

“The UK Government is an important customer for the group and we felt that it was in all of our interests to bring this matter to a close in an equitable and professional manner without the need for lengthy legal proceedings.

Mr Buckles added: “The Olympic and Paralympic Games were a great success for the UK and we would like to reiterate our thanks to the military and the police for their support.

“We would also like to thank the 16,000 men and women of G4S who played their part in securing the Games despite the challenges faced by the group.”

G4s is the largest London Stock Exchange-quoted employer, with over 657,000 employees in over 125 countries worldwide.

This was posted in Bdaily's Members' News section by Miranda Dobson .