G4S loss on Olympics contract

Security company G4S today said it will incur a loss of £70 million on its bungled Olympics contract, more than the £50 million previously estimated.

Locog: Taxpayer's interests 'fully protected' in G4S settlement

Taxpayer's interests have been fully protected in compensating for the difficulties experienced by G4S' security shortcomings during the Olympics, according to Locog.

Its chief financial officer Neil Wood said the overall agreement reduced the payment due to G4S by £85 million, comprising £48 million to cover step-in costs by police and military and £37 million primarily for project management failures.

The savings arising from this settlement brings the total savings to the public purse from the Locog venue security budget to £102 million compared to the position in December 2011.

– Locog chief financial officer Neil Wood

Read: G4S' failure to fulfil its Olympics contract during the London 2012 Games.

G4S reach settlement with government over Olympics contract

G4S failed to provide all of its 10,400 contracted guards during the London 2012 Olympic Games, which meant the Government was forced to call in military personnel to provide extra security.

The two sides have since been in talks over a final settlement for the £240 million security contract.

British Army personnel patrol the Olympic Park in Stratford during the London 2012 Games.
British Army personnel patrol the Olympic Park in Stratford during the London 2012 Games. Credit: Owen Humphreys/PA Archive/Press Association Images

Two G4S directors resigned in the wake of an independent review into the company's botched London Olympics contract, when the group only fulfilled 83% of contracted shifts.

Chief operating officer David Taylor-Smith and Ian Horseman Sewell, who was head of global events, carried the can for the fiasco, but Mr Buckles stayed in his post.

Read: G4S' failure to fulfil its Olympics contract during the London 2012 Games.

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Olympics contract loss costs security firm G4S millions

G4S' £70 million loss over its London 2012 Olympic and Paralympic contracts follows months of negotiations with Games organisers Locog.

The security group also incurred additional costs of around £18 million relating to charitable donations, fees and the cost of sponsorship and marketing.

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.

– Chief executive Nick Buckles

Read: G4S' failure to fulfil its Olympics contract during the London 2012 Games.