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SBD Global/August 29, 2012/Finance

G4S CEO 'Deeply Disappointed' By Olympics Security Fiasco That Cost Company $79M

Security firm G4S CEO Nick Buckles said he is "deeply disappointed" by his company's Olympic security failure, as he revealed a £50M ($79M) hit from the fiasco forced profits down 60%, according to Andrew Trotman of the London TELEGRAPH. The group, which failed to recruit enough staff to cover the Games, admitted that the financial impact related to the contract "could worsen when fines and the cost of military cover are finalised." Buckles said, "We were deeply disappointed that we had significant issues with the London 2012 Olympics contract and are very grateful to the military and the police for their support in helping us to deliver a safe and secure Games." In its half-year report, G4S also revealed that it has cut 1,100 jobs so far this year "in a bid to protect growing margins" (TELEGRAPH, 8/28). The PA's Holly Williams reported that G4S is "conducting an internal review" after it failed to provide the 10,400 contracted guards for the London Games, which forced the government "to step in with military personnel." G4S said that it had delivered 83% of contracted shifts and that "it was confident the Paralympic Games would be fully staffed with a security workforce." Its half-year results revealed "a significant drop" in pre-tax profits to £61M ($97M) from £151M ($239) a year earlier. However, profits "held flat on an underlying basis" after sales increased 5.8% to £3.9B ($6.2B) (PA, 8/28).
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