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G4S Olympic losses increase to £70m | G4S Olympic losses increase to £70m |
(35 minutes later) | |
G4S, the firm that failed to provide enough security guards for the London 2012 Olympics, has struck a compensation deal with the Games' organising committee, Locog. | |
The firm will now incur losses on the Olympics contract of about £70m - up from a previous estimate of £50m. | |
G4S chief Nick Buckles said he was "pleased" to have concluded talks. | |
He added that "the overall cost to the taxpayer has been reduced significantly against the planned cost". | He added that "the overall cost to the taxpayer has been reduced significantly against the planned cost". |
The company said that the main difference between this deal and the previous one was an agreement to waive a larger proportion of the project management charge. | |
G4S came under severe criticism ahead of the Games, when it emerged that it had failed to recruit and train enough of the guards it had promised for the event. | |
The government was forced to turn to the military to provide extra staff. | |
G4S also said it had incurred extra costs of about £11m "relating to charitable donations and external fees" and £7m relating to sponsorship and marketing costs. | |
"Whilst we are extremely disappointed to find ourselves in this position, we are pleased to have concluded these negotiations with Locog," said Mr Buckles. | |
"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." |
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