G4S Olympic losses increase to £70m

Soldiers at the Olympic Park on About 3,500 extra troops had to be deployed during the Games

Related Stories

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".

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."

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

From BBC Capital

Programmes

  • A prosthetic legClick Watch

    How motion capture technology is being used to design bespoke prosthetics

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.