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UK – Olympic fiasco costs G4S £50 million

28 August 2012

The UK outsourcing security specialist G4S which was at the centre of the high-profile staffing crisis for the London Olympic Games said today that it will cut 1,100 staff. The company came to prominence for providing contracted security personnel for the Games which had cost the firm £50 million, an interim report revealed today.

This comes after G4S came under fire from the Government over its failure to deliver enough trained temporary staff for the London Olympic and Paralympic Games as the official supplier of security and cash services for the Games.

The firm’s CEO Nick Buckles apologised over the fiasco which attracted international media attention and sparked security fears. The firm had been contracted to supply 10,400 security guards across over 100 Olympic venues and told the Government a few weeks before the opening ceremony that it was unable to provide all the contacted staff.

The firm now said that the debacle will not be repeated for the Paralympic Games which open on Wednesday this week.

The group posted a profit before interest, tax and amortisation (PBITA) for the six months to June of £236 million, flat when compared to last year, while revenue was up +5.8% to £3.9 billion.

The Group also reported more difficult trading conditions in Europe. However, it said it had a “solid pipeline” of outsourcing contracts for 2013.

In early trading this morning, the company’s share price was down by -2.3% to 260.10 pence, down -0.04% from a year ago and -11.4% below its 52-week high of 293.40 pence seen in March. The company has a market value of £3.77 billion. 

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