Olympic security G4S made a huge loss over their failure

The security firm has revealed a £50m loss from London 2012 Olympics following its error ...

16:23 28 August 2012

The security firm has revealed a £50m loss from London 2012 Olympics following its error of not providing enough security.

 

The company failed to recruit enough numbers for the Games, with the armed forces being called in to help handle security for the event.

 

Their contract had a value of around £284m, with the firm meaning to supply 10,400 security guards, but they were unable to train the required numbers in preparation for the Olympics.

 

In a statement from G4S, they said they had 8,000 staff to cover the event and it is understood they will review their contract with PricewaterhouseCoopers.

 

With the Paralympic Games starting on Wednesday, the firm have claimed there will be no comparable problems.

 

G4S Chief executive Nick Buckles has previously apologised for the crisis, and in a statement the company admitted they were “deeply disappointed” with their problems.

 

They have also paid thanks to the military and the police for their help concerning the security at the Olympics.

 

G4S admitted they had a shortage in staff numbers a few weeks before the opening ceremony of the Olympics.

 

It is understood they will reimburse the Government for the extra staff provided by the army.

 

The BBC quote Simon Lord, the managing director at the investment bank Altium, on his views on the company’s future performance.

 

"There is no doubt that the reputational risk of what's gone on at the Olympics far outweighs the direct financial impact of the contract,” he said.

 

"In the five days post the announcement, about £700m was wiped off the value of the shares for the incident, which cost £50m. A number of UK government contracts are up for tender in the second half of this year and stakeholders will be watching these very closely."

 

The G4S half-year report revealed the company has cut 1,100 jobs so far this year.

 

It is thought that G4S has staff based around 125 countries across the world.