G4S is expected to take a bigger hit over the Olympics security fiasco than the £50 million it originally estimated.
The FTSE100 company, which is in the final stages of negotiations with Games organisers Locog, will reportedly incur a total loss of between £50 million and £100m. The two sides have been in talks over a final settlement for the £240m security contract, after G4S failed to provide all of its 10,400 contracted guards. The shortfall left the government with no choice but to step in with military personnel.
Two G4S directors resigned in the wake of an independent review into the group’s botched London Olympics contract, when it only fulfilled 83 per cent of contracted shifts.