Security company G4S has said its loss on the London Olympic security contract would stretch to £70m, after finally agreeing a settlement with Games organisers.
The world’s biggest security firm’s reputation was badly tarnished when it admitted just weeks before last year’s Olympics it could not provide 10,400 guards for the Games, forcing British troops to fill in and embarrassing government, a key client.
G4S, which was subsequently hauled before British lawmakers to explain the debacle and later let two executives go after an internal report, had estimated the loss on the contract worth around £240m to be around £50m.
The group said it had also incurred additional costs of approximately £11m, relating to charitable donations and external fees and a further £7m relating to the cost of sponsorship and marketing.
All of these costs will be taken in the 2012 accounts as an exceptional charge.
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