G4S plc UK DK : Statement re London 2012 Games Security Contract

       G4S plc UK DK : Statement re London 2012 Games Security Contract

12 February 2013

                                   G4S PLC

           STATEMENT REGARDING LONDON 2012 GAMES SECURITY CONTRACT

G4S, the international secure outsourcing  group, today announces that it  has 
agreed a  financial settlement  with the  London Organising  Committee of  the 
Olympic Games and Paralympic  Games ("LOCOG") in respect  of the provision  of 
the security workforce for  the London 2012 Olympic  & Paralympic Games  ("the 
Games").

The terms of the settlement  mean that G4S will incur  an overall loss on  the 
contract of approximately £70 million. The group has also incurred additional
costs of  approximately  £11 million,  relating  to charitable  donations  and 
external fees and a further £7 million relating to the cost of sponsorship and
marketing. All  of these  costs will  be taken  in the  2012 accounts  as  an 
exceptional charge (£50  million having  been provided  for at  the half  year 
based on the previous  contract loss estimate).  The main difference  between 
the previous estimate  and the  final settlement is  an agreement  to waive  a 
larger proportion of the project management charge.

Commenting on the settlement, Nick Buckles, CEO of G4S said:

"The Olympic and Paralympic Games were a great success for the UK and we would
like to reiterate our thanks to the military and the police for their support.
We would also like to thank the 16,000 men and women of G4S who played  their 
part in securing the Games despite the challenges faced by the group.

Whilst we are extremely  disappointed to find ourselves  in this position,  we 
are pleased to have concluded these negotiations with LOCOG. 

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.

The UK Government is an important customer  for the group and we felt that  it 
was in all of our  interests to bring this matter  to a close in an  equitable 
and professional manner without the need for lengthy legal proceedings."

Contact details:

Helen Parris                    +44 (0) 1293 554400
Director of Investor Relations

Media enquiries:   

Adam Mynott                    +44 (0) 1293 554400 
Director of Media Relations

Notes to editors:

About G4S at the Games

  *G4S recruited  approximately 16,000  security  workforce members  for  the 
    Games

  *During the peak period of the Games, G4S supplied around 8,000 staff on  a 
    single day

  *G4S supplied over 80% of the manned security service it had contracted  to 
    supply over  the  course  of  the  pre-Games,  Games-time  and  post-Games 
    periods.

About G4S

G4S  is  the  world's  leading  secure  outsourcing  group,  specialising   in 
outsourcing of business processes in  sectors where security and safety  risks 
are considered a strategic threat.

G4S is the  largest employer quoted  on the  London Stock Exchange  and has  a 
secondary stock exchange  listing in  Copenhagen. G4S has  operations in  more 
than 125 countries and over 657,000 employees.

For more information on G4S, visit www.g4s.com

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Source: G4S plc UK DK via Thomson Reuters ONE
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