G4S plc UK DK : Statement re London 2012 Games Security Contract
12 February 2013
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
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."
Helen Parris +44 (0) 1293 554400
Director of Investor Relations
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
*During the peak period of the Games, G4S supplied around 8,000 staff on a
*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
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
This announcement is distributed by Thomson Reuters on behalf of Thomson
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information contained therein.
Source: G4S plc UK DK via Thomson Reuters ONE
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