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 ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: G4S plc UK DK via Thomson Reuters ONE HUG#1677322
G4S plc UK DK : Statement re London 2012 Games Security Contract
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