G4S Plc (GFS), the company awarded the contract to protect London’s Olympic Games, said the “biggest chunk” of its expected losses after failing to provide enough staff will be penalty payments to the U.K. government.
In a statement late yesterday, the company said it expects to lose up to 50 million pounds ($77.9 million) on its contract after the government said it will deploy 3,500 extra soldiers to provide security to meet the G4S staffing shortfall.
G4S underestimated the task of supplying staff for the Olympics, Chief Executive Officer Nick Buckles said today in an interview with Sky News.
He said most of the expected losses would comprise penalties to the government and others expenses, including military costs.
“We expect to get paid for the part of the contract fulfilled,” Buckles told Sky. He said G4S had “failed to deliver” on the task it was given and apologised.