G4S loss on Olympics contract

Taxpayer's interests have been fully protected in compensating for the difficulties experienced by G4S' security shortcomings during the Olympics, according to Locog.

Its chief financial officer Neil Wood said the overall agreement reduced the payment due to G4S by £85 million, comprising £48 million to cover step-in costs by police and military and £37 million primarily for project management failures.

Read: G4S' failure to fulfil its Olympics contract during the London 2012 Games.

G4S failed to provide all of its 10,400 contracted guards during the London 2012 Olympic Games, which meant the Government was forced to call in military personnel to provide extra security.

The two sides have since been in talks over a final settlement for the £240 million security contract.

Two G4S directors resigned in the wake of an independent review into the company's botched London Olympics contract, when the group only fulfilled 83% of contracted shifts.

Chief operating officer David Taylor-Smith and Ian Horseman Sewell, who was head of global events, carried the can for the fiasco, but Mr Buckles stayed in his post.

Read: G4S' failure to fulfil its Olympics contract during the London 2012 Games.

G4S' £70 million loss over its London 2012 Olympic and Paralympic contracts follows months of negotiations with Games organisers Locog.

The security group also incurred additional costs of around £18 million relating to charitable donations, fees and the cost of sponsorship and marketing.

Read: G4S' failure to fulfil its Olympics contract during the London 2012 Games.

Security company G4S today said it will incur a loss of £70 million on its bungled Olympics contract, more than the £50 million previously estimated.

Read: G4S' failure to fulfil its Olympics contract during the London 2012 Games.