Update on Olympic Games Security Contract19 July 2012
G4S continues to focus huge resource and effort on increasing the number of G4S personnel engaged in the Olympic security programme
We are making good progress, with daily increases in the number of people working at Olympic venues as well as in the number of people who have completed the necessary training and related accreditation processes.
G4S notes today's announcement that Ministers have agreed that there is no current need to deploy any additional troops but, recognising that safety and security are always the highest priority, a further 1,200 troops have been put on standby. We recognise that this is a sensible precaution. We are working very closely with LOCOG, the military, police and Government and we expect to continue to build on the progress we have made in the past few days.
G4S has undertaken to cover the additional costs relating to the military and police who make good any shortfall in G4S personnel. The Company has reviewed the latest position and believes that, even if some or all of the additional troops now on standby were to be deployed, the overall losses to be incurred on this contract would remain within the previously stated estimate of £35m - £50m.
The Company also wishes to clarify the nature of the £57m 'management fee' referred to at the Home Affairs Select Committee on Tuesday 17 July. This constitutes payments in respect of the operating cost elements of the contract relating to the infrastructure needed to support the contract over the last two years. During that time G4S has incurred significant costs on behalf of its customer, LOCOG, to provide it with a range of staff, facilities and services including premises, IT and payroll systems.
- Helen Parris
(Helen Parris, Director of Investor Relations)
: +44 (0) 1293 554400
- Adam Mynott
(Adam Mynott, Director of Media Relations or David Allchurch/Ed Orlebar, Tulchan )
: +44 (0) 1293 554400 / +44 (0) 207 353 4200
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