Bungled games deal costs G4S £70m

G4S is to take a bigger-than-expected £70m hit on its bungled contract for the 2012 Olympics and Paralympics, the security company said today.

The loss, which compares with its previous estimate of £50n, follows months of negotiations with Games organisers Locog.

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

Chief executive Nick Buckles said: “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.”