LONDON, July 13, 2012 /PRNewswire/ --
G4S is totally committed to delivering a safe, secure and
successful London 2012 Olympic and
Paralympic Games. The Company is entering the final stages of
an extremely complex workforce supply contract which is on an
unprecedented scale.
We have recently encountered significant difficulties in
processing applicants in sufficient numbers through the necessary
training, vetting and accreditation procedures. As a result,
we will be unable to deliver all of the necessary workforce
numbers.
We have worked very closely with LOCOG throughout the build up.
At the point we felt that we could no longer assure the scale of
the security workforce we had committed to, we advised them of the
situation. The Government has therefore decided to increase
the number of military personnel who will work at the Games.
We are grateful for the additional military support. We do
not underestimate the impact on the military personnel and their
families and express our appreciation to them.
G4S accepts its responsibility for the additional cost of the
increased military deployment resulting from the shortfall in
workforce delivery. The company is also incurring other
significant costs as it endeavours to meet the contract challenges.
Whilst it is not possible to gauge the precise financial
impact, it is estimated that the Company will incur a loss on the
contract in the range of £35m - £50m, all of which will fall in the
current financial year.
G4S is fully aware of the importance and significance of its
role in ensuring that the 2012 Games are secure and successful.
The Company deeply regrets that, despite the relentless
efforts of so many of its people, it is unlikely to deliver in full
its obligations to LOCOG, to the Government and to everyone with an
interest in these Games.
Our immediate priority is to work with LOCOG and the military to
ensure the necessary workforce delivery. When the Games are
finished, the Board will conduct a full review of our performance
on delivering this contract.
Nick Buckles, CEO said:
"We are deeply disappointed that we have not been able to fully
deliver against our contract with LOCOG and that it has been
necessary to call upon the additional military personnel. In
partnership with the military and LOCOG, we are working flat out
around the clock to resolve the situation. We are determined
that together we will deliver a successful and secure Games.
I would like to thank the members of the current security
workforce who are already on the ground securing many of the
Olympic sites across the country."
John Connolly, who joined G4S as
Chairman on 8 June 2012, added:
"Since I joined the Company I have seen the huge focus which has
been placed on delivering this contract. It is a significant
disappointment to everyone at the Company that we have fallen short
of our obligations.
I know however that everyone involved throughout G4S is doing
everything they can to improve the situation and we are putting
every resource behind this effort."
Notes to Editors:
G4S plc
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 http://www.g4s.com.
For further enquiries, please contact:
Helen Parris - Director of Investor
Relations
G4S
+44-(0)1293-554400
Media enquiries:
Adam Mynott - Director of Media
Relations
G4S
+44-(0)1293-554400
Michael Huberts
Martin Robinson
Tulchan Group
+44-(0)207-353-4200