The government was forced to turn to the military for the extra security staff during London 2012, for which G4S confirms it will pay. Chief executive Nick Buckles has apologised for the debacle.
“We were deeply disappointed that we had significant issues with the London 2012 Olympics contract and are very grateful to the military and the police for their support in helping us to deliver a safe and secure Games,” Buckles said in a statement.
G4S revealed the cost along with its interim results, where it said half-year pre-tax profits had fallen from £151m to £61m.
The company's contract was worth £284m and included the supply of 10,400 security guards to the 100 Olympic sites across the country. However, the company was unable to recruit enough in time, though it adds that it had delivered 83 per cent of contracted shifts.
Its statement said its board was reviewing the contract with the help of consultants PricewaterhouseCoopers. One of its aims was to examine why failures relating to the Olympic contract were not identified “in a more timely manner”.
Buckles told MPs in July prior to the Games that the staffing crisis had been a “humiliating shambles”. He is due to appear in front of MPs a second time to talk about the Olympics contract next month.