By Paddy McGuffin in Britain:
G4S makes £61m in profit after Olympics fiasco
Tuesday 28 August 2012
The firm responsible for the Olympics security fiasco boasted of its confidence in securing future government contracts despite the debacle today.
G4S admitted that its bungled security contract will cost it in the region of £50 million as it published half-year results today.
Its half-year results revealed a significant drop in pre-tax profits to £61m from £151m the previous year, although profits were held flat on an underlying basis after sales increased 5.8 per cent to £3.9 billion.
G4S‘s failure to provide all of the 10,400 contracted guards for London 2012 forced the government to draft in thousands of extra police and soldiers to provide security.
Chief executive Nick Buckles was hauled over the coals by the Home Affairs Select Committee and conceded the contract had been a “humiliating shambles.”
There were also calls for all current and planned government contracts with the firm to be re-examined.
But G4S said it had lost no contracts as a result of the Olympics and insisted it would continue to play a “major role” in the public sector, with a £3.8bn-a-year project pipeline.
The firm’s move into providing services for a number of police forces – as the government unveiled plans to slash officer numbers by 20 per cent – has sparked serious concern from the Police Federation.
The federation’s head of communications Metin Enver told the Star that officers had long-standing concerns about private-sector involvement in policing.
“The Olympics has exacerbated these concerns,” he said.
“At the end of the day we understand that private firms will do what they do, but the problem is that we have a government creating these opportunities.
“G4S is a symptom, the greater illness is that the government are selling off our public services to the highest bidder.”
Protesters challenge G4S over Jimmy Mubenga’s death: here.