British private security contractor G4S is expected to announce a £50 million loss due to its embarrassing failure to provide thousands of guards for the London Olympics.
G4S chief executive Nick Buckles admitted its £284m Olympic contract was a “humiliating shambles” after the group failed to provide 3,400 security guards for the London Olympics just days before the Games opened.
Now the company is expected to post a first-half profit of around £96 million compared to £154 million in 2011.
The Olympic fiasco has also hit the company hard in other spheres including future contracts.
G4S, which is deemed the world’s largest security firm in terms of revenues, has already decided not to enter major sporting contracts including the 2014 FIFA World Cup.
Meanwhile, analysts are warning G4S shareholders that the Olympics fiasco is taking its toll on the company.
"We understand G4S dropped out of its bids for the UK DWP [Department for Work and Pensions] PIP contracts [personal independence payment, which are due to replace disability living allowance next year] owing to management attention being diverted to the Olympics contract, and we wonder if there has been any further fallout in terms of bidding activity,” UBS bank analysts said.
This comes as Buckles is also expected to face the MPs for a second questioning on G4S Olympic shambles in September.