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G4S Olympic Fine Stands at £70m
G4S is the world’s leading security firm and remains dominant in its market despite some recent turbulent public image issues. At the London 2012 Olympic Games the company was originally awarded the huge security contract, but couldn’t fulfil its promise of 10,000 security personnel and subsequently the UK’s military was drafted in as a replacement.
The resulting furore in the media and fines and costs incurred by failing to complete its contract should have affected the company adversely, however this doesn’t seem to have been the case. G4S controls some of the largest international corporate and governmental London 2012 Olympic Games despite the London 2012 incident and its profit margins have been relatively unaffected.
However it was announced in February 2013 that the fine incurred for the Olympic scandal is now larger than initially predicted and stands at a total of £70m (approximately $112.9m). This is higher than the estimated size of the fine which was previously £50m (approximately $80.6m). Whilst this appears a very large fine, the finalization of this should help to draw a line under the incident and help the company to repair its image moving forward.
Despite the size of the fine G4S’s size and diverse nature has protected its revenues from contract loses, the company is large enough that there are a limited number of other companies which can fulfil contracts on a scale that it can, making it invaluable to those looking to outsource to the private sector. This should help to protect the company’s revenues for the immediate future despite the size of this fine.
To know more, please read our case study: G4S Remaining Strong Despite Olympic Size Embarrassment