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The FTSE 100 group’s shares fell 5¼p to 261p after it took a loss of £50million against the London 2012 contract failure which resulted in military personnel being drafted in to make up for
a shortfall of G4S staff. That contributed to half-year profits diving from £151million to £61million on sales up 5.8 per cent to £3.9billion. Chief executive Nick Buckles, who has faced
strong criticism for his handling of the Olympics debacle, said he was disappointed at the problems and pledged there would be no repeat at the Paralympic Games, which would be fully
staffed when they start today. Buckles said: “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. “It is a big setback and we need to rebuild the brand over the coming months and years. “I hope I keep my job.
I’ve been with the company for 28 years, 10 years as chief executive, and I think we have delivered good returns for investors.” Underlying profits, excluding the Olympics contract and
allowing for currency changes, were flat at £236million as profit margins were squeezed. Revenues grew fastest in emerging markets, up 10 per cent to account for a third of total sales and
on track to hit half by 2019. The company is cutting 1,100 jobs, mainly overseas, as part of a restructuring programme unveiled in December. Analysts were cautious about the outlook
pointing out the dividend payout was unchanged at 3.42p per share. Louise Cooper at BGC Partners said: “Of all their contracts to fluff the Olympics was the worst by far. “It was guaranteed
to give them maximum bad publicity globally, including in their key emerging markets. G4S may either lose revenue as contracts are awarded to competitors or have to take a hit to margins
as it has to undercut those competitors to win business.”