Security outsourcing group G4S will incur an overall loss worth 70m pounds for its mismanaged Olympic Games contract, the company admitted Tuesday.

The company failed to provide enough personnel to secure the Olympics and Paralympic Games resulting in 5,000 members of the Armed Forces having to be drafted in at short notice.

At the time, two directors resigned, but Nick Buckles - the Chief Executive Officer of G4S who described the handling of the contract as "a humiliating shambles" - remained in his job.

G4S has also incurred additional costs of approximately £11m, relating to charitable donations and external fees and a further £7.0m relating to the cost of sponsorship and marketing.

All of the costs will be taken in the 2012 accounts as an exceptional charge, with £50m having been provided for at the half-year based on the previous contract loss estimate.

The main difference between the previous estimate and the final settlement is an agreement to waive a larger proportion of the project management charge.

Commenting on the settlement, Buckles said: "The Olympic and Paralympic Games were a great success for the UK and we would like to reiterate our thanks to the military and the police for their support. We would also like to thank the 16,000 men and women of G4S who played their part in securing the Games despite the challenges faced by the group.

"Whilst we are extremely disappointed to find ourselves in this position, we are pleased to have concluded these negotiations with LOCOG [London Organising Committee of the Olympic Games and Paralympic Games]."

G4S' share price was down 0.46% to 279p at 08:08 on Tuesday morning.

MF

Related share prices
G4S (GFS) share price