G4S' share price dropped 10 per cent as shareholders reacted to chief executive Nick Buckles embarrassing admission that the group doesn't have enough staff to provide security for the Olympic Games and losses on the contract could now add up to £50m. The Olympics contract disaster heaps more pressure onto Mr Buckles after his failed multi-billion pound bid for rival firm ISS last year which cost the then-chairman his job after a shareholder revolt.
G4S's new chairman John Connolly failed to back Mr Buckles on Monday when he told the Financial Times: "It would be right to consider whether any members of the senior team are best placed to take the company forward." Mr Buckles, who has been with G4S for 27 years has said he is committed to staying and that his future is linked to the company's share price performance.
It has now emerged that G4S was relying on 700 low-cost temporary managers alongside a team of 10 permanent G4S staff in its attempts to train 10,500 security staff on the £284m contract. Investors have dumped shares over concerns that the reputational damage done will have a knock-on effect later in the year when G4S bids on lucrative Ministry of Justice contracts for running the nations prisons.
