Arab Today, arab today g4s shares tumble
Last Updated : GMT 08:28:01
Arab Today, arab today
Arab Today, arab today

G4S shares tumble

Arab Today, arab today

Arab Today, arab today G4S shares tumble

London - AFP

G4S shares slumped on Monday after the British security group warned that its failure to provide enough guards for the London Olympics would cost it up to £50 million ($78 million, 64 million euros). The admission, made over the weekend, prompted downgrades from brokers Jefferies and Seymour Pierce, as well as Royal Bank of Scotland and UBS. It also sparked intense speculation over the future of G4S boss Nick Buckles. In reaction, G4S\' share price dived by more than 10 percent in early morning trade. The stock stood at 251.9 pence in late afternoon deals, down 9.62 percent from Friday\'s closing level. London\'s FTSE 100 index of top companies, on which G4S is listed, fell 0.19 percent at 5,655.62 points. G4S chief executive Buckles was forced to apologise on Saturday for recruitment blunders that have forced the British government to deploy extra troops to guard the London Olympics at the last minute. Buckles said that he was \"very sorry\" that 3,500 troops have had to be drafted in just two weeks before the Games, after the company admitted it could not provide the total 10,000 guards it said it would. Speaking publicly for the first time since details of the fiasco emerged last Wednesday, Buckles confirmed that G4S faces losses of between £35 million and £50 million in the current financial year as a result of the blunder. This amount covers the cost of increased military deployment resulting from the shortfall in staff, plus any other costs incurred. \"We accept that we underestimated the task of supplying staff for the Olympics. We deeply regret that,\" Buckles told BBC radio on Saturday. He admitted that he had only realised \"eight or nine days ago\" that there would be a shortfall. \"It\'s only when you get closer and closer to the Games that you realise that the number isn\'t as high as you expect,\" he said. In response, Seymour Pierce stockbrokers removed its \"buy\" rating on the stock on Monday, and slashed its profit forecasts for the current financial year by £60 million. \"It appears certain that Mr Buckles will fall on (his) sword along with other senior UK management,\" said Seymour Pierce analyst Kevin Lapwood. \"This could lead to a period of instability at the company which appointed a new chairman just over a month ago. \"Whoever is in charge will have a lot of work to do to repair the company\'s reputation, especially at home in the UK and with the UK government, its single largest customer. This will be crucial for the company\'s future.\" Broker Jefferies meanwhile downgraded G4S shares from \"buy\" to \"hold\", adding that this was due partly to reputational damage. \"We fear the Olympics reputational negative may impede G4S\'s ability to fully participate in forthcoming UK public sector outsourcing opportunities,\" said Jefferies analyst Kean Marden in a note to clients. Lapwood said he remained hopeful that G4S would recover from the crisis. \"There will be some short-term repercussions but overall we believe G4S has a good track record with the UK government. \"The shortcomings on the Olympics contract should not significantly affect its chances of benefiting from government outsourcing in the longer term.\"

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today g4s shares tumble Arab Today, arab today g4s shares tumble

 



Arab Today, arab today
Arab Today, arab today Laptop ban sparks ire

GMT 09:02 2017 Thursday ,23 March

Laptop ban sparks ire
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
Arab Today, arab today AT&T, Verizon join Google ad boycott

GMT 10:30 2017 Thursday ,23 March

AT&T, Verizon join Google ad boycott
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Merna Waleed praises her work with Soad Hosni

GMT 07:03 2017 Wednesday ,22 March

Merna Waleed praises her work with Soad Hosni
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 07:12 2017 Tuesday ,21 March

Donia Abdel Aziz participates in "Game of Silence"

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 07:03 2017 Thursday ,23 March

Spider Venom May Offer Hope to Stroke Victims

GMT 10:18 2017 Tuesday ,21 March

Kuwait's tourism industry to be worth

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday