g4s shares tumble
Last Updated : GMT 19:12:39
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.\"

arabstoday
arabstoday

GMT 03:39 2017 Friday ,24 November

European markets wobble amid US Thanksgiving holiday

GMT 22:09 2017 Thursday ,23 November

Bahrain Bourse daily trading performance

GMT 02:02 2017 Thursday ,23 November

Asian markets rally after Wall St lead, euro struggles

GMT 22:40 2017 Wednesday ,22 November

Bahrain Bourse daily trading performance

GMT 11:50 2017 Tuesday ,21 November

European stocks shrug off Germany's political woes

GMT 03:59 2017 Tuesday ,21 November

Weekly inflation decreases by 0.88%

GMT 23:50 2017 Monday ,20 November

Bahrain Bourse daily trading performance

GMT 14:54 2017 Sunday ,19 November

Bahrain Bourse daily trading performance
Arab Today, arab today
Arab Today, arab today

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*

g4s shares tumble g4s shares tumble

 



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*

g4s shares tumble g4s shares tumble

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today PNG police start removing refugees

GMT 03:00 2017 Friday ,24 November

PNG police start removing refugees
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria congress to go ahead

GMT 02:24 2017 Friday ,24 November

Syria congress to go ahead
Arab Today, arab today IS media offline for a day

GMT 02:10 2017 Friday ,24 November

IS media offline for a day
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Human form of 'mad cow' disease

GMT 00:11 2017 Friday ,24 November

Human form of 'mad cow' disease
Arab Today, arab today British woman jailed in Iran to appear

GMT 03:19 2017 Friday ,24 November

British woman jailed in Iran to appear
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mitsubishi Materials units falsified product

GMT 03:24 2017 Friday ,24 November

Mitsubishi Materials units falsified product
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Solaf happy for participating in “Hotline”

GMT 07:56 2017 Wednesday ,22 November

Solaf happy for participating in “Hotline”
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:03 2017 Tuesday ,21 November

Abeer Sabry reveals reason of “The Flood” success

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 09:12 2017 Thursday ,23 November

4 in 10 cancers due to modifiable risk

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
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