G4S, the FTSE 100 security firm dogged by criticism over its handling of the London 2012 Olympics contract, yesterday said it has signed a five-year contract with oil giant Shell. Under the agreement G4S will provide security solutions to the oil major in more than 30 countries.
by Suzie Neuwirth: September 5, 2013, 1:32am
G4S, the FTSE 100 security firm dogged by criticism over its handling of the London 2012 Olympics contract, yesterday said it has signed a five-year contract with oil giant Shell.
Under the agreement, which has the option of a two-year extension, G4S will provide security solutions to the oil major in more than 30 countries. The deal value was not revealed, but G4S said it is one of the groupâ€™s largest global contracts and will deploy over 3,000 people.
G4S already has a number of other contracts with Shell.
The troubled security firm is looking to turn around its fortunes after a number of high-profile fiascos, including failing to provide adequate staff for the Olympics and allegations that it overcharged the government on electronic tagging contracts.
It replaced chief executive Nick Buckles with Ashley Almanza in May and hired Himanshu Raja as its new chief financial officer last month, in a bid to restore its reputation and cut its soaring Â£2bn debt pile.
Last week, Almanza announced a series of drastic moves to avoid a credit rating downgrade, including a Â£350m share placing and Â£250m of disposals.
â€œAlmanza came across very well at last weekâ€™s results. The deal is consistent with his message that he is looking to overhaul the companyâ€™s operations,â€ Gideon Adler, analyst at Investec, told City A.M. â€œThe resources sector is a particular pool of revenue that G4S is trying to go after.â€
Shares closed 0.5 per cent lower at Â£2.56.
The Telegraph: G4S is solely to blame for Olympics security fiasco and must waive Â£57m fee, MPs say
G4S is â€œfirmly and solelyâ€ to blame for the eleventh hour security fiasco that blighted the run-up to the Olympics and should give up its Â£57m fee, according to a damning report by MPs.
The Guardian: G4S scrambles to raise Â£600m by selling shares and business units
Private security firm’s debts have ballooned to Â£2bn since its public dressing down by MPs over the Olympics fiasco
G4S, the private security firm that failed to provide enough guards for the London 2012 Olympics, is scrambling to raise Â£600m by selling shares and business units to cut its debts, which have ballooned to Â£2bn since its public dressing down by MPs.
The company, which also stands accused of defrauding the government by charging for tagging offenders who had returned to prison or even died, is hoping to raise Â£350m by selling fresh shares and up to Â£250m by disposing of non-core businesses.