latest music news
G4S suffers more stock market woe
G4S suffered a fresh stock market beating as it continued to be rocked by the fall-out from its Olympic debacle.
Its shares fell 6% on the day chief executive Nick Buckles admitted the episode had been a "humiliating shambles" and that the firm's reputation lay in tatters.
Meanwhile, Keith Vaz, chairman of the Commons Home Affairs Select Committee, called on G4S to waive its £57 million management fee and any others associated with the contract.
The 14.6p fall to 240p mean G4S's shares have dropped 17% since last Wednesday, wiping £700 million from its market value.
The company has admitted the episode will hit profits by up to £50 million but investors are more worried that the damage to its reputation will cause it to lose contracts in the future.
There is huge pressure on Mr Buckles to step down, creating more uncertainty for the beleaguered firm.
Panmure Gordon analyst Mike Allen said the ramifications of the debacle are likely to impact its growth.
He said: "Despite the sharp share price fall yesterday, we think there remain too many unknowns to switch to a more positive stance at this juncture.
"With all eyes on the company and how it executes during the Games, we would expect sentiment both from a media and share price perspective to remain negative in the near term."
He added that G4S's potential to carry out major global events in the future will clearly be impeded.