After initial estimates of £50 million, G4S have finally agreed to settle with Locog for the failure to deliver on the Olympic contract, for £70 million.

The penalty for failing to provide sufficient personal numbers to cover the arranged security, that G4S had agreed to provide, includes the management fee, which was expected to be retained by the world’s largest security provider. The fallout saw the government deploy armed service personal in order to cover the shortage.

G4S hopes to draw a rapid line over the failure through the £70 million compensation package and reassure the Government, with G4S Chief Executive Nick Buckles saying on Tuesday: “The UK Government is an important customer for the group and we felt that it was in all of our interests to bring this matter to a close in an equitable and professional manner without the need for lengthy legal proceedings".

In recent months the company has shown signs of recovery from the blow to its reputation, with shares rising 10 percent within the past three months, with contracts continuing to be won in the UK.