G4S has made a £2.5m donation to armed forces’ sporting and welfare organisations in recognition of more than 18,000 military personnel who assisted with Olympic security.

It’s described by the firm as a “goodwill gesture” after G4S failed to meet its £284m contract to provide 10,400 staff for the Olympic Games, forcing ministers to bring in extra troops to fill the gap.

A G4S spokesman was keen to stress that the £2.5m donation is in addition to payments it will make to the army to cover any costs they have incurred as a result of their further support.

G4S expects to make a loss of between £35m and £50m on its Olympic contract, but still intends to claim a management fee for its Olympic work.

It emerged just two weeks before the Olympic opening ceremony that G4S could not meet its £284m contract obligation to provide 10,400 staff for the Olympic Games.

G4S chief executive Nick Buckles told MPs on the home affairs select committee that he wished he had never signed the Olympics security contract and that he was “deeply sorry” his company had been unable to deliver the promised 10,000 private security staff.

Defence secretary, Philip Hammond said:
“This contribution from G4S is welcome news for the service welfare funds and will go some way to recognising the inconvenience and extra burden that this commitment has placed upon our forces and their families. I am delighted that G4S and the armed forces have worked so well together to ensure a safe and secure Games.”

The £2.5m donation has been given to the Ministry of Defence, who will use it to support armed forces’ sporting and welfare organisations.