Shares in Olympics security fiasco group G4S fell sharply for the third day running as investors feared that its reputation had been severely damaged and pressure grew for its chief executive to quit.
Around 10% of G4S’s total revenues come from the UK Government which are now at risk.
The shares dropped another 24.9p to 253.9p taking the three-day fall to more than 45p.
City analysts were divided as to whether this meant there was a buying opportunity or that the shares have further to fall.
Chief executive Nick Buckles failed to win the backing of his chairman today. John Connolly, who only became chairman in May after G4S’s failed £5 billion bid for rival ISS last year, said: “It would be right to consider whether any member of the senior team are best placed to take the company forward.”
Broker Jefferies cut this year’s earnings forecast by 12% and downgraded the shares to hold.
It said: “We fear the Olympics reputational negative may impede G4S’s ability to fully participate in forthcoming UK public-sector outsourcing opportunities.”
Seymour Pierce cut from “buy” to “hold” with a target price of 240p a share. Panmure Gordon did the same but its target is 300p.
