London 2012 publishes its final report and accounts

30 May 2013 / 10:54

The London Organising Committee of the Olympic and Paralympic Games Ltd (LOCOG) has today published its final report and accounts for the six month period to 31 March 2013.

The full report and accounts have been filed at Companies House, and can be viewed on the London 2012 website here.

Over its eight year life the company has been successful in achieving revenues of £2.41 billion through private sector revenue programmes, whilst containing costs at £2.38 billion. As a result:

LOCOG will make payments of £5.3 million to the British Olympic Association (BOA) and £2.6 million to the British Paralympic Association (BPA) to honour its contractual obligations under their respective Joint Marketing Plan Agreements.

LOCOG will pay approximately £20 million to the Department for Culture, Media & Sport (DCMS) to fulfil commitments under certain government grant agreements, such as the grant to cover the contributions to the cost of the Village after it passed into public ownership.

As part of an agreement with the National Lottery, royalties of £1.3 million received but not required to fund the operation of the Games will be donated to Games legacy projects, with £1 million going to the International Inspiration charity and £0.3 million going to the Join In Trust. 

In addition, over its lifetime LOCOG has donated to UK Sport £7.4m of royalties it received from the Team 2012 joint venture.

Chairman of LOCOG, Seb Coe, said: “One of our key objectives was to deliver an outstanding Games within a balanced budget and I am proud to say that we have achieved this, thanks to the strong management of our core finances. It means we can make payments to the BOA and BPA, allowing both organisations to move into their next round of Olympic and Paralympic commitments with some additional certainty, return monies to DCMS, while also leaving a legacy for the International Inspiration charity and Join In Trust for them to continue their excellent work.”  

LOCOG has also managed its grant funded activities, delivered on behalf of the Government, in an equally careful manner, which has resulted in £190m worth of savings on grants that were made available to the company. This is as follows:

£124m saving on Home Office security grant funding including £102m savings announced at the time of the settlement with G4S.

£17m saving on Government Olympic Executive grant funding 

£19m of pre-Games/Games time contingency funding not drawn.

£30m of post-Games contingency funding not drawn.

Chief Financial Officer of LOCOG, Neil Wood, said: “Over the past six months the small team of people that remain within the company having been working to meet the necessary steps in the dissolution process. This has included closing out thousands of contracts and selling off or, where possible, gifting thousands of assets to other organisations such as schools, charities, sports and community clubs. It is thanks to this hard work that we have been able to deliver such positive results.”  

These accounts are the final accounts to be prepared by the company, therefore all costs right through to final liquidation and striking off are accrued for. Following the directors’ declaration of solvency, it is anticipated that the members of LOCOG (the British Olympic Association, the Mayor of London and the Department for Culture, Media & Sport) will, as planned, shortly place the company into a solvent Members Voluntary Liquidation and appoint Phillip Sykes and Jeremy Willmont of Moore Stephens LLP as liquidators. 

British Olympic Association Vice Chairman David Hemery Responds To The Games Distribution Announcement From LOCOG

"One of the primary reasons the London 2012 Games were such a resounding success was the support of the British public. Time and again, Olympic and Paralympic athletes from around the world talked about the atmosphere of the Games and the impact of the enthusiastic crowds that filled the venues. From the torch relay through the two Games, the morale of the nation was lifted and a gift given to the world. The news today is an opportunity for the BOA to say thank you -- to LOCOG, to the British Government, to the thousands of volunteers who were tireless in their enthusiasm and to the millions of people who supported the Games and Team GB. "