LONDON 2012 – LOCOG publishes 2011-2012 report and accounts

The London Organising Committee of the Olympic Games and Paralympic Games Ltd (LOCOG) today published its accounts for the 18 month period ended 30 September 2012.   The Company expects that a final set of accounts for the six months to 31 March 2013 will be filed in June 2013.

The full report and accounts to 30 September 2012 have been filed at Companies House, and can be viewed on the London 2012 website, here.

The anticipated final cost of the core activity for the London 2012 Games is circa £2.4 billion, and is financed by private-sector revenue programmes, including domestic and international sponsorship, merchandising and licensing, ticket sales, and a proportion of the revenue raised by the International Olympic Committee through selling global television broadcast rights, and global sponsorship.  LOCOG received public sector funding for the Government's Paralympic funding obligations and the relocation and reconfiguration of venues.

The Company continued its track record in raising revenue throughout the 18 month period to reach its target of £2.4 billion income to cover these staging costs.  

In addition, the Company received approximately £0.8 billion funding for additional scope covering Games requirements, which the Government identified that LOCOG was best placed to deliver.

The key operations in the 18 months leading up to and during the staging of the Games included:

Sebastian Coe, Chairman of LOCOG, commented:  "During the 18-month period covered by this report LOCOG worked tirelessly to integrate and implement the detailed planning carried out since 2005, thereby lifting our operational efficiency and resilience, creating facilities in which athletes would be able to compete and train in the best possible conditions, and ensuring an unforgettable experience for the public.

"Despite some monumental challenges, not least the weather leading up to the Games, we did all this whilst continuing to bear down on costs and raise our remaining revenue.  I am delighted to report that we were able to operate without utilising the contingency made available to us by Government and we remain on track to break even when we file our final accounts later this year.

"My sincere thanks go to my team, to our partners, to the amazing athletes and role models and to the UK public for their support, for joining in, for turning up and for making last summer the outstanding success it was.

The report and accounts show a cumulative operating loss of £53 million.  However, it should be noted that as at 30 September 2012, deferred revenue was £78 million.  This deferred revenue together with other small revenue streams, such as royalty income, will be sufficient to cover the brought forward loss and the cost to dissolution, placing the Company in a position to proceed on schedule towards a solvent liquidation in mid-2013.

It is anticipated that the Company's performance in raising funds and controlling expenditure will meet one of the key objectives of delivering great Games within a balanced budget. 

Directors' remuneration is outlined on page 101 of the annual report and accounts.  This section includes details of the cumulative performance related awards made by the Remuneration Committee to the Chief Executive, Paul Deighton over the seven year period on the delivery of a successful Games.  As announced in previous years, Paul Deighton will be donating his performance award to charity. 

A final set of accounts for the six month period to 31 March 2013 will be filed in June 2013.

LONDON  2012