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NTERIM MANAGEMENT STATEMENT G4S, the international security solutions group, reports today on trading for the year to date, including an overview of financial performance to 30 September 2011. Trends from the first half continued into the third quarter with continued strong performances in new markets and stable growth in developed markets. An overview of the financial performance for the nine months to 30 September 2011 is as follows: In the first nine months of 2011 overall revenues grew by 4% at actual exchange rates compared to the same period last year and by 5% at constant exchange rates. The group operating margin was slightly lower than the same period in 2010 at both actual and constant exchange rates. Organic Growth Overall organic growth was 5%,with 3% in developed markets and 9% in new markets. * In secure solutions, organic growth was 5% helped by a continued strong performance in [UK integrated services] and new markets * In cash solutions organic growth was 2% overall. New markets grew 10%. Whilst in developed markets growth was still negative, it improved compared to the first half of 2011. Margins Overall margins were slightly lower compared with the same period last year. * Secure solutions margins were up slightly, in line with performance in the first six months of 2011 * Cash solutions margins performed in line with the first six months of 2011 and were down slightly on the same period in 2010
http://www.investegate.co.uk/Article.aspx?id=20111017070000H5112
G4S, which notched up a resilient performance during the recession, is growing steadily in most of its markets, and that is likely to continue, according to the Investment Column at the Independent. Just look at the UK: the FTSE 100-listed business has lost its contract to transport prisoners to and from British courts. But it has picked up plenty of new work to offset that. With a coalition Government keen to outsource more work to the private sector, together with the fears created by the recent riots, the company’s business has good prospects. Looking at the stock, we said buy at 258.6p in March and the shares are little changed from that, having found some momentum over the last few days having been caught up in the recent turmoil which hit shares indiscriminately. G4S shares should serve investors well over the coming months, according to the Independent, which recommends to buy.
Nick Buckles, Chief Executive Officer, commented: "Following a robust performance during the global recession, organic growth is accelerating in most regions and business sectors and we have a healthy pipeline of bidding opportunities, particularly in the UK government market. Our New Markets businesses (now 29% of group revenues) continue to show excellent organic growth - up 9% overall. We expect growth in Cash Solutions in developed markets (13% of group revenues) will continue to be impacted by low interest rates, but we are encouraged by recent discussions with financial institutions regarding outsourcing opportunities. At the Capital Markets Day in May this year, we highlighted our plans to invest around £200 million per year on acquisitions whilst maintaining our strict financial screening criteria. We have a strong pipeline of M&A opportunities which should come to fruition within the next six to twelve months. This pipeline, together with the recovery in growth in our existing business, gives us confidence in the outlook for the full year and into 2012. That confidence is reflected in the 8% increase in our interim dividend."
Half-Yearly Results Announcement January - June 2011 G4S, the world's leading international security solutions group, today announces its half year results for the six months to 30 June 2011. RESULTS HIGHLIGHTS * Group turnover* up 5% to £3,761 million (2010: £3,575m) * Organic turnover growth* of 5% (2010: 2%) * PBITA* up 3% to £239 million (2010: £233m) * PBITA margin* 6.4% (2010: 6.5%) * Operating cash flow generation of 60% of PBITA (2010: 72%); expect to achieve full year target of 85% * Adjusted earnings per share increased 8% to 10.0p (2010: 9.3p) at actual exchange rates and increased 10% (2010: 9.1p) at constant exchange rates * Interim dividend up 8% to 3.42 pence per share, DKK 0.2928 (2010: 3.17p/DKK 0.2877) * at constant (2011) exchange rates
http://www.investegate.co.uk/Article.aspx?id=20110823070000H0271
Security firm G4S has a good record of performing in tough times. In the last downturn, its top line growth never fell below 2%, and it has typically expanded at two percentage points above gross domestic product, notes James Ashton in the Sunday Times. Half-year results this week are expected to show 4% underlying sales growth — not bad when some outsourcers are going backwards. That is made up from 8% growth in emerging markets and nearer 2% in mature ones like Britain. G4S shares are trading on 11 times this year’s forecast earnings and nine times next year’s. Analysts think it is capable of 4% growth for the full year, 6% in 2012 (helped by the Olympics) and 10% in 2013. Despite some short-term worries, the shares should be locked up.
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Niall Feely, Managing Director, G4S Secure Solutions (Ireland) Limited commented: "We are very pleased to welcome the Managing Director of AMS, Tim O'Shea and the AMS team to G4S. This is a very important acquisition for us which allows us to expand our business and offer a stronger, more effective and comprehensive security service to some 40,000 businesses, organisations and enterprises across Ireland. Security issues are a growing source of worry to Irish businesses and it is important for us, as the industry leader, to continue to expand our services and bring greater security and reassurance to our customers".
G4S acquires Alarm Monitoring Services G4S, the world's leading secure solutions group, today announces the acquisition by G4S Secure Solutions (Ireland) Limited of certain assets of Alarm Monitoring Services (AMS) Limited (also trading as "i-watch"), a leading alarm monitoring supplier across Ireland. The purchased assets were acquired for a consideration of €2.55m payable in cash, 70% of which was paid on completion. The remaining 30% will be paid within 18 months, subject to achievement of certain results. Alarm Monitoring Services provides a range of state-of-the-art monitoring, patrol and response services to Irish businesses. This acquisition will further develop G4S's ability to deliver secure monitoring solutions to customers across Ireland.
http://investegate.co.uk/Article.aspx?id=20110713112000H0715
“In Britain its vans are a familiar sight transporting money from shops to banks, but the group operates in 120 countries, providing services from straightforward security guards to sophisticated electronic safety systems. G4S also manages prisons, operates cash machines and even runs immigration centres. (…) In Britain and America, G4S expects to win more business as the economy recovers and governments on both sides of the Atlantic outsource security to save money. (…) Buckles is also confident about prospects in emerging markets, telling investors last week that these will account for nearly half the global security market by 2019”, according to the Financial Mail on Sunday´s Midas column, which adds that, “(…) Investors may want to take some profit and sell a third of their stock, but keep hold of the rest as the group should continue to do well. New investors may want to pitch in too and hold the shares for the long term”.
Strong global security market trends and an improved gross domestic product and inflation outlook have prompted G4S (GFS) to expect organic growth and earning per share to both return to the levels achieved in the years prior to the recession. The security solutions group said that whilst its cash solutions businesses and those in Eastern Europe still face challenging market environments, its "significant" new markets businesses continued to grow strongly during the global recession. Shares in G4S, which specialises in outsourcing of business processes in sectors where security and safety risks are considered a strategic threat, were flat at 275.9p.
Outlook As expected, organic growth has started to improve in developed secure solutions markets and strong organic growth continues in developing markets. Based on recent contract awards and our bid pipeline, we expect the organic growth rate to continue to improve during 2011. AGM & Dividend The AGM will take place on 19 May 2011 and the final dividend of 4.73 pence (DKK 0.4082) per share is proposed for payment on 3 June 2011 (6 June in Denmark). Results for the six months to 30 June 2011 will be published on 24 August 2011.
INTERIM MANAGEMENT STATEMENT G4S, the international security solutions group, will be updating analysts and investors today on trading for the year to date, including an overview of financial performance to 31 March 2011. In the first quarter of 2011, overall revenues grew 4.7% at constant exchange rates compared to the same period last year, and grew 3.8% at actual exchange rates. The group operating margin was slightly lower. An overview of the financial performance for the three months to 31 March 2011 is as follows: Organic Growth Overall organic growth was 4% with New Markets growth at 8% and developed markets at 2%. * In secure solutions, organic growth was 5% with strong performances in the UK and New Markets and a continued improvement in North America and Continental Europe * Cash solutions organic growth was -1%, with good underlying growth in New Markets being offset by a 3% decline in developed markets. The decline in developed markets was due to sustained low interest rates continuing to cause volume pressure in markets such as the UK, Ireland and Scandinavia. The previously announced contract losses in Romania and South Africa also had a negative impact. Margins Profits for the first three months were above 2010 levels, but overall margins were slightly lower (on both a constant and actual exchange rate basis) compared to the same period last year due to lower cash solutions margins. * Secure solutions margins were maintained * In cash solutions, margins were 1% lower due to the volume issues outlined above.
http://www.investegate.co.uk/Article.aspx?id=20110411094100H5078
David Taylor-Smith, Regional CEO, G4S UK & Africa, commented: "We are very pleased to welcome Tom and his team to G4S and expect them to make a real difference to our business. We believe their market leadership, extensive client base and unmatched track record of delivery in this highly specialist area will underpin our consultancy offering here in the UK and overseas." Tom Scott, CEO of The Cotswold Group, commented: "We are very excited about the opportunities for our employees and our company through becoming part of the G4S family. We believe the Cotswold Group is highly complementary to G4S's existing operations around the world and will bring many new capabilities to G4S and its customers. The opportunity to create a major force in investigation services and to work with G4S teams in the UK and globally is an extremely exciting prospect."
G4S plc G4S acquires The Cotswold Group G4S, the world's leading secure solutions group, today announces the acquisition by G4S Managed Services (UK) Limited of The Cotswold Group Limited ("the Cotswold Group") , the UK's market leader in surveillance, fraud analytics, intelligence and investigations services from Tom Scott and other members of its management team. The Cotswold Group had revenues of £10 million in 2010 and G4S will pay a maximum consideration of £10.2 million in cash, comprising an initial payment of £8.0 million with the remainder to be paid upon the achievement of specific PBITA targets in 2011 and 2012. The acquisition will significantly strengthen the strategic development of G4S's covert surveillance and investigations capability, allowing it to embed increased intelligence offerings into its service portfolio and introduce these offerings as part of its existing solutions based contracts. Adding to similar services offered in the US, Middle East and Asia Pacific, with this acquisition G4S will become the global leader in the investigation of insurance fraud which is estimated to cost in excess of $200bn each year. The Cotswold Group will provide an intelligence-based fraud investigation services platform and give G4S the capability to pursue major opportunities within UK central and local government in areas such as benefit fraud investigation. The Cotswold Group is the largest provider of surveillance and investigative services to insurance clients within the UK, with a strong emphasis on personal injury fraud. It provides a range of surveillance and investigation services in property, motor and personal injury insurance claims, employers and public liability, employee screening, housing benefit fraud and corporate investigations. The Cotswold Group was founded in 1990 by Tom Scott, its current CEO and a former police officer who specialised in covert surveillance, combating serious and organised crime. Tom will continue to manage the business following the acquisition. The Cotswold Group is headquartered in Gloucester and currently employs 260 staff, 120 of whom are investigators located across Europe.
G4S has been a weak performer over the last month despite in-line results and an improving outlook, which was evidenced by a 14 per cent rise in the final dividend. The group remains well-placed from a competitive standpoint. It is the world’s largest security company, is one of the few large operators that can provide. Valuation remains attractive, with the stock trading on a 2012E PE of 10x. The Scotsman says buy.
G4S to run security at London Olympics By Lee Wild Date: Monday 21 Mar 2011 LONDON (ShareCast) - G4S has been handed the responsibility of looking after security at the London 2012 Olympic and Paralympic Games. The contract, thought to be worth around £100m, will see the firm recruit, train and manage a security team numbering 10,000 to work alongside the police and local authorities. It’s already been running security at the Olympic Park in London since 2008. "This deal represents where we are with our plans for the Games - we're now looking at operational delivery," Paul Deighton, boss of the London Organising Committee of the Olympic Games and Paralympic Games (LOCOG) said. "G4S will help us ensure that the security provisions in place are robust and of the highest professionalism and we welcome them to the London 2012 family."
Nick Buckles, Chief Executive Officer, commented: "Today we have announced our sixth consecutive year of underlying revenue, profit and dividend growth since G4S was formed in 2004. The excellent performance in 2010 has been achieved despite continued uncertainties with the global economic downturn, which is testament to the efforts of our global workforce of 625,000 employees. We have delivered further strong organic growth of 6.6% in New Markets, which now account for 29% of revenue and 33% of profits, and we are encouraged by signs of economic recovery in our larger developed markets of the US and the UK. In addition, our differentiated "integrated solutions" strategy is helping us to build market share with global customers. We will continue to build on our successes and remain confident about the outlook for 2011 when we expect to deliver an improved organic revenue growth performance whilst continuing to maintain our discipline on margins and cash generation."
RESULTS HIGHLIGHTS * Organic turnover growth* of 2.1% (2009: 3.7%) * Group turnover* up 4.1% to £7,397 million (2009: £7,105m) * PBITA* up 4.2% to £527 million (2009: £506m) * Margin* maintained at 7.1% (2009: 7.1%) through tight cost control * Strong cash flow generation of £442 million, 85% of PBITA (2009: 90%) * Adjusted earnings per share increased by 7% to 21.6p (2009: 20.2p) and by 6% at constant exchange rates * Recommended final dividend up 14% to 4.73 pence per share DKK 0.4082 (2009: 4.16p/DKK 0.3408) Recommended total dividend up 10% to 7.90 pence per share DKK 0.6959 (2009: 7.18p/DKK 0.5624) * Invested £65 million in a number of acquisitions to consolidate our positions in Latin America, primarily entering the thriving Brazilian market
http://www.investegate.co.uk/Article.aspx?id=20110315070000H6809