The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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G4S seeing signs of recovery in US and UK Date: Tuesday 15 Mar 2011 LONDON (ShareCast) - Security firm G4S notched up its sixth successive year of underlying revenue, profit and dividend growth since the group took on its current incarnation in 2004. Profit before interest, tax and amortisation rose 4.2% to £527m in 2010 from £506m in 2009, in line with turnover, which grew 4.1% to £7.4bn from £7.1bn the year before. Like for like growth in turnover eased to 2.1% from 3.7% in 2009, as the Cash Solutions side of the business went ex-growth. The Secure Solutions side of the business saw organic turnover growth of 2.8%, while Cash Solutions saw like for like revenue dip 1.1%. Margins in the Secure Solutions business improved to 6.9% from 6.8% in 2009 but the Cash Solutions division saw margins fall to 11.0% from 11.3%. The final dividend has been hiked by 14% to 4.73p, making the total dividend for the year 7.90p, up 10% on 2009’s pay-out. “The excellent performance in 2010 has been achieved despite continued uncertainties with the global economic downturn,” noted G4S chief executive Nick Buckles. “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,” Buckles added. “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,” Buckles said.
Security firm G4S should just scrape above £400m at the pre-tax profit level when it releases results for full year 2010. Charles Stanley is above consensus with its prediction of profit before tax of £434m but almost a penny below the market line with its forecast of earnings per share of 21.2p. “During 2010, G4S has spent about £42m on acquisitions of which the majority was in building a capability in the South American market especially in Brazil. Given the international nature of its business, i.e. the UK is less than 15% of turnover, the group remains well placed to grow. New markets (e.g. Asia, Africa, Middle East and South America) account for about 33% of group profits,” the broker said.
Looks like a steady (boring) climb to 270p again....hopefully we can hold that price and roll on to 300p and a firm takeover offer of 360p, and a counter-bid at 390p???? Here's wishing!!
That is just rumour at present, as i can't seem to find any evidence of it at mo. Probably just a ramper....as usual....
Apparently KKR are looking at a price of 350p for a takeover of G4S. See 9 Jun post of same M&A @ 375p. DYOR...
Just read in the T.graph that Questor picks GFS as a BUY. Not sure why, maybe it's because they aim to save £10M by not repainting prisons.... Eh? Still it would be nice to see some upward trend from the T.graph readers but I doubt that Questor will be able to help this stock as it appears to be sliiiiiding back to 245p.....
G4S looks like to provide contract prison cells to police....
Skagen Trust sells 10 pct G4S stake at 255p LONDON, March 17 (Reuters) - Skagen Trust, the top shareholder in G4S, raised 360 million pounds ($539.7 million) by selling a 10 percent stake in the world's largest security firm, according to a source familiar with deal. Skagen Trust, owned by the late Jorgen Philip-Sorensen -- the founder of Group 4 who died in January this year -- sold 141 million shares in G4S from a holding of about 172 million shares.
Anyone got any news on G4S?