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Company overview Group 4 Securicor (G4S) is an international security solutions group, operating in over 125 countries throughout the world. The company was formed via the July 2004 merger between Securicor plc of the UK and Group 4 Falck of Denmark. Whilst listed on the London Stock Exchange, the group also retains a secondary listing in Denmark. The company continues to be a major employer of staff, with over 650,000 personnel employed on a global basis.
After a well-earned public holiday, and the last before Christmas, the markets will focus on interim results from security group G4S (GFS), the company that risked turning the London Olympic 2012 dream into something of a nightmare. Ultimately, the scandal may actually have only done lasting damage to Mitt Romney’s Presidential campaign as he publicly doubted the Olympics could be a success after the G4S failure. These results will give some insight into the fallout from any legal action and / or damage to profits, with the most recent broker notes in July from Jefferies and UBS estimating that damages could be between £35m - £50m.
itsgoodtotalk - the SP held up extremely well considering the PR damage the Olympics farce could have caused - probably due to the fact it was only one contract that they made a meal of - they are obviously a huge Company operating in many many countries which appears to have saved their bacon - so far !
G4S's failure to provide enough Olympic security guards has taught ministers that private firms are unsuited to providing many public services, the Defence Secretary has admitted. In an interview with The Independent, Philip Hammond said the G4S saga had caused him to rethink his scepticism towards the public sector – and made him appreciate there were some things that only state organisations like the Army could be relied upon to do. [The Independent]
All quiet here for a while!! Do we all think sp is rising steadily due to Olympics not being the catastrophe is was made out to be, in general is gfs a trusted share between us lse'ers!!
G4S PLC Update on Olympic Games Security Contract G4S notes the announcement today that Ministers have decided to mobilise the additional 1,200 troops which had previously been put on standby in order to supplement the security workforce deployment for the Olympic Games. The security of the Games is the primary focus and therefore we understand the decision by Ministers to activate the additional contingency resource as a further precaution at this stage of the process. We have made very good progress in the last few days and, in line with the revised deployment plan submitted to LOCOG, currently have around 5,800 security personnel deployed at Olympic venues. Significant numbers of candidates are now reaching the final stages of the training and accreditation process each day and we are working hard to ensure that we deliver on the commitments we made to LOCOG last week. We are grateful to the military for their support in securing the Olympic and Paralympic Games and will continue to work with them and LOCOG to ensure that the Games are safe and secure. As we have announced previously, G4S has undertaken to cover the additional costs relating to the military deployment and believes that, including the deployment of the additional 1,200 troops, the overall losses to be incurred on the contract will remain within the previously stated estimate of £35m - £50m.
Bottom? A long way off imo. This is just the start of a snowball rolling down the mountain.
where's the bottom of this cliff? when will peeps pile in?
Questor in the Telegraph takes a timely look at security firm G4S. You may have heard it mentioned recently. The issue for the firm post-Olympic debacle is reputational says Questor. Can G4S continue to win public sector work with the baggage of having ballsed up one of its highest profile contracts? The column is not so sure. The shares trade at 10.6 times earnings with the yield at 3.6%, in other words, superficially the stock looks cheap. But life is about to get very tough indeed for the firm on the sales front so Questor says hold for now.
Positive Points: Developing or Emerging Market revenues have grown. They totalled 30% of the overall group total for the full year 2011, with management targeting 50% by 2019. The group's geographical footprint remains diverse. The group operates in over 125 different countries. Following its aborted major acquisition, smaller often bolt-on acquisitions are now being targeted. Acquisition strategy will continue to focus on niche opportunities. Management previously expected to invest around £200 million in acquisitions in 2012. A focus on underperforming businesses was also previously raised, with such businesses potentially being sold. Management previously highlighted the company as a potential beneficiary of any country exiting the Eurozone. If Greece, for example, were to leave, G4S is likely to be involved in the rollout of the new currency. A progressive dividend policy continues to be pursued. An 8% increase in the total 2011 dividend was announced compared to 2010.
Negative Points Analyst estimates for profits during the current financial year are now suffering downgrades. New business wins may now suffer, with the group's reputation for delivery taking a significant hit. Changes in management now look highly likely. The episode comes in the wake of the company's aborted takeover for Danish support services group ISS. Aborted acquisition and legal settlement fees cost the company around £55 million. As of May 2012 first quarter results, overall margins were down 0.4%. This was due to contract start-up phasing costs and US government budgetary cuts. Ultra low interest rates in many of the group's markets have previously dampened demand for its Cash Solutions business – customers have less incentive to transfer money to the bank.
Financial Highlights: It is estimated that G4S will incur a loss on the contract in the range of £35 million to £50 million
Olympic Games Security Contract: The company's share price remained under pressure in early trading - falling by over 9%. Due to significant difficulties in processing security employee applicants in sufficient numbers through the necessary training, vetting and accreditation procedures, G4S will be unable to deliver all of the necessary workforce numbers. As a result, the group will incur costs as it endeavours to meet the contract challenges. Management noted that "whilst it is not possible to gauge the precise financial impact, it is estimated that the company will incur a loss on the contract in the range of £35 million to £50 million, all of which will fall in the current financial year." Furthermore, post the Games, the board will now conduct a full review of group performance in delivering on this contract. In all, consensus analyst opinion of a strong buy is now expected to suffer downgrades.
Group 4 Securicor (G4S) is an international security solutions group, operating in over 125 countries throughout the world. The company was formed via the July 2004 merger between Securicor plc of the UK and Group 4 Falck of Denmark. Whilst listed on the London Stock Exchange, the group also retains a secondary listing in Denmark. The company is currently the largest employer of staff quoted on the London Stock Exchange, employing approximately 657,000 personnel on a global basis.
favourite shorting vehicle. ???
me thinks this guy will get rid of the CEO to pave the way for a sell off to private equity......break up price about £4.10
Police forces where Olympic Game venues are located have been asked to provide extra security, after G4S failed to provide enough of their own staff.
This is a debarcle, wait for the newly appointed CEO to resign next, perhaps he can help out at the Olympic venues where his employed quality workers are failing to turn up for work? This is only going one way - DOWN this company is damaged goods, whose reputation is not ever going to shake this Olympic guarding fiasco off.
290p on Wednesday, 283p on Thursday and 254p today - that is some fall. Is it deserved? My gut feeling is that it is. Apart from the country having been let down, one wonders what is the standard of the guards that are being recruited by G4S, apparently at short notice, for the Olympics. In hindsight perhaps it was wrong of the organisers to rely on one company and clearly it was wrong of that company not to perform. I did not like what I saw and sold on Thursday and would not buy back again on principle and because I feel like another poster that the company has severely prejudiced its credibility on further Government contracts of whatsoever nature they may be. A real national failure but the silver lining is that the military are much more impressive at a high profile event such as the Olympics than G4S personnel.
Both UBS and Jefferies have downgraded their ratings for security solutions firm G4S following the news that the company expects to incur a 35-50m pound loss on its London Olympics contract. UBS has cut its recommendation from 'buy' to 'neutral' and slashed its target price from 330p to 280p, saying that while the Olympics is a one-off, the issues will prompt broader changes (such as strengthening of internal controls) leading to an ongoing increase in costs. Meanwhile, Jefferies has lowered its rating from 'buy' to 'hold' and cut its target price from 330p to 285p, saying that the reputations negative associated with this contract may impeded G4S's ability to fully participate in forthcoming UK public sector outsourcing opportunities.
Numis downgrades G4S from add to hold, target price 260p
what a joke glad i aint in this
Under pressure security solutions firm G4S estimates that it will incur a loss on its Olympics Games contract of £35-50m after failing to provide the number of staff for the event that it had committed to. During the past week, the company has grabbed the headlines after admitting that the size of the workforce would be lower than expected, prompting organisers to call in as many as 3,500 troops from the military.
The chief executive of G4S has admitted he is considering his future as head of the company and will not take a bonus after failing to provide enough security guards for the London Olympics. Nick Buckles, the chief executive, has also disclosed that Olympic organisers were late in sending the company final details of where security guards would be needed and in what numbers. In a remarkably frank interview with The Sunday Telegraph, Mr Buckles said the debacle was a "big setback" and his future would ultimately lie in the hands of shareholders. "I have got to make sure we deliver this contract. What happens thereafter is down to others. It's a big setback for us, we are really disappointed with how this has turned out," he said. "I want to stay. I have been here 27 years, I am very committed to staying. It just depends, doesn't it?" Asked if he had considered resigning, he said "of course", The Sunday Telegraph reports.