Member Info for jange

Positive Points: Restructuring initiatives taken in 2012 to reduce overhead costs and continued focus on business improvement should help margins improve in 2013, said G4S. In cash solutions, overall organic growth of 3% was recorded. Developing markets saw 10% growth and developed markets were broadly flat. Organic growth in developed markets is expected to improve as new contract wins in the UK come onboard fully, said management. Within its secure solutions division, organic growth was up 6%, flattered by strong performance in developing markets, UK government and US commercial businesses. The group's financial position was reported as strong. G4S is the world’s largest security company measured by revenues, with operations in around 125 countries.

Negative Points: The share price in G4S plummeted earlier this year when authorities were forced to draft in troops to guard Olympic venues to cover a shortfall of G4S personnel. The debacle raised fears among investors that G4S would fail to win future work with the UK government, which accounts for about 13% of overall revenues. The group has taken a £50 million cost in relation to its Olympic contract with the potential for further losses once the matter is finalised. The company is exposed to foreign exchange risk with around 70% of profits generated outside the UK, the US dollar, the Euro and the South African Rand in particular. G4S has historically been active in Merger and Acquisition activity. Overpaying or acquiring a poor business could impact future profitability. The company stated that it expects its US government market, where defence work has been muted due to budgetary delays, and its European markets to remain difficult.

Trading update: G4S delivers an upbeat statement. G4S delivered an upbeat trading statement in the wake of its Olympic contract failings earlier this year. It stated that that its financial position continues to be strong and it "remains on track to meet its cash conversion target of 85% of PBITA (profit before interest, tax and amortisation) for the full year." The company stated previously that its current estimate, with regard to the Olympic contract fiasco is in the region of £50 million and that this was provided for as an exceptional item at the half year stage, however uncertainty remains as to the final figure. In the first nine months of 2012, overall revenues compared to the same period last year, excluding the London 2012 contract, grew by 6.3% at constant exchange rates and by 4.1% at actual exchange rates. Including the London 2012 contract, revenues grew by 9.2% at constant rates and by 6.9% at actual exchange rates. As expected, the group's operating margin was lower compared to the same period in 2011

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.

Positive Points: Growth in the industry measure, revenue per available room (RevPAR), was achieved across all regions. 5.6% global RevPAR growth year to date was reported. Accompanying management comments noted that "forward bookings remain encouraging and we are confident that IHG is well positioned to continue to outperform based on the considerable strengths of the business and our focused strategy for high quality growth." Some 8,603 rooms (56 hotels) were added and 3,224 rooms (25 hotels) removed in the quarter, with signings of 13,304 (85 hotels). $500m was returned to shareholders in October (2012) via a special dividend. A further $500m share buyback programme will commence in Q4 2012. Discussions regarding the disposal of InterContinental New York Barclay continue, but will now be opened up, with the board expecting strong interest from a wider group of prospective buyers. The dividend policy remains progressive. A 31% increase in the interim dividend payment was announced, with management highlighting both a rebalancing process and confidence in the outlook as underlying the increase. A strong focus on costs remains. The company continues to enjoy broad geographical diversification. The Emerging Markets remain a focus of growth. The company continues to build on its leading position in Greater China. It opened 2,704 rooms (9 hotels) in the quarter, including 3 Crowne Plaza hotels (1,089 rooms). The group remains subject to speculative M&A rumour.

Negative Points: The UK's Office of Fair Trade previously accused the group of anti-competitive behaviour. If proved, a fine could be suffered. InterContinental has denied the charge. Management noted that "the global economic environment remains challenging." Overall Revenue per available room (RevPAR) rose by 3.9%, down from 6.1% in the second quarter. Trading for its European operations remained difficult - RevPAR rose by 2.0% compared with 4.6% in the US. The hotel and travel industry remains vulnerable to geopolitical shocks, natural disasters, terrorism and health scares such as the Sars Virus. The group's plans for expansion in China could be thwarted if there is a downturn in the country's economy. Broader aggressive industry expansion in China continues to fuel potential overcapacity concerns. The company remains cyclical in nature. Government spending cuts have yet to be implemented in the group’s biggest market, the US.

Financial Highlights: Group revenue rose by 1% - 3% when adjusted for currency movements. Operating profit rose by 9% to $167 million. Group net debt declined to $472 million from $644 million in 2011.

Third quarter update: InterContinental enjoys growth across all regions. The group's third quarter results broadly reassured investors. Growth in the industry measure, Revenue Per Available Room (RevPAR), was achieved across all regions, with management highlighting outperformance in key markets such as the US and Greater China. The board's preferred brands drove underlying revenue growth despite a number of industry wide issues such as the timing of holidays, slowing economic growth in certain markets and the political leadership change in China. On the downside, previous UK Office of Fair Trading allegations have raised uncertainties, whilst ongoing economic growth across the US and China remains far from assured. In all, InterContinental continues to please. An asset light strategy has underwritten significant returns of cash, whilst a bias towards the US and China have helped insulate it from challenges in Europe. The credit crisis itself has arguably fortified the group's position, making it more difficult for entrants and smaller rivals to borrow and compete, whilst talks regarding asset sales remain ongoing. On balance, with the share price up around 40% over the last year,

Company overview IHG (InterContinental Hotels Group) is a global hotel organisation with nine hotel brands including InterContinental® Hotels & Resorts, Hotel Indigo®, Crowne Plaza® Hotels & Resorts, Holiday Inn® Hotels and Resorts, Holiday Inn Express®, Staybridge Suites®, Candlewood Suites®, as well as its two newest brands, EVEN™ Hotels and HUALUXE™. The company franchises, leases, manages or owns over 4,500 hotels and more than 672,000 guest rooms in nearly 100 countries and territories

Positive Points: Occupancy levels have remained steady at 96% across its portfolio for the period from 1 July to 6 November 2012. At its Lakeside development, a proposed 325,000 square feet retail extension has secured planning consent. A new leisure destination at Lakeside comprising of new cafes, restaurants, bars and various leisure uses is also being worked on. CSC said it acquired for £2.8 million a 17 acre property adjacent to the Metrocentre, Newcastle with potential for future development. At Watford, terms have been agreed with the local council for redevelopment of adjoining Charter Place to create a combined 1.4 million sq. ft. regional destination. In the City of Nottingham, the group said it was close to agreement with the local authority on the redevelopment of Broadmarsh and the surrounding area. The company own ten of the UK’s top 25 shopping centres including The Trafford Centre, Lakeside, Metrocentre, Braehead, and The Mall at Cribbs Causeway, and in-town prime destinations such as Cardiff, Manchester, Newcastle, Norwich, Nottingham, Bromley, Uxbridge, Watford and Stoke-on-Trent.

Negative Points: The U.K. economic environment remains challenging with consumer confidence and disposable incomes at extremely low levels. British retailers have struggled as government austerity measures, rising prices and stagnant wages growth force shoppers to cut back on spending on non-essential items. The impact of the internet on the traditional retailing industry provides medium to longer term uncertainties.

Financial Highlights: The group issued a £300 million 2.5% 2018 convertible bond which completed in October and improved the group’s cash and available facilities to £289 million at 30 September. At 30 September 2012 net debt had increased to £3.5 billion.

interim statement: Capital Shopping enjoys a rise in shoppers. Capital Shopping Centres registered a second consecutive quarter of improving footfall along with occupancy levels remaining steady at 96% (95% - June 2012). It also added that 60 new stores have opened at its centres since June. CSC said tenant investment in new and current stores amounted to more than £50 million for the year to date. A total of 45 new long-term leases had also been agreed which accounts for a total of £12 million worth of annual rent, and represent a 6% increase from the previous rent for those units. David Fischel, chief executive of CSC, said: "Our prime UK shopping centres have recorded positive momentum with steady footfall figures and the opening of 60 new stores and restaurants in the period." Overall, given the uncertain outlook for UK consumers,

Company overview A Real Estate Investment Trust (REIT), Capital Shopping Centres Group PLC (CSC) is a leading UK specialist developer, manager and owner of pre-eminent regional shopping centres. With a portfolio of 14 centres representing 16 million square feet of retail space and a valuation of £6.9 billion, CSC's assets attract well over 300 million customers a year. The group's assets comprise of five major out-of-town centres including four of the UK's top six - Trafford Centre, Manchester; Lakeside, Thurrock; Metrocentre, Gateshead; Braehead, Glasgow and The Mall at Cribbs Causeway, Bristol - and nine in-town centres including centres in prime destinations such as Cardiff, Manchester, Newcastle, Norwich and Nottingham. The group is currently (31Oct2011) a constituent in the UK's premier FTSE 100 index.

Positive Points: International sales had a strong second quarter, up 6.1% with strong like-for- like growth reported in key markets. 19 new international stores were opened in the period, with over 30 to follow in the second half of the year. Multi-channel sales grew by 22% in Q2. A number of senior management changes were announced in July. John Dixon was appointed as Executive Director for General Merchandise from 1 October 2012 and Belinda Earl joined as Style Director. Yesterday, Francis Russell was appointed Trading Director in Womenswear, while Janie Schaffer is joining M&S as Trading Director of Lingerie and Beauty, starting the role in early 2013. In the period, and in line with its three-year plan, M&S launched a new concept store in Cheshire Oaks, which is performing 30% ahead of expectations. It revealed that all new concept stores have delivered sales 2.6% ahead of the rest of the business. Beauty shops have been installed in 28 stores. M&S also launched a new home concept, which is now in 11 stores and has seen customers shopping there double, said management. The format is now being rolled out and 50% of the home space will be converted by Christmas. The company reported being well-positioned for its highly important Christmas season that will include a festive TV advertising campaign.

Negative Points: Management outlook comments were cautious in tone with "recent trading being volatile". Unseasonal summer weather and stock management issues left stores short on bestselling womenswear lines. The retailer reported same-store sales in its general merchandise business, which includes clothing, which fell 4.3% in the half year and 1.8% in the second quarter. Continuing pressure on consumers' disposable income remains a concern as the retailer enters the all-important Christmas period. Unlike some rivals, M&S does not have a material online food proposition. The M&S brand is considered to have relied on an ageing customer base for some time. The group is attempting to excite younger fashion orientated consumers, a move which could impact its more traditional customer base. The general merchandise business in M&S, which includes clothing, has been under pressure. Recent senior management changes carry an element of disruption.

Financial Highlights: M&S reported a profit before tax and one-off items of £297 million in the 26 weeks to 29 September, down from £307 million a year earlier. Overall, group sales for the half year were up 0.9% at £4.7 billion. The board maintained an interim dividend payment of 6.2p per share. Net debt was reported at £2.6 billion at 29 September

Half year results: A cautious outlook persists at Marks & Spencer. Despite posting profits towards the upper end of expectations, M&S remains a work in progress. The revitalisation of the brand and the new multi-channel strategy are both showing some promising signs, the food offering remains popular and, from an investment perspective, the dividend yield of 4.3% is an attraction. Meanwhile, the company reported being well-positioned for its highly important Christmas season. Set against this were the recent merchandising issues, the continued pressure on margins and, of course, lower profits. Christmas aside, the company’s outlook comments were relatively downbeat, whilst recent management changes have been disruptive. The share price has been on something of a tear since the Q1 update, having risen 14% in the last three months, as compared to a 1% hike for the wider FTSE100. However, much of this relates to takeover speculation rather than the underlying performance of the business. There is still much to do in implementing the long-term turnaround plan

Company overview It was 1894 when Michael Marks met Tom Spencer and founded what is today a major UK retailer for clothes, food and home products. The group has over 1000 stores in more than 40 territories around the world, over 700 domestic and over 300 international. It is the largest clothing retailer in the United Kingdom, as well as being a niche player in the food sector focused on premium quality convenience foods. Marks and Spencer Group PLC is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

Positive Points: Profits materialized at the upper end of analyst forecasts. AB Sugar made significant advances during the year with revenue ahead by 25% and profit up 62% reflecting higher sugar production and strong commercial markets in the EU and Africa, and a continued focus on performance improvement in agriculture and processing. At Primark, operating profit on a constant currency basis was 17% higher than last year reflecting strong revenue growth. Revenue was 17% ahead of last year at constant exchange rates. This result was driven by an increase in retail selling space. Like-for-like or same store sales growth grew by 3% for the full year. By the financial year end, Primark had opened 19 new stores and added 0.9 million square feet of selling space bringing the total to 242 stores and 8.2 million square feet. Three new stores were opened in the UK, 11 in Iberia and five in northern continental Europe. At the Grocery business, management highlighted "good progress" made during the year in reducing the cost base. Group net debt at the year end was £224 million lower at £1.06 billion. A progressive dividend policy continues to be pursued. The total dividend for the year gone was increased by 15% to 28.5 pence.