I am happy with the way matters are moving here.

Group 4 Securicor PLC are we about to break out of the medium term trading range??..



Brokers by and large bullish on the stock....

G4S PLC

FORECASTS
2009 2010

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Charles Stanley
04-12-09 BUY

Investec Securities
04-12-09 HOLD 394.97 19.34 7.07 413.51 20.06 7.78

Panmure Gordon
04-12-09 BUY 380.01 18.72 7.30 421.69 20.91 8.20

Seymour Pierce
20-11-09 BUY 409.70 20.20 7.30 424.70 20.90 8.00

Evolution Securities Ltd
09-11-09 NEUT 400.00 19.80 7.30 422.00 20.90 7.70

Eden Group
03-09-09 BUY

ABN AMRO
27-07-09 BUY 413.95 19.92 7.65 446.51 21.43 8.24

Collins Stewart
04-06-09 BUY

2009 2010
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p
)
Consensus 397.08 19.57 7.24 420.34 20.90 7.89
1 Month Change -2.90 -0.14 -0.08 1.61 -0.08 -0.23
3 Month Change -2.81 -0.18 -0.08 1.85 -0.16 -0.25


GROWTH
2008 (A) 2009 (E) 2010 (E)

Norm. EPS 30.01% 45.45% 6.80%
DPS 21.20% 29.29% 8.98%

INVESTMENT RATIOS
2008 (A) 2009 (E) 2010 (E)

EBITDA 520.90m 630.60m 652.92m

EBIT 337.00m m m

Dividend Yield 2.23% 2.88% 3.14%

Dividend Cover 2.40x 2.70x 2.65x

PER 18.68x 12.84x 12.02x

PEG 0.62f 0.28f 1.77f

Net Asset Value PS -77.16p 112.21p 124.81p

Very impressive...

G4S PLC

FORECASTS
2009 2010

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Panmure Gordon
02-12-09 BUY 380.01 18.72 7.30 421.69 20.91 8.20

Investec Securities
01-12-09 HOLD 394.97 19.34 7.07 413.51 20.06 7.78

Charles Stanley
20-11-09 BUY

Seymour Pierce
20-11-09 BUY 409.70 20.20 7.30 424.70 20.90 8.00

Evolution Securities Ltd
09-11-09 NEUT 400.00 19.80 7.30 422.00 20.90 7.70

Eden Group
03-09-09 BUY

ABN AMRO
27-07-09 BUY 413.95 19.92 7.65 446.51 21.43 8.24

Collins Stewart
04-06-09 BUY

2009 2010
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 397.09 19.58 7.24 420.36 20.90 7.89
1 Month Change -2.89 -0.13 -0.08 1.62 -0.08 -0.23
3 Month Change -2.79 -0.17 -0.08 1.87 -0.16 -0.25


GROWTH
2008 (A) 2009 (E) 2010 (E)

Norm. EPS 30.01% 45.53% 6.74%
DPS 21.20% 29.29% 8.98%

INVESTMENT RATIOS
2008 (A) 2009 (E) 2010 (E)

EBITDA 520.90m 630.65m 652.96m

EBIT 337.00m m m

Dividend Yield 2.19% 2.83% 3.08%

Dividend Cover 2.40x 2.70x 2.65x

PER 19.03x 13.08x 12.25x

PEG 0.63f 0.29f 1.82f

Net Asset Value PS -77.16p 112.21p 124.81p

A stingy P/E of kust over 12 going into 2010

next move 300p, a quality share.

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 GBP3,761 million (2010: GBP3,575m)
* Organic turnover growth* of 5% (2010: 2%)
* PBITA* up 3% to GBP239 million (2010: GBP233m)
* 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


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 GBP200 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."

G4S in 5.2bn merger

StockMarketWire.com

Security firm G4S has announced a 5.2 billion deal which it says will create the 'world's largest integrated security and facilities services group'.

The company announced the acquisition of ISS A/S for an enterprise value of around 5.2 billion. G4S also announced a 7 for 6 rights issue at 122p to raise approximately 2 billion.

The group put forward the following rationale for the deal saying it would:

* Create a global leader in integrated security and facilities services combining G4S's 2010 revenue of 7,397 million and ISS's 2010 revenue of 8,522 million * Accelerate delivery of G4S's strategy to provide integrated facilities services ("IFS") * Provide significant growth opportunities and an estimated 100 million of annual pre-tax cost savings by 2014 * Lead to an investment of 20 million per year by 2014 in creating service excellence centres to share best practice across the enlarged group * Be a financially compelling transaction expected to deliver, within three years: * double digit post-tax ROIC * double digit EPS accretion * no PBITA margin dilution * Be funded in a manner to allow G4S to retain a BBB (or equivalent) credit rating

It added that: 'The combination of G4S and ISS creates the world's largest integrated security and facilities services company, by revenue, profit, countries of operation and number of employees.'

G4S's chief executive officer, Nick Buckles, said: 'We are excited to announce the acquisition of ISS to create the world's largest integrated security and facilities services group. Since G4S was created in 2004, we have grown our business significantly and have expanded our service offering beyond our traditional security heritage into much broader areas of facilities services and outsourcing to meet growing customer needs. We believe this acquisition will transform our business, significantly accelerate the delivery of our solutions strategy and create substantial value for shareholders.'

'G4S and ISS have very similar cultures and strategic ambitions as well as a strong, shared vision for providing service excellence to customers across the security and facilities services spectrum. The acquisition will also provide significant opportunities for staff at all levels to develop and broaden their skills into complementary areas, as part of a team of more than 1 million G4S employees."

Interim Management Statement.


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

Acquisitions & Divestments
During the first nine months of the year, G4S has invested 38m in deferred
consideration in respect of prior year acquisitions and 38m in capability-
building acquisitions such as surveillance, fraud, intelligence and
investigations services, offender monitoring technology and coin management
services.

Financial position
Our financial position continues to be strong and we remain on track to meet our
cash conversion target of 85% of PBITA for the full year.

what a fantastic drop in price - this is great news - fantastic buy in for day trade and beyond - yeeeeeeeeeeeehaaaaaaaaaaaaaaaaaaaaaaaaa

auction lol

now it gets interesting!

stop losses being triggered big time

what a bargain!!

trend heading towards bounce

Just had a dabble @221.67

gl skinny - it would be rude not to!!

auto trades flying through and being mopped up

lol when the dust settles people will realise they have got a 5.2billion additional acquisition in at a cost of a 2billion rights issue - now unless i am thick that is good business even if ri @ 122 - this was a strategic necessity - unfortuhately many stop loss casualties on the way

but they can buy back when they catch up

7 for 6 @ 122 do me fine - got to be in it to get it!! lol

bouncing a bit now

at last people are waking up - sp heading north - blimey that took some time! gla

skinny - kerrrrrrrrchinnnnnnnnnnnnnnnnnnggggggggggggggggggg

gl

auction

today better!!!

well chuffed - what a result today - yeeeeeeeeeeeeeeehaaaaaaaaaaaaaaa

skinny did you sell today or still hanging on - gl

I had a limit in which didn't get hit - so I'm still in.

Graham Ruddick, 6:16, Wednesday 19 October 2011

The chief executive of G4S (Other OTC: GFSZF.PK - news) will fly to America on Wednesday in an attempt to secure backing from key shareholders after City analysts warned his 5.2bn deal to buy ISS is at risk of being voted down.

On Tuesday, G4S was hit by a string of downgrades as analysts expressed concern at the amount of debt the security group will assume, how it will manage 1.2m staff, and why the group, based in Crawley, West Sussex, is moving away from its strength in security.

Analysts at Citi raised the prospect of G4S shareholders rejecting the deal and the 2bn rights issue which will finance it, upgrading their rating on the company partly because the acquisition could collapse.

Nick Buckles, the chief executive of G4S, is understood to be travelling to the US to meet key investors such as Harris Associates, BlackRock (NYSE: BLK - news) and Marathon Asset Management, who are top 10 shareholders.

The leading investors in G4S were quiet on the deal on Tuesday but shares in the group recovered 9.8pc, or 21.6p, to 241p. G4S shares crashed by 22pc on Monday after the company announced it wanted to buy the cleaning and catering provider ISS.

Copenhagen-based ISS is owned by EQT Partners, the private equity arm of Sweden's Wallenberg family, and GS Capital Partners, Goldman Sach's investment division. G4S will pay the investors 1.5bn in cash and shares, leaving them with a stake of 11.3pc in the enlarged company, and assume 3.7bn of debt.

The prospectus for the deal shows ISS has lost money on a pre-tax level for at least the past three years, despite revenues of more than 7bn, because of financing costs on the debt.

Citi said it was basing its 300p target price on G4S not acquiring ISS and adding "75pc of attending votes at the November (Stuttgart: A0Z24E - news) 2 emergency general meeting [EGM] are required to approve the 390m G4S share issue to ISS's vendors. With EGM attendance unlikely to reach 100pc, perhaps only 15pc to 20pc of outstanding equity would be needed to block the transaction."

David Brockton, at Espirito Santo, warned: "From an opportunity/cost perspective, the acquisition of ISS will limit the group's ability to deploy capital to accelerate growth in other business areas, with faster underlying growth eg emerging market security. As such, we are yet to be convinced that the end justifies the means."

hi dc - yep i have heard that today too but others at citi disagree - depends who one asks really - bit of a debate going on

the yes camp at citi are citing synergies etc - the no camp the obvious in the box stuff

its up in the air from here!!! monitoring closely

gl skinny

may well get voted down though so may need to put my gambling hat back on lol! buckles needs to sell this well or .....

Good luck gibby and skinny, Just keep an eye and i am sure you will not go wrong. dc

Just closed 242.6

nice one well done skinny

More news

G4S shareholder Parvus says 5.2bn ISS deal is 'dangerous'


Graham Ruddick, 20:58, Thursday 20 October 2011

One of the largest shareholders in G4S (Other OTC: GFSZF.PK - news) has said it will vote against the 5.2bn acquisition of cleaning group ISS, calling the deal "dangerous".

London-based hedge fund Parvus Asset Management is the third-largest shareholder in security group G4S with 3.7pc and is the first investor to publicly express its opposition to the deal.

Parvus founder Edoardo Mercadante told The Telegraph on Thursday that the 5.2bn deal "jeopardises the future health of the company" and "doesn't make sense" given G4S's success in security since founding in 2004.

Shareholders will vote on the deal on November (Stuttgart: A0Z24E - news) 2, but G4S already appears to be facing a rebellion from at least one investor. A second top-20 shareholder said the acquisition of ISS is "absurd" and "totally unnecessary".

G4S needs 75pc of voters to support the deal or it will collapse. Nick Buckles, chief executive, believes buying ISS will allow G4S to offer a wide range of services to customers. The company is financing the deal with a 2bn rights issue and 3.7bn of new debt facilities.

However, Mr Mercadante said: "I don't think they need to go into cleaning and basic services with such leverage and a big step."

He said the acquisition was a "big strategic change" given that Mr Buckles had previously spoken about expanding G4S into higher-margin specialist security and emerging markets. It is understood Mr Buckles instead decided to turn G4S into a provider of integrated services after a strategic review by consultants Bain earlier this year.

Parvus has been invested in G4S through contracts for difference since April 2010. These were swapped into shares on Wednesday. The number of hedge funds with a position in G4S is expected to rise because of the sharp fall in the share price since the deal was announced and the possibility of the deal not completing.

In a note on Thursday, analysts at Collins Stewart (Other OTC: COLLF.PK - news) said the ISS deal "destroys significant shareholder value" in G4S. They were using their analysis service Quest, which calculates the value of businesses on the basis of cashflow.

yep dc - they are ganging up lol

this is the reason blue here today in the end - likely up again tomorrow prob by more - but also dont forget the friday profit takers lol

gla

Just thought it may help. Good luck. dc

cheers always like info - hope you have a good one too

Has UK security giant G4S lost the plot?



Graham Ruddick, 21:46, Saturday 22 October 2011

When City analysts and leading institutions gathered in May to hear from Nick Buckles, little did they know that plans to radically reshape G4S (Other OTC: GFSZF.PK - news) were already under way.

Buckles was in credit with the City. The chief executive had just delivered a sixth consecutive year of revenue, profit and dividend growth. Since the merger of Securicor and Group 4 Falck in 2004, the security group had been one of the FTSE's star performers.

At the helm since 2005, Buckles explained to his audience at the company's annual capital markets day how it was dealing with government spending cuts and how G4S would approach acquisitions.

After a quiet period following the recession, the 50-year-old said, the highly acquistive G4S was ready to spend more than 200m a year on targets.

A slide in the presentation showed that when expanding into new geographical markets, G4S was focused on four areas manned guarding, cash services, monitoring and facilities management.

Summarising the position, Buckles said: "In terms of strategy, we are still very much focused on being a secure solutions group on outsourcing of strategic security and risk processes."

Those present did not appear to have considered his comments on facilities management deals particularly important. Nor were there any questions on whether G4S was interested in buying ISS, the giant European cleaning and facilities management firm put up for sale by its private equity owners after a failed float at the start of the year.

After all, G4S ran prisons, guarded cash and will provide security for the 2012 Olympics so why would it buy a cleaning and catering company? But just five months on that is exactly what the company has done.

Last Monday, Buckles announced G4S had agreed to buy ISS for 5.2bn from the private equity arm of Sweden's Wallenberg family and GS Capital Partners, the private equity unit of Goldman Sachs (NYSE: GS - news) .

A total of 1.5bn would be paid to the owners in cash and shares, leaving them with a 11.3pc stake in G4S. The deal is to be financed by a deeply-discounted 2bn rights issue and a new 3.7bn debt facility.

The City was shocked. Although the biggest 12 shareholders in G4S had apparently been told of the deal on the previous Thursday and Friday, shares in the company slumped 22pc by the end of the day.

"The acquisition of ISS represents a shift away from G4S's core strategy formulated two-and-a-half years ago," analysts at Collins Stewart (Other OTC: COLLF.PK - news) said, adding it destroys shareholder value.

G4S shareholders soon went public with their own concerns. Parvus, a London-based hedge fund, said the deal was "dangerous", while a second top 20 shareholder called it "absurd" and "totally unnecessary".

Investors who have enjoyed years of growth through G4S's success in security were being asked to bet substantial sums on sectors where the company has no substantial track record. And they were uncomfortable with it.

For the deal to succeed, G4S needs 75pc of voting shareholders to support the deal at a meeting on November (Stuttgart: A0Z24E - news) 2, and advisers close to ISS and G4S are, in private, seriously concerned it could fall apart.

Friday's news that keys capable of opening every door at Birmingham Prison which G4S has run since October 1 had been lost topped off a bad week for the company.

But this weekend, Buckles has had far more on his mind, as he held further talks with shareholders to try to convince them of the merits of the deal.

Having flown to the US last Wednesday for talks with US investors, he will tomorrow travel to Copenhagen to meet Scandinavian shareholders inherited from the Group 4 merger. A number of leading UK investors are also understood to have demanded face-to-face meetings with him.

One top 20 UK shareholder told The Sunday Telegraph there was "genuine hurt" among investors that they had been approached about the deal only at the tail-end of the process. "We are the owners of the business, not the investment banks," said the investor. "They trusted the investment bankers more than the shareholders and that is stupid."

The shareholder said the vote feels "reasonably close" at the moment and the US shareholders will "find this difficult" to accept because of the size of the rights issue.

He added: "I think it will be a bloody hard uphill struggle from here."

Buckles will be hoping the second week of talks progresses more successfully than the first, as echoes of Prudential (LSE: PRU.L - news) 's failed $35.5bn (22.2bn) bid last year for AIA which faltered due to poor communication and faltering shareholder support became all the more apparent.

Buckles' problem is convincing investors that rather than an opportunistic strategic U-turn, ISS is fundamental to G4S succeeding in the markets of the future. Critics of the deal do not understand why ISS is worth increasing G4S's leverage to more than three times earnings before interest, tax, depreciation and amortisation (Ebitda), increasing its exposure to Western Europe (Chicago Options: ^REURUSD - news) and reducing security revenues from 82pc of the business to 42pc.

"ISS is more of an opportunistic purchase that runs slightly counter to our expectation of the group's prior strategic ambition," said David Brockton at Espirito Santo.

Edoardo Mercadante, the founder of Parvus, added: "I have never been exposed to a company with a trebling of the share count."

He claims the 100m of annual pre-tax savings by 2014 are "peanuts" given the size of the deal and the numbers only stack up because G4S will be able to lower ISS's tax rate from 32pc to below 26pc.

Then there is the challenge of integrating 1.2m staff across more than 100 countries, an unprecedented feat, even before taking into account that ISS has made 600 acquisitions of its own over the past decade. Buckles accepts this is the "highest risk" in the acquisition. However, for him, ISS is worth it.

Last Monday's announcement was the culmination of work that began in February for G4S. The board commissioned consultants Bain to conduct a review of the company and its markets which was presented to it in May.

Although the findings remain private, they are thought to say the future of support services will revolve around offering integrated contracts to customers, becoming a one-stop-shop for everything from cleaning to security.

With ISS in play after its $2.4bn float was pulled in January, talks between the two sides began firmly in June. A source close to the deal said: "This is a multi-year acceleration of the strategy. In two or three years this transaction will look completely obvious."

The source also dismissed criticism that the deal could hinder G4S's drive into emerging markets. They claim Buckles has reiterated his target of securing 50pc of revenues from emerging markets by 2015 and that the deal will bring "revenue synergies". Nonetheless, this was not a deal that shareholders had pushed for, nor expected.

G4S's advisers claim leading investors apart from Parvus have shown "every sign" of being supportive.

But with Buckles' neck firmly on the line, the next seven days will be crucial if he is to gain enough momentum for what he called this "market changing" deal to come to fruition

The big question haunting the G4S mega-deal

Kamal Ahmed, 21:46, Saturday 22 October 2011

If you owned a Rolls-Royce, what would it take to persuade you to put some go-faster stripes down the side and an extra engine in the boot? That must be the question many investors in G4S are asking themselves.

G4S is planning to sell off large swathes of ISS in France if its controversial 5.2bn deal for the cleaning and catering group is approved by shareholders.

G4S says held supportive meetings with shareholder
15:30, Sunday 23 October 2011

LONDON (Reuters) said it had received positive feedback from shareholders over its proposed 5.2 billion pounds bid for ISS and Chief Executive Nick Buckles expressed surprise over the fall in the company's share price.

"We have had some good supportive meetings and are working hard to talk with investors about the rationale and significant benefits and our belief in this transaction," a G4S spokesman told Reuters on Sunday.

Shares in G4S lost over 20 percent of their value on Monday after it said it would buy the Danish support services company -- partly due to the dilutive impact of a proposed 2 billion pounds rights issue to help fund the deal.

In an interview with the Sunday Times, G4S's Chief Executive Nick Buckles said the share price reaction had been a shock.

"I knew the size and scale of the deal would surprise the market but we thought it would be received really positively," he said.

Since the offer was announced, G4S, which is the world's biggest security company, has faced a backlash from some shareholders who have objected to the strategy and financing behind the deal.

Aside from balking at the size of the rights issue, the biggest equity fundraising in Britain since a 3.4 billions pound cash call by Standard Chartered (Xetra: 859123 - news) last November (Stuttgart: A0Z24E - news) , some shareholders have raised concerns over G4S moving away from its security services roots into areas such as cleaning and catering.

Buckles told the Sunday Times he had "pre-briefed" key shareholders the week before the deal was announced and still believes he has their approval.

"I just think people felt they had to take a view very quickly on Monday, but this is one to digest slowly. It's early days. We still have investors to see," he said.

The Sunday Times also reported that Institutional Shareholder Services, a governance body that advises 1,700 large investors, had recommended shareholders vote against the deal at a general meeting on November 2.

The shareholder body said the deal was a departure from G4S's strategy to focus on small deals in emerging markets and raised concerns about integrating the two big companies and the level of debt that G4S would be left with.

G4S told Reuters on Sunday it had not held meetings with Institutional Shareholder Services and therefore had not been able to brief them on strategy.

"They have not met the company, they have not heard their strategy and there are factual inaccuracies in the report," the G4S spokesman said, adding that the company had previously said it would look at large and transformational deals.

Investors told to block G4S Danish deal


James Hurley, 20:26, Sunday 23 October 2011

A major investors' advisory group is the latest dissenting voice to join growing shareholder opposition to G4S (Other OTC: GFSZF.PK - news) 's planned 5.2bn takeover of Danish cleaning and catering company ISS.

US-based Institutional Shareholder Services, which advises 1,700 large investors, has voiced concerns that the deal would represent a departure from the security giant's strategy of focusing on small tactical deals in emerging markets, as previously set out by G4S chief executive Nick Buckles. The governance body also highlighted the risks of integrating 1.1m staff across 100 countries and the debt burden the deal would put on G4S's balance sheet

good stuff dc - i am told one of the main concerns is the fact t/o means that gfs will strategically be concentrating on the west rather than rest of the world - this has investors concerned with current econ. climate - investor also annoyed they will be taking on debt and moving to non core areas - i personally looking forward to tomorrow here as will be very interesting imo - gl

G4S investors still concerned over 5.2bn Iss deal


Danish investors in security group G4S (Other OTC: GFSZF.PK - news) remain concerned about its proposed 5.2bn acquisition of ISS despite the security firm's chief executive Nick Buckles flying out for crunch talks.

Mr Buckles gave a presentation to investors and analysts on Monday about the controversial deal, which is being funded by a 2bn rights issue and new 3.7bn debt facility.

BankInvest, which owns roughly 0.25pc of G4S, said it has already cast its proxy vote against the deal, while Carnegie Asset Management and Nykredit Asset Management are also opposing the proposal, according to reports in Denmark. Carnegie has said the strategy behind the deal is "hard to understand".

Danish investors hold more than 10pc in G4S, which was created by the merger of Securicor and Scandinavian Group 4 Falck in 2004. G4S needs 75pc of voting shareholders to support the deal in a meeting next week but the deal is in doubt because of concerns G4S will struggle to integrate ISS and will be left with a cumbersome debt pile.

Analysts at Scandinavian bank Enskilda said on Tuesday they were "sceptical" about the impact ISS will have on G4S's margins.

A spokesman for G4S said the company has held "constructive" meetings with shareholders.

G4S plc UK DK
Statement re agreement not to proceed with acqu...





1 November 2011

G4S AND FS INVEST AGREE NOT TO PROCEED WITH
ACQUISITION OF ISS AND RELATED RIGHTS ISSUE

G4S plc ("G4S") announces that G4S and FS Invest II S..l. ("FS Invest") have
agreed to terminate the share purchase agreement ("SPA") pursuant to which G4S
was to acquire ISS A/S ("ISS") from FS Invest (the "Acquisition"). Accordingly,
the board of directors of G4S (the "Board") will not put any resolutions to the
shareholder meeting convened for 2 November 2011 and will not be proceeding with
the rights issue or other financing required for the Acquisition.

Alf Duch-Pedersen, Chairman of G4S, said:

"We believe that developing our business towards an enhanced security and
integrated facilities services model is the way forward in the longer term and
we saw ISS as an excellent opportunity to achieve this aim. However, following
the announcement of the Acquisition, shareholders have raised concerns
particularly over its scale and perceived complexity against the backdrop of
current macro-economic uncertainty.

We consulted our leading shareholders ahead of announcing the transaction, and
based on the feedback received, felt confident to launch the deal. We have now
discussed the merits of this combination with a significantly larger number of
our shareholders and whilst they continue to express their overwhelming support
for the standalone G4S business and its management, the Board has listened
carefully to concerns raised by shareholders regarding the Acquisition and has
concluded that in the circumstances it is inappropriate to proceed.

G4S is a successful and well managed business. It has delivered year on year
earnings and dividend growth since the group was created in 2004 from the merger
of Securicor and Group 4 Falck. G4S has consistently generated returns on
invested capital well above its cost of capital, and delivered average
shareholder returns of 13.3% per year since the start of 2005.

The Board and management of G4S remain focused on continuing to generate
sustainable shareholder value and driving business success both organically and
through targeted acquisitions."

Nick Buckles, Chief Executive of G4S, said:

"We are obviously disappointed that we have not been able to complete this
transaction. We felt strongly that the combination of G4S and ISS would create
a market-leading integrated security and facilities services company which would
be well placed to meet the growing needs of customers and deliver significant
investment returns at the same time.

However, we respect the importance of shareholders' views and, on the basis of
feedback received since the transaction was announced, we have decided not to
proceed.

Our strategy will continue to focus on providing higher value, integrated
security solutions to our customers and leveraging our expertise in key sectors,
geographies and service lines. We will continue to acquire businesses which add
capability to G4S to help drive the business forward.

The G4S business continues to develop positively with organic growth of 5% in
the first nine months of 2011."

The Acquisition, together with the rights issue, was conditional, inter alia, on
securing 75% shareholder support at a G4S shareholder meeting. There are no
break fees payable pursuant to the termination of the SPA. The majority of the
fees and costs to be paid in connection with the Acquisition and the rights
issue was only payable if the Acquisition completed. However certain of these
fees and costs, amounting to approximately 50 million, will be incurred by G4S
in any event. These fees relate principally to commitment fees in connection
with the financing of the Acquisition, but also include the net costs of
derivative hedging instruments entered into to hedge the foreign exchange risk
associated with raising funds in sterling to effect a purchase in Danish Krone
and up to 2 million payable to ISS's auditors in relation to certain work
carried out in respect of the Acquisition. These fees and costs will be treated
as exceptional items in the G4S accounts for the year ended 31 December 2011.

Board of directors has just cost shareholders 50m should they be fired?

Graham Ruddick, 18:16, Tuesday 1 November 2011

Nick Buckles knew his "market-changing" 5.2bn takeover of ISS was in trouble on the same day the deal was announced.

The G4S chief executive revealed the proposed acquisition on the morning of Monday, October 17. Buckles thought he had the backing of his leading shareholders after "positive" feedback from pre-marketing. Several institutions had even agreed to sub-underwrite the 2bn rights issue that would finance the deal, he was told.

However, when G4S (Other OTC: GFSZF.PK - news) shares slumped by 22pc it was clear all was not well. Advisers to the company claimed it was simply a technical repricing to reflect the deeply discounted rights issue. In reality, the City was in shock. "It became an uphill struggle from there," Buckles said on Tuesday.

For many investors, the security group had been a safe haven stock that had outperformed the market even during the recession. However, spending 5.2bn on a cleaning and catering group with 2bn of new shareholder money and 3.7bn of debt would create a radically different company.

Not only would G4S no longer be focused on security, but it would become one of the most highly leveraged companies in the FTSE 100 (Euronext: VFTSE.NX - news) . That was not the G4S (Dusseldorf: GHN.DU - news) that investors bought into.

During pre-marketing on the previous Thursday and Friday, Buckles tried to convince his 12 largest investors that G4S needed to do the deal because its customers increasingly wanted a wider range of services from its contractors.

However, these "briefings" lasted less than an hour and some were held over the phone. The shareholders say they were simply given a preview of an announcement that was ready to be made, and did not have enough time to digest the acquisition. Although many would need time to establish their opposition to the deal, they were already frustrated, surprised and uncomfortable at the way it had been presented.

One top 20 shareholder said: "It's like buying a flat for your girlfriend and then asking whether she likes it. Even though she will be paying for it."

Another said: "We are the owners of the business, not the investment banks. They trusted the investment bankers more than the shareholders and that is stupid."

The drop in the share price revealed the concerns but also spooked the institutions who had been willing to support it. Opposition became widespread. As well as the surprise strategic shift amid economic uncertainty, investors had doubts about the price being paid to the private equity owners of ISS and whether G4S could integrate a business that would have 1.2m employees around the world.

Privately and publicly, Kames Capital is the only leading shareholder to have confirmed it would have supported the deal. By the time G4S cancelled the shareholder vote on the deal on Tuesday, it was facing a landslide defeat.

"We clearly regret that we misread the market's appetite for deals of this scale," Buckles sad.

A top five City shareholder in G4S says Buckles should have approached it earlier about the deal and it would have agreed to not trade shares in the company. The investor would have urged Buckles to "revisit" the proposals before they were even made public, potentially saving G4S the embarrassment of the deal unravelling in front of the City. "It is not impossible that they could buy bits of ISS. Some bits of the business are very good. But the size and totality of it [the deal] was the problem," they added.

Buckles claims he was advised that approaching the shareholders just days before the announcement was "best practice". Meanwhile, the advisers to G4S Deutsche Bank, Greenhill (Xetra: A0B9GF - news) and RBS (LSE: RBS.L - news) are frustrated that institutions backtracked from their positive feedback during pre-marketing. A G4S source claims "several institutions" handed over letters saying they would sub-underwrite the rights issue. "There is something to learn for everyone from this," the source said.

Those lessons add to the ones garnered from the failed Prudential (LSE: PRU.L - news) and AIA deal last year. G4S investors have again demonstrated that management and shareholders must engage properly, particularly if the investors are being asked to stump up fresh cash.

However, it is doubtful that Buckles could ever have persuaded shareholders against their view that the ISS deal was an unproven strategic shift that asked too much of them. His strong track record at G4S was no match for the scepticism of shareholders, which was exacerbated by volatile global stock markets. The one consolation for Buckles is that his prior track record is likely to ensure he keeps his job.

ahhhh - buckles made a bit of a hash of it all!! apparently today he said he considered his job was safe - the other funny thing in this debacle was that iss actually ended up voting against iss i.e. itself LOL! still opportunity to make some good splosh greatly received thanks bucky - and this news obviously will not do gfs any harm

G4S ticked up 3.6 to 266.4p as Credit Suiss upgraded the stock to "outperform" with a 310p price target. "We expect organic growth will accelerate to 9pc in 2012," said Credit Suisse.

..London 2012 Olympics: G4S interviewing 84,000 candidates

By Graham Ruddick | Telegraph – 2 hours 2 minutes ago


......
G4S (Other OTC: GFSZF.PK - news) says it is interviewing 84,000 candidates for its Olympic security contract.

The FTSE 100 security group is looking to hire around 10,000 temporary workers, with 2,500 already in place, to provide security at the Olympic Park in London during the Games this week.

The contract is worth around £200m to G4S, which will need to vet and train all the workers before London 2012.

Nick Buckles, chief executive, said: "This is a very large undertaking. It's a tough challenge but we have a strong management team in place."

The Olympic contract will boost organic revenue growth for G4S by 2pc to 3pc this year. In a trading update yesterday, Mr Buckles said G4S had grown revenues by 6.7pc in the first quarter of 2012 aided by the Olympics and 11pc growth in developing markets.

However, despite the revenue growth, profits for G4S will only be at "similar levels" to 2011. This is because margins have shrank due to spending cuts in the US and as G4S has won new UK contracts, such as providing security for Royal Bank of Scotland (LSE: RBS.L - news) branches, with higher initial costs.

Mr Buckles said he was "pleased" with the company's increase in revenues and said margins should improve in the second half of the year.

He added: "Based on recent contract awards, outsourcing trends and the group's bid pipeline, the organic growth rate is expected to continue to improve during 2012."

Shares in G4S rose 9.2 to 276p.

..

A bit of a no brainer if you were quick this morning.

260 would be nice!

And there it is! :-)

Statement regarding the Olympic Games Security Contract

I might let this run a bit longer.

G4S Olympics staff failed to arrive for security work

Only 17 of an expected 56 G4S staff turned up for work at an Olympic team hotel in Salford, the chairman of the Greater Manchester Police Authority has said.

As a result, the force has pulled in front-line officers to provide security, Paul Murphy revealed.

Home Secretary Theresa May will answer questions about G4S problems later.

Parliament Live

Little hope if Connelly new chairman does not stand by Buttons.
After all Connelly's old firm Deloittes did a review of the contract and gave advice. One assumes Connelly knew this before taking up appointment.

Buttons needs support at a time like this and Connelly should offer positive help and talk it up. Perhaps Agius could help here! If Buttons has to go then Connelly must too.

Stopped out @245 +36 - a bit surprised this hasn't fallen further this morning.

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 GBP35m - GBP50m.

I see these are creeping up again - any views on whether when the dust of the Olympic "euphoria" is over, these will tank again?

INVESTMENT EXTRA: Can G4S get back into the game after Olympic security fiasco?


http://www.thisismoney.co.uk/money/markets/article-2183347/INVESTMENT-EXTRA-Can-G4S-game-Olympic-security-fiasco.html

Thinking the same skinny. Trouble is the brand name has been damaged. For me there are better companies about.Will pass on this one. Could take a while to recover.

UK's G4S makes military donation after Games failure

LONDON | Mon Aug 13, 2012 4:31am BST

(Reuters) - Security firm G4S will donate 2.5 million pounds ($3.9 million) to British military sports and welfare organisations to thank troops who stepped in to secure Olympic venues after it failed to provide enough guards, the government said on Monday.

Media coverage ahead of the London 2012 Games was dominated by G4S's admission it could not supply all of a promised 10,400 guards for the two-week sporting festival, which closed on Sunday.

An additional 4,700 military personnel were mobilised to join 13,500 troops already earmarked for venue security after G4S's last-minute admission it had problems recruiting sufficient staff.

Half Yearly Report

Excluding the Olympic Games contract, sales up 5.8% and improved organic growth of 5.1%. Adjusted EPS maintained at 9.8p

Organic growth of 10% in developing markets with revenue of £1,191m (31% of group total and targeting 50% by 2019)

Group margin excluding exceptional items is lower at 6.0% (6.2% excluding the Olympics Games revenue) due to the challenging US government market and UK contract phasing

On track to achieve annual cash conversion target of 85%

Olympic and Paralympic Games contract loss of £50m provided for as an exceptional item in H1

Contract review underway and expected to be completed during second half of September

Continued focus on business improvement


Service excellence centres established for all core services: manned security, cash solutions and care & justice services - part of a two year programme to support gross margins and profit improvement initiatives

Restructuring leading to a headcount reduction of 1,100 positions and £30m annualised savings, of which related costs of £24m have been taken as an exceptional item in H1, a large proportion of which relate to Continental Europe. Up to £10m further costs are expected in H2

Security remains core to global strategy and continues to provide growth opportunities

Strong global contract pipeline of £3.8bn per annum across a diverse range of sectors including the strongest visible pipeline in US commercial sector on record

Down trend back in place.

MPs call on G4S to forego £57m fee after Olympics failure

G4S should forego its £57m management fee after failing to supply the required number of Olympics security staff, a committee of MPs has said.

It should also compensate people who were accredited for Olympics work with the firm but not given any shifts, the Home Affairs Committee argued in a report on Olympics security.

The firm's Olympics contract was worth £237m, including the management fee.

Company boss Nick Buckles has said he expects G4S to be paid in full.

Blah blah :- REVIEW OF LONDON OLYMPIC AND PARALYMPIC GAMES SECURITY CONTRACT

The key points can be summarised as follows:

The Olympic contract was unique in terms of scale and complexity, but notwithstanding this, the Company was capable of fulfilling the contract; the issue was in its delivery.

Although the Company recognised the unique and complex nature of the Olympic contract from an early stage, this was not properly reflected in its handling of the contract. The Company has management and other structures and processes that have proved highly effective in delivering the Company's regular business over many years but it did not recognise these structures and processes needed augmenting for the Olympic contract.

The monitoring and tracking of the security workforce, management information and the project management framework and practices were ineffective to address the scale, complexities and dependencies of the Olympic contract. Together this caused the failure of the Company to deliver the contract requirements in full and resulted in the identification of the key problems at a very late stage.

The successful execution of the Home Office/LOCOG contingency plan including deployment of additional military and police together with a substantial contribution from the thousands of G4S employees who worked alongside them, led to a safe and secure games with continuously positive ratings on venue security from games visitors.

The Board confirms that it is in the best interests of the Company and of all its stakeholders that Nick Buckles should remain Group CEO. Whilst the CEO has ultimate responsibility for the Company's performance, the Review did not identify significant shortcomings in his performance or serious failings attributable to him in connection with the Olympic contract.

The Board has accepted the resignations of David Taylor-Smith, Chief Operating Officer and Regional CEO - UK and Africa and of Ian Horseman Sewell, Managing Director, G4S Global Events.

Richard Morris, currently the Group Managing Director of G4S Care & Justice Services in the UK, has been appointed as the CEO, UK Region. Kim Challis, who currently runs a portfolio of UK commercial and Government businesses, will take on direct line management responsibility for all Government businesses in the UK as CEO, G4S Government and Outsourcing Solutions - a new role created to enhance our focus on this critically important area of our business.

The Group Executive will also be strengthened with the appointment of a Group Chief Operating Officer, who will work closely with the CEO, with responsibilities to include a specific focus on operational procedures, risk management and quality customer service and delivery. The Group COO role will be an external appointment.
The contract failings are largely specific to the Olympic contract. However, G4S will take a number of further actions, learning lessons from this contract, to ensure that best practices are applied across the entire business. Actions will include: more rigorous risk assessment for new contracts and improved contract take-on processes and project management. Board oversight will be enhanced including review and approval of contracts where annual revenues exceed £50m.

The Board will be strengthened by the addition of at least two new non-executive directors. The recruitment process is underway.

John Connolly, who joined G4S as Chairman on June 8, said:
"G4S has accepted responsibility for its failure to deliver fully on the Olympic contract.

We apologise for this and we thank the military and the police for the vital roles they played in ensuring the delivery of a safe and secure Games.

Our Review of the company's performance on this contract has been extremely thorough and, whilst the failures are largely specific to the very special nature of this contract, we will learn from mistakes made. We are taking actions in relation to both the management and governance of G4S to ensure we continue to deliver the highest standards of customer service and contract delivery across the Group."

G4S 'warned' over killer security guard Danny Fitzsimons

guard in Iraq just days before he murdered two colleagues, a BBC investigation has found.

Private security guard Paul McGuigan, from the Scottish Borders, was shot dead by Danny Fitzsimons in 2009 in Baghdad while on a protection contract.

Another man, Australian Darren Hoare, was also killed.

Tuesday November 6
• G4S will provide a trading update on the third quarter. It will be the company’s first opportunity to update the market on how the company is faring following the Olympics security fiasco which ultimately cost two of G4S’s senior management their jobs.

Interim Management Statement

Overview of the financial performance for the nine months to 30 September 2012
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 operating margin was lower compared to the same period in 2011.

G4S loses Wolds prison contract

Private security firm G4S has lost its contract to run Wolds prison in East Yorkshire and failed to win a number of other private jail contracts.

A report by HM Inspectorate of Prisons in August said HMP Wolds had "clear weaknesses", with poor behaviour and high levels of drug use among inmates.

G4S said it was "disappointed".

Statement re London 2012 Games Security Contract

G4S, the international secure outsourcing group, today announces that it has agreed a financial settlement with the London Organising Committee of the Olympic Games and Paralympic Games ("LOCOG") in respect of the provision of the security workforce for the London 2012 Olympic & Paralympic Games ("the Games").

The terms of the settlement mean that G4S will incur an overall loss on the contract of approximately £70 million. The group has also incurred additional costs of approximately £11 million, relating to charitable donations and external fees and a further £7 million relating to the cost of sponsorship and marketing. All of these costs will be taken in the 2012 accounts as an exceptional charge (£50 million having been provided for at the half year based on the previous contract loss estimate). The main difference between the previous estimate and the final settlement is an agreement to waive a larger proportion of the project management charge.

StockMarketWire.com
G4S, the international security solutions group, has decided to divest its US Government solutions business.

G4S Government Solutions provides security, fire protection, facilities management, training and mine clearance services to US Government organisations including the Departments of Energy, Homeland Security and Defence in addition to international organisations such as NATO and the United Nations, both within the United States and overseas.

It operates sensitive Government contracts requiring high level security clearances and is therefore managed under a proxy board structure in order to comply with US national security regulations. The company believes that an alternative parent would be able to create or add more value to the business than G4S because as a non-US parent, with restricted access to important commercial data, its ability to manage the business and share best practice is severely limited.

In 2012, G4S Government Solutions had annual revenues of around £400m.

The company will retain its highly-regarded US commercial security business which provides a broad range of security services and technology to commercial companies and Government departments at a Federal, State and local level, where high level security clearances are not required. The revenues of this business, combined with G4S' other ongoing US operations totalled around £1.2bn billion in 2012.

Houlihan Lokey has been appointed to manage the divestment process and it is expected that the transaction will be completed within the next six months, subject to all necessary approvals.

StockMarketWire.com
Security firm G4S said turnover increased by 5.5% to £7.297bn in the year to end-December, 8.1% at constant currency. Organic turnover growth was 6.9%.

PBITA was £516m up 6.0% at constant exchange rates excluding the Olympic Games contract and up 2.8% in total at actual rates. The PBITA margin was 7.1%.

Operating cash flow, excluding the Olympics contract, was £492 million in the period, representing 95% of PBITA. This exceeded the target of 85% through continual analysis of all aspects of the operating cash cycle to improve cash collections. Net cash invested in current year acquistions was £93 million. Net debt at the end of the period was £1,802 million (December 2012: £1,616 million) which was impacted by an Olympic Games related receivable of £75 million which was received in February 2013.

The board recommends a final dividend of 5.54p per share. This represents an increase of 8% on the final dividend for 2011. The interim dividend was 3.42p per share and the total dividend, if approved, will be 8.96p per share, representing an increase of 5% on the total dividend for 2011.

The group expects to continue to increase dividends broadly in line with normalised adjusted earnings.

Nick Buckles, CEO, commented: 'Our 2012 financial results reflect the significant exceptional costs associated with the Olympic contract and our overhead reduction programme together with the large impairment charge related to the discontinued US Government Solutions business.

'Despite these issues, the underlying business has performed well in 2012 with an acceleration in organic turnover growth to 7% and with margins holding at over 7%. The acceleration in organic growth was due largely to a number of new North American commercial and UK government contracts and continued strong growth in developing markets and was achieved despite continued economic challenges in Europe.

'Our developing markets business now accounts for a third of group revenues and continues to grow strongly and our recent acquisitions in Brazil, Vanguarda and Interativa, are performing well.

'The breadth of our portfolio in over 125 countries continues to present many new growth opportunities and we continue to see good opportunities for outsourcing in key sectors such as government, financial institutions, aviation, oil and gas, mining and ports. Our market leading businesses, broad customer base and £3.5bn per annum contract pipeline give us confidence in the outlook for the group.'

G4S's full-year results failed to please the market on Wednesday as headlines focused on the impact of one-offs, such as its failing at the London Olympics, but Panmure Gordon has reiterated its 'buy' rating and 320p target price for the security firm, saying that its underlying performance was strong.

"Overall while the shares have had a good run of late, we are likely to maintain a positive stance on the basis that the valuation remains undemanding particularly given the re-rating seen elsewhere in the outsourcing sector," the broker said.

StockMarketWire.com
Numis has moderated its recommendation on G4S (LON:GFS) to "add" from "buy" following the recent strong run on the share price. Shares in the company have increased in value by around 5 per cent in the past month and by nearly 20 per cent over the past three months. The City broker has increased its price target on the security firm to 340 pence per share (previously 315 pence). Separately, JP Morgan Cazenove reaffirmed its "overweight" rating with an unchanged price target of 345 pence per share. Broker Forecasts consensus data shows that three quarters of brokers have a "buy" (or equivalent) rating on the stock with only 10 per cent rating the shares as a "sell"

StockMarketWire.com
Anglo-Danish security group G4S said today that in the quarter to end-March, overall revenues compared to the same period last year, grew by 7.5% at constant exchange rates and by 7.7% at actual exchange rates.

Group operating margin was around 0.6% lower compared to the same period in 2012.

Overall organic growth was encouraging at 6%, with 12% in developing markets and 4% in developed markets

⬢In secure solutions, organic growth was 6%, helped by a continued strong performance in developing markets and UK government

⬢In cash solutions, organic growth was 3% overall. Developed markets declined 1% and developing markets grew 14%.

Overall, the group margin was down around 0.6% due principally to continued challenging economic and trading conditions in Continental Europe, ongoing pricing pressure in the UK and Ireland cash solutions businesses, the mix effect of new contracts starting up in UK Government and the impact of a £6m charge in the African region relating mainly to the write-off of receivables. The proposed closure of 30 prisons and other cost reductions by the Netherlands Ministry of Justice will have a significant negative impact on the group's Dutch business which provides staff to the prisons. For all of these reasons, and despite ongoing business improvement plans, the first quarter margin trends are expected to continue for the full year.

During the first three months of the year, the group invested £5m in capability-building acquisitions such as the Deposita cash solutions business in South Africa. The process for the sale of the US Government Solutions business is underway and the group now intends to include its regulated secure solutions business, which provides services to regulated markets such as nuclear power, in the sale of the US Government Solutions business. RSS had revenues of around £100m and profits of around £6m in 2012.

The group had committed credit facilities of £1,100m, of which £760m was unutilised at 31 March.

The business has continued to achieve good underlying organic growth despite continuing challenging macro-economic conditions in Europe.

The North American commercial businesses had an exceptionally strong performance in 2012 and so, as expected, growth in the first quarter of 2013 was slightly lower. The UK government business continued to grow strongly, helped by contracts started in 2012.

The group's developing markets businesses, which account for more than a third of group profits, continue to achieve strong results and their organic growth rates are expected to continue for 2013.

The macro-economic environment has affected developed markets margins and, despite active business improvement plans which are being implemented, group margins are expected to continue to be impacted adversely in the short term.

Exane BNP Paribas Neutral 260.00 260.00 330.00 280.00 Downgrades

Citigroup Neutral 0.00 260.00 325.00 270.00 Retains

Goldman Sachs Conviction Sell 261.90 260.00 242.00 210.00 Reiterates

Canaccord Genuity Buy 261.70 260.00 325.00 300.00 Retains

Lots of choice there! In the short term I would favour somewhere around 240p before I considered buying in.

Yes - there isn't anything endearing atm.

House broker Cazenove comment:
"Organic growth was 6% (12% in developing and 4% in developed) compared to 6.9% in 2012 and within management’s previous guidance of 6% to 7% for the FY. We forecast 6.8% for the FY.
However, the operating margin is down 0.6%, compared to the 0.1% decline in FY 2012 due a range of factors 1) tough trading in Continental Europe 2) ongoing pricing pressure in the UK & Ireland cash business 3) the cost of new contract start ups 4) £6m of bad debts in the Africa region. The statement refers to ongoing improvement plans but due to costs associated with the closure of 30 prisons in the Netherlands, management expects the 60bp reduction to continue for the FY. We had forecast the margin rising by 20bp but comparability is difficult due to the Olympics impact and the proposed sale of the US Government Solutions business.
Estimates; we currently forecast 2013 EPS of 25.3p, 5% above Bloomberg consensus of 24.2p and 2014 EPS of 27.5p, 3% above consensus of 26.6p. However, comparability is somewhat impacted by the fact that some analysts such as us probably still include the US Government Solutions business which is being sold and this would take 2% off our EPS. We think Bloomberg consensus for 2013 may come down by 7% to 8% post this statement.
Recommendation; today’s news on the margin is disappointing, especially as the organic revenue has continued to hold up well and the shares have been recovering since the Olympic news. It may be that all the bad news on the margin is now out but the shares will probably decline on this. We have an Overweight mainly as we think the shares are cheap for the long term EPS growth they have achieved. G4S trades on a 2014E PER of 11.1x compared to the Business Services sector on 14.7x"

HL lunchtime synopsis has 8.42% sells v 91.58% buys.

Bill Gates buys into security firm G4S

LONDON | Mon Jun 10, 2013 1:42pm BST
(Reuters) - Microsoft co-founder Bill Gates has increased his stake in G4S, the world's biggest security firm, which is looking to bounce back from a blunder over its staffing of the London 2012 Olympics.

The Bill & Melinda Gates Foundation Trust and Cascade Investment, an asset management firm owned by Bill Gates - one of the world's richest people - increased their combined holding in G4S to 3.2 percent last week by acquiring around 6 million more shares, G4S said on Monday.

G4S, which runs services such as cash transportation and prison management in over 125 countries, suffered a blow to its reputation when it failed to provide a promised 10,400 guards for the London Games. Following a profit warning in May, its chief executive stepped down last month.

Interesting chart and almost at the 52 week low. Big gap to fill on the way up.

edited!

Also edited!

At the 240 level again.

Harry - yes it is incorrect - if I could only remember which company I meant to post it on!

Lovely. Might have a few when it falls sub 240p.

(Probably SDY skinny)

Yep - already done!

240 gone.

Yes, I saw that. Next target 230p before I take the plunge!

Did you have a punt here skinny? Am still watching but prefer a little lower for entry point.

I did and made a whole 5 points.

Now just watching.

Panmure Gordon has cut its rating for security solutions group G4S from 'buy' to 'hold' and slashed its target price from 311p to 252p, saying that the shares are 'finely poised' between the bull and bear cases.

"The new management team clearly have a lot of work to do in order to clean up the portfolio, reduce balance sheet gearing and prove to the market that its medium term margin guidance of 7.0% is achievable," the broker said.

StockMarketWire.com
RBC Capital Markets has upgraded its recommendation on G4S (LON:GFS) to "outperform" from "sector perform" after conducting a scenario analysis on potential investments, disposals and a capital raising. The broker concluded that the market's biggest fear appears to be the debt position of the company, but the scenarios suggest improvement potential at a cost which is not prohibitive. The City broker has left its price target unchanged at 260 pence per share. The shares have fallen in value by around 3 per cent in the past month. Separately, Goldman Sachs repeated its "conviction sell" recommendation, cutting its price target to 194 pence per share (from 200 pence), in a note to investors last week.

I think the brokers might review their opinions now that there is yet another scandal breaking.

http://www.bbc.co.uk/news/uk-23272708

I saw the news, but obviously too late.

no wonder Buckles took an early bath!

G4S response to the Justice Secretary's statement on the UK Electronic Monitoring contract

G4S notes the Justice Secretary's announcement today and provides the following additional information:

The Ministry of Justice (MoJ) is an important customer and G4S is committed to addressing and resolving the MoJ's concerns as soon as possible.

G4S has co-operated fully with the PwC audit and is committed to co-operating with all audits of current contracts to the full extent provided under those contracts.

G4S has requested full details of the PwC audit findings and looks forward to receiving these in order to address any findings.

The Justice Secretary has confirmed that, following the PwC audit, he has no evidence of any dishonesty in relation to the EM contracts. G4S is conducting its own review, assisted by external advisers, and is not aware of any indications of dishonesty or misconduct. G4S believes that any evidence or indication of dishonesty should be referred to the relevant authorities including, if appropriate, the SFO.

G4S has not received a claim for a refund. Our own review continues and if we identify any evidence of overbilling, then we will reimburse the MoJ as we would with any customer.

Ashley Almanza, Group CEO, G4S plc said:

"G4S is committed to having close and open relationships with our customers and we strive to work in partnership for the mutual benefit of our organisations. We place the highest premium on customer service and integrity and therefore take very seriously the concerns expressed by the Ministry of Justice. We are determined to deal with these issues in a prompt and appropriate manner."

weasel words they may be joining some of their clients soon, after the Olympics fiasco what next?

JP Morgan Cazenove Overweight 210.60 - - Retains

Exane BNP Paribas Neutral 210.60 280.00 240.00 Reiterates

Deutsche Bank Hold 210.60 250.00 212.00 Reiterates

StockMarketWire.com
Security group G4S said sales were up 7.2% in the first half-year, with organic growth of 5.4%. The group enjoyed organic growth of 13% in developing markets. G4S took a one-off charge of £180m in the period.

Underlying PBITA was £201 million (2012: £202 million).

Strong and growing global contract pipeline of £4 billion per annum across a diverse range of sectors and regions, supports prospects for sustainable profitable growth.

Cash generated from operations £218 million.

A review of the group's assets and liabilities has resulted in a one-off charge of £180 million.

Net debt position as at 30 June 2013 was £1,950 million. The group is intending to raise funds via a 9.99% placing of new ordinary shares today.

Agreed sale of Canadian Cash solutions business and Colombia Data solutions for proceeds of around £100 million. Sale of US businesses progressing to schedule.

Interim dividend unchanged at 3.42p (DKK 0.2972).

shley Almanza, Group CEO, commented:

"There was strong demand for our services across key markets and industry sectors in the first half of the year which resulted in continued revenue growth. Growth was particularly strong in developing markets where we have excellent market positions. There are significant growth opportunities in our key markets and this is reflected in our growing contract pipeline of around £4 billion per annum.

On a like-for-like basis, half-year profits were in line with the same period in 2012 against a background of challenging trading conditions in Europe and in our cash solutions businesses in the UK and Ireland.

We are divesting a number of non-core businesses, which will improve our strategic focus and realise substantial cash proceeds. We have announced two disposals today with combined cash proceeds of around £100 million and we have a well advanced process to sell two other businesses in the US. We are also considering other disposals and these together with those already announced have the potential to raise up to £250 million.

We need to strengthen our balance sheet to be able to realise the group's opportunity for substantial value creation. Today we have announced our intention to raise funds via a 9.99% placing of new ordinary shares. This, together with our disposals program and a renewed focus on cash flow management will enable us to invest in sustainable, profitable growth and reduce our debt to a level which supports our goal of maintaining a long term net debt to EBITDA ratio of less than 2.5x.

On the operational front, we plan to introduce systems and processes to improve efficiency and risk management and we will be restructuring a number of businesses to ensure that they are more competitive and able to deliver improved margins.

Our unique geographic footprint, strong market positions and the skills and capabilities embodied in our employees, coupled with our diverse and global customer base provide us with a solid foundation from which we can continue to build the business.

Our strong contract pipeline, strengthened balance sheet, focused investment programme and improved operational and financial management all support the delivery of revenue growth, operational efficiencies and improved cash generation. In the near term, 2013 will be a year of consolidation for the group with the actions we are now taking starting to deliver tangible benefits during 2014."

Panmure Gordon has maintained its 'hold' rating and 240p target price for security solutions group G4S after a weaker-than-expected first half, but has praised management's efforts to turn the business around.

The broker said that while this will be a year of consolidation for G4S, it is a strong start by the new management team: "[…] we applaud the quick work undertaken by management to re-structure the group and shore up the balance sheet."

RBC Capital Markets Sector Performer 255.05 256.00 260.00 270.00 Downgrades

StockMarketWire.com
G4S has rejected a non-binding, indicative and conditional offer of £1,550m for its cash solutions business from Charterhouse Capital Partners.

The board consider the group's cash solutions services to be core to G4S's operations and strategic plans.

The board regards the nature and timing of the approach to be highly opportunistic and, following due consideration, with the assistance of financial advisers, the offer has been firmly rejected considering the strategic importance of the cash solutions businesses to G4S and because the board believes the conditional offer fundamentally undervalues the business and its prospects.

The company does not intend to pursue this non-binding, conditional offer and has notified Charterhouse Capital Partners LLP.

SFO Investigation
G4S confirms that it has today received notice that the Director of the Serious Fraud Office has opened an investigation into the "contract for the provision of electronic monitoring services which commenced in April 2005 as amended and extended until the present day".

G4S has confirmed to the SFO that it will co-operate fully with the investigation.

MoJ and Cross Government Contract Review
G4S plc, the global integrated security company, notes the announcements and statements made today by the Ministry of Justice (MoJ) and the Cabinet Office.

G4S has worked closely with the MoJ and Cabinet Office on an extensive review of its major contracts since July this year. This review is now complete and, with the exception of two court facilities management (FM) contracts, it has not identified any significant issues. The information available to G4S indicates that any financial exposure on the court FM contracts is not expected to be material to the Group.

G4S also notes the decision by the MoJ to refer the court FM contracts to the Serious Fraud Office (SFO) to consider whether it should investigate matters related to these contracts. The MoJ has advised G4S that the Ministry does not have any evidence of dishonesty in relation to these contracts. Furthermore, G4S has no evidence of such conduct.

The cross Government review found no evidence of deliberate acts or omissions by G4S in relation to charging and billing arrangements on its major contracts.

G4S places the highest premium on adherence to its company values, including customer service and integrity. We take the MoJ's concerns very seriously and the company has recently strengthened the service management team on the court FM contracts and continues to work closely with the MoJ to ensure that G4S delivers a facilities management service to the courts that reflects the high standards of performance which G4S expects to provide to all customers.

G4S continues to engage constructively with Her Majesty's Government regarding the Electronic Monitoring contracts.

RBC Capital has added G4S (LON:GFS) to its list of stocks to avoid and moved its recommendation to "underperform" (from 'sector perform') viewing the shares as being more than fully valued. Even assuming its best case scenario plays out perfectly over the coming four years, the broker reckons the shares would still only be worth around £3 each. G4S has been heavily re-rated with the market affording vastly higher valuations to a new management team, analysts said in a note to investors. We struggle with these valuations and move to Underperform.
The broker has cut its price target to 235 pence a share (from 255 pence) to reflect downgrades to earnings forecasts.

Analysts at Panmure Gordon have recommended investors ‘sell’ shares of security solutions firm G4S after the company’s annual results missed forecasts. The broker maintained its 200p target price for the stock, which implies 18% downside from current levels.

“We anticipate further pressure on consensus estimates on the back of these results and maintain our cautious stance on the shares for now.”

Citigroup Neutral 232.50 232.50 270.00 250.00 Retains

Goldman Sachs Conviction Sell 232.50 232.50 193.00 175.00 Reiterates

Deutsche Bank Hold 232.50 232.50 221.00 221.00 Reiterates

StockMarketWire.com
Security group G4S said today that Q1 revenues, compared to the same three month period last year grew by 4.8%, with organic growth of 5.0%.

Underlying profit before interest, tax and amortisation (PBITA) and earnings were slightly higher than the same period of 2013.

Emerging markets organic revenue growth was 16% with double-digit growth across all emerging markets regions. Developed markets' revenue was flat compared with 2013.

The group had a positive start to the year winning new business with annual revenues of over £440 million. Major contract wins include retail and services customers in the US, retail customers in Brazil, port security consultancy in the Middle East, cash solutions contracts in the Netherlands and significant new business with the UK Government.

In April, the UK Government gave a positive assessment of the group's Corporate Renewal Plan in the UK which forms part of the group's wider corporate transformation programme

The group continues to have a strong financial position, with S&P recently confirming its investment grade credit rating at BBB- (Stable).

Ashley Almanza, CEO said
"Our trading performance is in line with our plans, reflecting strong growth in emerging markets and satisfactory performance in developed markets. We continue to implement a group-wide transformation programme which is focused on embedding our group values, restructuring key businesses and investing in organic growth, technology, innovation and cost leadership and which supports our long term objectives of delivering sustainable growth in earnings, cash flow and dividend."

StockMarketWire.com
Security group G4S says its financial performance for the nine months to 30 September was in line with its plans.

The group reports organic revenue growth, compared to the corresponding nine month period last year was up by 4.2%.

It adds: "We continued to invest in organic growth and we have won new contracts with annual revenues of over £870 million and total contract value of £1.7 billion. Contract retention for the nine months was similar to historical levels, at slightly above 90%. Notwithstanding very high pipeline conversion, we ended the period with a sales pipeline of £5.1 billion.

"The benefits from our programme of corporate transformation resulted in underlying PBITA and earnings growth ahead of revenues, with the half year improvement in profits continuing into the third quarter and expected to continue for the full year. Operating cash flow for the nine months also improved compared with last year.

"Emerging markets' organic revenue growth for the nine months was 11% compared with 2013. Developed markets' organic revenue growth for the same period was 1%, with a continued strong performance in the North American business of 6%, partially offset by a 1% decline in the UK and Europe.

"In the third quarter we signed a binding sale and purchase agreement (SPA) for the sale of our US government solutions business for $135 million, comprising cash proceeds of $80 million and retained receivables of $55 million. The retained receivables are expected to be collected within 18 months of completion. The binding SPA is subject to customary closing conditions and the sale is expected to complete by the year end."

Group chief executive Ashley Almanza, said "We are executing a clear and focused strategy which is delivering tangible benefits. Our trading performance is in line with our plans, reflecting double digit revenue growth in emerging markets, the return of strong growth in North America and, as expected, a 1% decline in revenues in the UK and Europe. Our trading performance in 2014 and the on-going implementation of our performance improvement plans are expected to provide good momentum for the group in 2015".

StockMarketWire.com
Security group G4S reports underlying profit before interest, tax and amortisation of £424m for the year to the end of December - 7.9% up on 2013.

Underlying revenues rose to £6,750m from £6,496m and uinderlying earnings increased to £210m from £188m.

Emerging markets revenues rose by 8.9% to £2,398 million; North America was up 6.9% while revenues in the UK and Europe were down 1%.

The board is recommending an increase in the final dividend of 5% to 5.82p per share (DKK 0.6041), bringing the total dividend for the full year to 9.24p per share, a 3.1% increase.

Group chief executive Ashley Almanza commented: "The group made good progress with its strategic plan, delivering commercial, operational and financial progress during 2014. This is reflected in a 7.9% increase in underlying PBITA, a 11.7% increase in underlying earnings and a 25% increase in cash flow from the group's operating businesses. The group's progress and prospects are reflected in the Board's recommendation to increase the final dividend by 5%. There remains much to be done to realise the full potential of our strategy and we expect to make further progress in 2015."

StockMarketWire.com
Jefferies has downgraded its recommendation on security services group G4S (LON:GFS) to 'hold' from 'buy' in a note to clients, today.

The broker said: "To restore the Buy rating we would appreciate clean results and greater insight into cost efficiency initiatives. To be clear, we do not desire specific guidance from management but rather an understanding of individual initiatives as they occur."

Analysts also pegged their target back to 290 pence a share from 300 pence.

Meanwhile, Deutsche Bank upped its investment rating on the stock to 'hold' from 'sell', on Monday, despite admitting that the shares still look a little on the expensive side.

Nevertheless, the broker added: "Still, there is a lack of clear negative catalysts as the data and market environment continue to be supportive.

"Longterm, we are still cautious on the dynamics in developedmarket manned guarding and see more potential for structural growth at G4S."

Analysts at the bank boosted their price target to 280 pence per share (from 220 pence) as they roll their valuation a year forward (to 2015E).

StockMarketWire.com
G4S saw revenue from continuing operations increase by 2.8% to £3,285m in the six months to the end of June - up 4.2% excluding completion of three large contracts in Q1 2014.

Emerging markets revenues rose 5.7% to £1,183 million; up 8.7% excluding the Manus Island contract; with strong underlying growth in Asia Middle East and Latin America; North America up 5.4%; UK down 3.2%; Europe up 2%. PBITA increased by 4.9% to £193 million (2014: £184 million); emerging markets maintained at £87 million; developed markets up 3.2% to £129 million; corporate costs of £23 million, down £5 million.

Other highlights:
- Specific items included net £17 million charge from review and re-measurement of assets, liabilities and legacy contracts. Restructuring charges for the period were £16 million

- Cash from operating businesses was £195 million (2014: £185 million), up 5%.

- Underlying earnings of £95 million (2014: £86 million), up 10.5%

- Interim dividend up 5% to 3.59p per share

Chief executive Ashley Almanza said, "We continue to make good progress with our strategic plans, investing in growth and productivity programmes which underpinned strong growth in our pipeline and a 10.5% increase in underlying earnings. We won new contracts with a total value of £1.4 billion and sales, new contract mobilisation and on-going productivity programmes provided increasingly good momentum through the first half. This is expected to deliver further improvements in the group's performance in the second half."

StockMarketWire.com
G4S reports underlying earnings of GBP227m for the year to the end of December, up from GBP199m last time.

Revenues rose to GBP6,433m from a restated GBP6,187m and underlying PBTA rose to GBP427m from a restated GBP404m.

On a statutory basis earnings were GBP8m against GBP145m last tine. The group says this is is after charging onerous contract provisions of £65 million, restructuring of £44 million, losses on businesses being sold or closed of £40 million and non-cash charges of £106 million relating to the amortisation/impairment of goodwill.

Chief executive Ashley Almanza said, "During 2015 we made substantial progress with the strategic and operational transformation of G4S. Our portfolio management programme combined with our investment in sales, innovation and re-structuring is reflected in the results of our continuing operations where the group's revenues rose by 4% and underlying earnings rose by 14%. These programmes remain a priority and are expected to sustain our growth and strengthen our balance sheet. "We continue to actively manage our onerous legacy contracts in the UK which were entered into prior to 2013. We have had to increase the provisions in relation to these contracts. We have also established robust controls governing new major contracts. "Against a background of global economic uncertainty, demand for our services has remained resilient and growth accelerated in the second half of 2015, providing good support for further operating and financial progress in 2016."

GFS are surely going to have to issue an RNS statement regarding questions over their vetting procedures after yesterday's Orlando shooting. Three years since the killer was checked. The company may well be sued bigtime.

Seems FBI also investigated this guy. Amazing that one man (non board member) can move a share price so much. This surely is just a knee jerk reaction from the market on the back of a down day?

The FT in the past hour:

https://next.ft.com/content/d1ccd574-30f9-11e6-ad39-3fee5ffe5b5b

G4S’s risk management policies have been thrust into the spotlight after it emerged that the world’s biggest security company employed Omar Mateen, who shot and killed at least 50 people at a gay nightclub in Orlando.

Mateen was not on duty when he launched the assault but had worked in Florida at the private security company since 2007, most recently guarding a county courthouse in Port St Lucie.

The incident will raise questions yet again over the company’s staffing and vetting procedures following a string of scandals involving G4S employees.

G4S, which employs 620,000 staff in 110 countries, on Sunday said it was “shocked and saddened” by the assault and was fully co-operating with the authorities.

Last month the company had announced a decision to pull out of work running youth detention centres in the UK and the US after staff at a young offenders centre run by G4S were filmed apparently squeezing a teenager’s windpipe as the 14-year-old screamed “I can’t breathe”. More than five staff were arrested and the investigation is ongoing.

G4S, run by chief executive Ashley Almanza, has been struggling to rebuild its fortunes ever since it failed to supply enough security guards for the London 2012 Olympics with the army called into make up the shortfall.

In 2013, it was temporarily banned by the British government from winning new contracts and told to embark on a programme of “corporate renewal” after it was referred to the Serious Fraud Office, along with rival Serco, for overcharging the ministry of justice for the electronic monitoring of offenders, including some who were dead.

With its reputation dented in the UK, G4S had increasingly been looking to North America, where demand in the $47bn-a-year security services market is increasing. Commercial clients account for about two-thirds of its work in the US with customers including Nike, IBM, General Motors and Bank of America.

G4S also has close ties with the US military, providing services for the Pentagon and at 100 US military bases from Afghanistan to South Korea. Its contracts include work for the Department of Homeland Security returning illegal Mexican immigrants to the US border.

The Telegraph 20 minutes ago:

"Shares in security company G4S have plunged to a seven-year low after it confirmed that Omar Mateen, the man who killed 50 people in an Orlando nightclub, was one of its employees."

"An analyst, who declined to be named, said: “G4S has a big presence in the US. This doesn’t reflect well on them, and the US government may take the decision to keep away from giving them more work in the light of this.

Dividend now 5.3% but not enough to entice me.

StockMarketWire.com
G4S won new contracts with a total value of £1.4 billion and revenue from its continuing businesses increased by 5.1% in the first half.

Revenue increased to £3.1 billion and PBITAa rose to £199 million up 8.2%. Earningsa of £102 million up 13.3% Operating cash flowa of £293 million up 51.8% Net debt/EBITDA fell slightly to 3.2x (December 2015: 3.3x) as the group's net cash flow covered the impact of sterling weakness. The interim dividend is maintained at 3.59p per share.

On a statutory basis, revenue increased by 3.2% to £3.5 billion and PBITA increased by 9.7% to £203 million. Earnings of £69 million (2015: £48 million), were up 43.8% after charging £27 million (2015: £40 million) of amortisation and impairment of acquisition-related intangible assets. Operating cash flow increased by 70.6% to £273 million.

Chief executive Ashley Almanza said, "In the first half of the year the Group won new contracts with a total value of £1.4 billion and revenue from our continuing businesses increased by 5.1% which, combined with the positive effect of our productivity programmes, produced a 13.3% increase in earnings. Higher operating profits and enhanced working capital management underpinned strong operating cash flow of £293 million, an increase of 51.8%.

"Our plans are delivering tangible results with our PBITA margin increasing from 5.1% to 6.45% since June 2013. We have much to do to realise the full potential of our strategy which is underpinned by our growth, innovation, productivity and portfolio programmes. Executing these programmes and reducing net debt remain our key priorities. The Board has declared an interim dividend of 3.59 pence per share."

RBC note:
"H1 results are 1% ahead of us at the EBITA line driven by a slightly better organic growth (5.1% vs 4.1%) forecast and a slightly better margin performance, although again messy given restatements, disposals and onerous contracts. Cashflow and the net debt position were better than feared with a working capital inflow and less forex impact. As a result net debt is at the same level as the FY and although the IAS19 pension deficit has increased by £80m, commentary around the upcoming actuarial review is more positive. Net debt to EBITDA has drooped a touch to 3.2x and management remains confident of still gleaning £250-£350m from disposals over the next 18m. The dividend has been maintained. Whilst the balance sheet remains stretched, treading is fine and cashflow is better and given the negative sentiment over the stock, I would expect it to be up today. We recently upgraded to Sector Perform (on July 25), believing risk reward is more balanced given the valuation (11x 17E PE, 5% Div yield) if management could put the balance sheet issue to bed.
Sales – £3,086m vs forecast £3,071m
EBITA – £199m vs forecast £196.5m
Clean EPS – 6.6p vs forecast 6.0p (cons 14.5p)
DPS – 3,59p vs forecast 3.59p – flat
Sales: Organic revenue growth has come in at 5.1% vs 4.1% forecast and vs 3.6% at H215. Good growth was seen in most areas – Africa (7.4%), North America (3.5%), Asia (3.4%) Middle East (16.4%), Europe ( 5.06%) and Latam (9.4%) with only the UIk weak at -1.9%
Margin: Ex disposals and onerous contracts, the EBITA margin was 6.45% vs 6.4% forecast – up 18bp on last year. Cash services margin increased by 90bp although secure solutions was down 10bp
Exceptionals: Total exceptionals for the H1 were £11m
Net debt/Cash flow: Net debt was £1782m vs £1782m at the FY and vs £1984m forecast – a good performance – with less of an impact from forex than feared and a good working capital performance (+£53m). Net debt to EBITDA now stands at 3.2x (vs 3.3x at the year end) although this is higher if include the pension deficit.
Further disposals – Sold 7 businesses in H1 for £32m. No news on the bigger businesses held for resale other than ‘We have a structured process and active buyer interest in our remaining businesses held for sale.’
Pension deficit: £314m net of tax vs £234m at FY –reflecting changes to discount rates and the deficit reduction payments. The latest actuarial review is due in H2 but is expected to reflect strong asset performance and a reduction in the deficit
Outlook – Maintaining the 4-6% medium-term growth target and still expects to glean £250 to £350m from disposals over the next 18m."

StockMarketWire.com
Security group G4S has agreed the sale of G4S Israel to FIMI Opportunity Funds (FIMI) for an estimated net consideration of NIS425m (equivalent to £88m) which will be satisfied in cash at completion.

FIMI is a premier Israeli private equity fund.

G4S will retain a presence in Israel through ownership and continued investment in the flagship national police training centre Policity in partnership with FIMI and Shikun & Binui, a major Israeli infrastructure and real estate group.

The sale is subject to government and customary regulatory approvals which are expected within the next three months. The net proceeds will be used for general corporate purposes.

G4S Israel provides manned security and security systems across Israel. In the year to 31 December 2015, G4S Israel generated profit before taxation of £8m and, as at 31 December 2015, it had gross assets of £56m.

As part of the transaction, senior management in G4S Israel will remain with the business at completion.

G4S group chief executive Ashley Almanza said: "The sale of our business in Israel is part of our active portfolio management programme announced in 2013 to improve our strategic focus and capital discipline.

"G4S Israel is a well-managed business that will grow and prosper as part of the FIMI group providing a positive future for our 6,000 colleagues in Israel and long term, high quality service and support to customers operating in the Israeli market."

StockMarketWire.com
G4S has completed the sale of G4S Youth Services in the US to BHSB Holdings, Inc for US$56.5m in cash.

G4S said proceeds from the sale would be used for corporate purposes.

G4S Youth Services is a leading provider of residential-based juvenile services throughout Florida and in the states of Texas and Tennessee.

In the year to 31 December 2016, G4S Youth Services posted profit before taxation of US$5.1 million (2015 US$5.6 million) and, as at 31 December 2016, it had gross assets of US$21.5 million (2015 US$21.4 million).

G4S said that as part of the transaction, senior management in G4S Youth Services would remain with the business.

StockMarketWire.com
G4S has made a strong start to its financial year as it maintained momentum from the end of 2016.

Revenues from the group's continuing businesses were 8.9% higher than the first quarter of 2016.

The group said trends continued from 2016, with double-digit organic growth in developed markets and revenues broadly unchanged in emerging markets.

It said that new contract wins and the pipeline provided confidence in the group's expectation of average revenue growth in the range of 4-6% per annum.

As part of the established portfolio programme, the group realised $56.5m in the quarter from the sale of the Youth Services business in the United States.

The group said its business plan and current performance continued to support a net debt/EBITDA ratio of 2.5x or lower by the end of 2017.

Chief executive Ashley Almanza said: "In line with our expectations, the group had a strong start to the year, with the momentum from 2016 continuing into the first quarter of 2017."

StockMarketWire.com
G4S reported revenues from continuing businesses rose 3.2% at £7.43bn and earnings rose 5.7% to £277m from £262m, while profit after tax grew to £281m from £263m the previous year.

The firm's overall growth in revenue and profit was driven by strong volume growth, particularly in its retail cash solutions business in North America, Cash360 in Europe and Deposita in Africa and Asia.

The group reported developed markets revenues grew 3.7%, and emerging markets revenues grew 2.9%, amid strong growth in technology-related security revenues which grew 11.4%. Emerging market revenues were weighed by a 5.1% drop in revenues in the Middle East & India.

Secure Solutions and facilities management - representing 77% of revenues - were up 3.4% to £6.22bn, while cash solutions revenues rose 2.3% to £1.21bn.

The firm reported adjusted PBITA of £496m, up 4.2% from £476m the previous year.

The group's net debt to EBITDA improved to 2.4x from 2.8x in 2016.

The final dividend was raised 5% to 6.11p per share, taking the full-year dividend to 9.7p per share.

Chief executive Ashley Almanza said: 'G4S has delivered another year of profitable growth and good cash generation, enabling us to invest in our growth, technology and productivity programmes and, at the same time, strengthen our balance sheet.'

'The outlook for the Group is positive: our strong market positions, commercial discipline, growing technology-related revenues, positive cash generation and on-going productivity programmes provide substantial confidence that the Group is well positioned to deliver a strong performance over the next three years.'

StockMarketWire.com
G4S said Wednesday it expected growth to accelerate in the second half of the year after organic revenue fell 2% in the first quarter.

The fall in first-quarter revenue was due to a tougher comparison as revenue in the same period a year ago was lifted by a large retail solutions contract in North America.

The firm said its North America retail cash solutions business had continued to build a large sales pipeline, making significant progress with pilot programmes at major retailers.

'We expect growth to accelerate in the second half of 2018 as the strong first-half comparatives from Retail Cash Solutions roll off, our new contracts mobilise and our productivity programmes deliver benefits to the bottom line,' said G4S Group Chief Executive Officer, Ashley Almanza.

StockMarketWire.com
Security company G4S reported Thursday a plunge in first-half profits and lower revenues as restructuring costs and poor performance in the Europe & Middle East and the Americas weighed.

For the six months to 30 June, reported profit before tax fell 36.5% to £139m from £275m a year earlier, revenue fell 7.5% to £3.67bn and operating profit fell 29.8% to £193m.

The company blamed the performance on restructuring costs, poor trading in the Europe & Middle East Secure Solutions region, and increased business development and operating costs in the cash solutions division.

Profits were also weighed down by an £8m hit from sold businesses.

The company said, however, that momentum should pick up during the second half of the year.

'Our contract wins and strong retention rate in the first half of 2018 provide good revenue momentum and this, together with an improving sales mix and planned productivity benefits in the second half of the year, underpins the Group's positive outlook for the full year,' said G4S Group Chief Executive Officer, Ashley Almanza.

You seem to like gaps skinny!..........................

Gaps apart - a bullish engulfing flag yesterday - the market looks to be opening @-55.

StockMarketWire.com
Security company G4S said Wednesday full-year profits would be flat year-on-year after third-quarter revenues were weighed down by weaker performances in Benelux and its conventional cash services business.

Pre-tax profit (PBITA) for 2018 was expected to be flat compared with the prior year following investment in new products and services, G4S said.

Organic revenue growth was 2.5% for the third quarter from a year earlier, resulting in growth of 1.1% for the first nine months of 2018, the company said.

Performance was weighed down by lower revenues in Benelux and conventional cash services offsetting strong growth rates in security services in North America and Asia and in cash technology solutions, the company added.

'We continue to exercise commercial discipline in markets where labour supply is tight and whilst this is expected to constrain revenue growth in 2018, our new contract wins and substantial, high quality pipeline provide good momentum into 2019,' said G4S CEO Ashley Almanza.

Stifel comment:
"The much anticipated pick-up in growth, which was key to our BUY thesis, has failed to materialise.
We believe the market's confidence in management's promises has been dented by yet another underwhelming update. The group is developing a reputation for over promising / under-delivering; it will take time to rebuild trust.
In the meantime we expect the shares to tread water. G4S has strong foundations operationally but so far has failed to translate these to sustained earnings momentum. This needs to change if the share price is to regain some positive momentum.
We downgrade to HOLD and cut our FY18 earnings numbers by c.7% (consensus likely to come down by c.3-4%). Our new 190p target price represents 10x 12-month forward earnings, at the bottom end of the group's trading range [11-18x] and represents a dividend yield of c.5% which we think is sensible."

UBS today reaffirms its buy investment rating on G4S PLC (LON:GFS) and cut its price target to 235p (from 300p).

MACD looks to be turning up.

Yes, I am watching this & WMH, both of which appear to be approaching a turning point.

Review of Separation Options for G4S Cash Solutions
The Board of G4S is today announcing that it is reviewing options for the separation of the Group’s Cash Solutions businesses from the Group, following the establishment of the Global Cash Solutions division on 1 January 2018.

Since 2013, G4S’s portfolio management programme has created a focused Group with two principal business segments: Secure Solutions and Cash Solutions. The Board believes that a separation of Cash Solutions has the clear potential to enhance the focus and success of both businesses and thus to unlock substantial shareholder value.

The review of separation options has commenced and is expected to be completed during 2019. An update will be provided with the Group’s full year results in March 2019.

HSBC today reaffirms its hold investment rating on G4S PLC (LON:GFS) and cut its price target to 220p (from 245p).