I am happy with the way matters are moving here.

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.