Those interested in value rather than gambling might consider RSG. Regulation of the security market should mean better margins going forward for the quality players in the core manned guarding business, which has had lots of cowboy competition over recent years. This forced RSG to look elsewhere for growth and it has come from facilities management, business process outsourcing and support services. Year to 4/04 saw security services t/o 209M (previous year 196M) and profit 9.1M (8.8M), with facilities management etc t/o 83M (72M) and profit 4.3M (4.3M) as investment in this side grew.

Recent trading statement suggested figures to end April 2005 should be slightly ahead of market expectations. These are due out end of June. RSG had net cash 10M as at 4/04, increased to 15M at interim stage and may well approach 25M as at 4/05. Cash boosted by sale of Safe Estates vacant premises protection business for 7.3M end of 2004 (which will also give exceptional profit over 4M in year to 4/05).

Shares took a knock last year when it was announced that they had lost an electronic tagging contract with the Government. With annual sales 18M, this ran off April 2005 and lack of renewal will impact 2005/6 results, but having followed the company for almost 20 years I am inclined to believe this was a one-off. Whilst the coming year will therefore be more difficult, other new business should go a long way to replacing it. Cash position suggests dividend over 3% will be safe and may increase.

Added spice in the fact that chairman Brian Kingham owns around 70%. Audited accounts do not give his age, but his photograph suggests succession may be on his mind. Recently appointed a new Group M/D with recent history of selling a business and Goldman Sachs appear as holder of over 3% end of May.

With market cap only 110M and business holding perhaps 25M of cash this looks an excellent value investment in growth markets with possible takeover prospects in for nothing. I bought on the bad news at end of 2004 and included these as one of my four in Erics second ASOS Challenge. Yet to really perform, but the patient should be rewarded. As always, DYOR.

See Artemis now has disclosable interest. Results due end of June.Anyone else any views?

Disappointed to see no interest, but check those figures today.Market cap below 120M. No debt - cash 27M. Pre tax over 15M before exceptional gain on sale of business etc 3M. Prospects good, despite loss of one large government contract.Margins should improve when regulation of security personnel introduced next year. Good divi over 3% rising. Promise of 10M to be returned to shareholders. Mine are locked away.

Nice rise today.Could be one of the less obvious beneficiaries of the Olympics for long term players like me!

Still happy with these.Good rise recently after figs to April 2006 showed 21M in cash after tender offer to buy back at cost of 10M. Profit affected by previously announced contract loss but still making decent return and prospects good. Elderly chairman holds 70% and Goldman Sachs has built stake to 10% - interesting as I would have thought it a bit small for them.Moved to AIM from main market early in 2005 - hope/expect things to happen next year. Always DYOR.

Encouraging trading statement at AGM last week.Price unmoved at 629p middle (small free float usually leads to large spread).IMO these will reward the patient.

Nice move on this one today on a number of small purchases (now650p), hopefully just the beginning - are you in Maggie?

Can anyone join in this thread ?

It's a nice long term hold. A big beneficiary of the 2012 Olympics as they are providing security staff for most of the sites whilst construction continues and will, no doubt, provide to continue staff until the end of the event itself.

Ian

Welcome Ian - had been very lonely on here. They are a quality player in a sector where regulation should gradually drive out the cowboys who have hurt their margins on traditional manned guarding activities in recent years. Other business (BPO) is growing well. I was cross when they moved to AIM in 2005 as shares had to come out of my PEP, but as a long term player IMO they will still be very rewarding. Lower CGT may influence chairman's thinking next year regarding his 70% shareholding (i.e. two years after move to AIM) - my missus could also benefit to a rather lesser degree in due course from IHT allowances.

HELP: Bit curious as 5 dealings so far today all show as sells, yet each has been at slightly higher price than the one before. Can anyone explain this apparent defiance of the laws of economics?

Now 700p and on a decent upward trend. Still feeling very good about these - move to AIM was August 2005.

Onward and upward. Lot of activity (by their standards) today augurs well for results due in June.

Curiouser and curiouser... hope a few of you are in this!

Possible offer from the Chairman - not what I had expected, but it will do!

Jump today - possible offer from Chairman at min 915p. With the trading strong, it would not bother me unduly if bid did not materialise, although I believe it will. Bit disappointed with the level, as I think they are worth 10 on balance sheet strength, cash generation and prospects (not least with the Olympics hovering into view). Feeling smug about post 9, nice to get a call right sometime! Hope some of the patient with appetite for quality are also benefitting from this one.

Bid right on cue at 916p. A long term quality investment, a multi bagger on original capital and good dividends along the way.Only complaint is that following their switch from main market to AIM two years ago, had to remove from PEP and now have large CGT liability to calculate. Hope some of you were in.