G4s Share Discussion Threads

[hvs] 29/8/2013 15:37

lol !!!!!

It will come out of the BONUS.

[the juggler] 29/8/2013 15:30

Almanza also put his money where his mouth is yesterday by purchasing circa £251,000 of GFS share himself.

[albany30] 29/8/2013 13:17

£1.9bn debt before £348m share placing and £250m for disposal of non-core businesses.

Cashcall avoided, ratings downgrade avoided.
Global sales pipeline of £4bn.
Sales up 7.2% despite the bad PR of the last year.

buywell2 - what is your prediction for G4S in next few months and why?

[buywell2] 29/8/2013 12:23

£1.9 BILLIONS of debt

But a lot of big name investors cos they think the overment gravy train of contracts won't stop rolling

Sooner or later I think this will hit the buffers

Director buying ............. it don't impress me much

[albany30] 29/8/2013 12:17

Questor is an amateurish column which picks up 'tips' after they're started shooting, or makes sells based solely on tabloid headlines without no due diligence. That piece on G4S is another clunker - note he uses vague, hypothetical generalisations on acquisitions with no specific detail whatsoever.

I'm with the Times comment.

Almanza is precisely the chief exec G4S needs. The reality is that given the catastrophic issues over the past 15 months, G4S's share price should have - by all accounts - plummeted, and a guaranteed cash call. After a brief bottoming out at 210p, it's been heading steadily upwards even before Almanza began steadying the ship. The bleatings of Chris Grayling have, as we know, little impact on G4S as a global concern.

With yesterday's share placing and the upcoming cost reduction programme, the new management (buy2well seems to be stuck reading Sun headlines on Buckles of a year ago with 'inept management' comments) have done exactly what is required and the balance sheet is clearly now the priority, and not Nick Buckles hairdo.

Think it's realistic to expect the share price to climb back towards the 280p mark in the coming months.

[grahamburn] 29/8/2013 11:49

Two differing newspaper views of the company's debt situation. Not commenting either way but illustrates how fascinating investing can be because everyone has a different opinion based on identical facts!

First, The Telegraph (courtesy of Digital Look Tips Watcher):
G4S may be a good example, at the microeconomic level, of what had been taking place at the macroeconomic level. The company now has to pay off a multi-year acquisition binge but the profits generated from those new assets are falling. So it could well be the case that the price paid was too high and there might have to be some "chunky" write-offs in the value of the related "good-will" attached to those same assets. The company now finds itself in a situation where it owes twice as much to the banks – net debt - as the value of the assets on its balance sheet – net assets. Hence, Questor downgrades G4S to "sell."

Second, The Times (from its Business Editor's Comment column):

Unbuckled, with room to grow
It is one of the first things that an incoming chief executive of a company with potential credit rating issues is told by the chairman: "Control your balance sheet or it will control you."

Ashley Almanza, the new man at G4S, has not been slow to respond. His first public outing yesterday came with a £348 million share sale that, along with several asset sales, takes away the risk of a potentially costly ratings downgrade. The various writedowns announced - please don't call them a kitchen sink job, although that is what they are - also amount to a symbolic break with the Nick Buckles era.

The question is why Mr Almanza saw a pressing need to bolster the balance sheet at this moment. By his own admission, G4S faces no significant debt maturities this side of 2016, which rather suggests that he is seeking room for manoeuvre as he tries to put the company back on a growth trajectory.

That growth, given the Government's present grumpiness towards G4S, is more likely to be overseas than at home. If he gets it right, the investors who subscribed for new shares yesterday got a bargain.

[a0148009] 28/8/2013 17:00

Placed at 247 together with entitlement of 3.42p dividend ex 4th Sept paid 18th Oct.Yesterday's close 245.3p seems a full price based on recent choppy share price performance.

AO

[buywell2] 28/8/2013 16:18

Big players averaging down or hoping this will turn good

I don't agree with them ... debt will sink this if the inept management don't first

[enami] 28/8/2013 16:16

Placing price 247p.

[enami] 28/8/2013 07:49

PROPOSED PLACING OF NEW ORDINARY SHARES

G4S announces today its intention to place up to approximately 140.9 million new ordinary shares (the "Placing Shares") representing up to 9.99 per cent. of the Company's existing issued share capital (the "Placing").

Wot no rights issue??

[enami] 28/8/2013 07:47

-- Sales up 7.2%, organic growth of 5.4%. Organic growth of 13% in developing markets
-- Underlying PBITA of GBP201 million (2012: GBP202 million1)
-- Strong and growing global contract pipeline of GBP4 billion per annum across a diverse range of sectors and regions, supports prospects for sustainable profitable growth
-- Cash generated from operations GBP218 million
-- A review of the group's assets and liabilities has resulted in a one-off charge of GBP180 million
-- Net debt position as at 30 June 2013 was GBP1,950 million. The group is
intending to raise funds via a 9.99% placing of new ordinary shares today
-- Areed sale of Canadian Cash solutions business and Colombia Data solutions for proceeds of around GBP100 million. Sale of US businesses progressing to schedule
-- Interim dividend unchanged at 3.42p (DKK 0.2972)

[buywell2] 25/8/2013 16:52

Wednesday looks like another profit warning coming plus a cash call

GFS has some BIG hitters on their shareholder list , most probably because they saw the company as a cash cow re Government Contracts.

However the last CEO didn't cut the mustard and the ability of the BoD now is in question.

Sure the said BIG hitters can hold the share price up .... as perhaps some have done already, falling volumes through the August rise refers maybe

But ineptitude will win out in the long run

Can't see a cash call doing very well with profits warnings at say 200p despite paying a dividend.

Dividends are not necessarily forever as perhaps time will show

Thus a cash call at a chart support below 200p would be more likely to get away.







Then there is the small matter of that nasty word ......................debt .... £1.8 Billions of it

[srpactive] 20/8/2013 10:28

Yes was waiting then, and missed it, although I feel
with patience I will have another chance we shall see.

Nice talking to you.

Regards

active

[grahamburn] 19/8/2013 19:17

Why? After all, it was well below that figure (almost down to 200) only a month or so ago.

[srpactive] 19/8/2013 17:50

I have been watching these or a while, if we have a retrace to
230p approx,I might be interested we shall see.

regards

active

[hvs] 15/8/2013 13:33

"LORD" TAXPAYERS MONEY MYNERS

NIce.

[hyden] 13/8/2013 18:11

Oh, but he has! In other words, the accusations re: tagging are without merit and will lead to nothing but further tax payer expense. Market confidence in this outcome is increasing hence the share price momentum. Enjoy the ride. Not too sure about 300p but we're already half way there. :-)

[tday] 13/8/2013 17:36

Can somebody please lock up hvs and throw away the key. He's just a bloody nuisance; always moaning but, with nothing constructive to say.

[hvs] 13/8/2013 15:40

lol !!!!!

How did "no" LABOUR this guy a "LORD"

Taxpayers MONEY DOWN THE DRAIn.

[phoenix1234] 13/8/2013 14:38

Group4Services: following news of yesterday's shareholding event

[hvs] 13/8/2013 09:09

Lord it Myners put tax payers money into defunct banks.

Best "adviser" Gordon Brown ever had with tax payers money to boot.