G4s Share Discussion Threads

[enigma2002] 16/7/2012 23:35

if ya pay peanuts....

[m.t.glass] 16/7/2012 22:10

More info being added by various police forces unhappy with already making good the shortfalls when G4S staff fail to turn up for work - this story is getting worse.

[jon827] 16/7/2012 16:51

There truly are some ignoramuses about

[marauder7] 16/7/2012 16:50

Never interacted with a single member of GFS staff and didn't come away thinking I dealt with a moron or monkey or both AND that I needed to bathe to avoid possible infection.

Guess the same problem subsists higher up this corporate tree...

Short it to hell...

[m.t.glass] 16/7/2012 15:27

from Dow Jones News:



UPDATE: G4S Shares Sink On Botched Olympics Contract



Group 4 Securicor (LSE:GFS)


Today : Monday 16 July 2012


-- G4S warns of up to GBP50 million profit hit due to botched Olympic Games contract

-- Company to also cover additional cost of military deployment required to meet shortfall of security guards

-- CEO 'deeply disappointed' by failure to meet contract obligations

-- CEO to face lawmakers at parliamentary committee Tuesday

-- Shares down 9%. Statement results in slew of broker downgrades

(Adds executive and analyst comment and detail throughout.)

By Simon Zekaria

LONDON--Shares in G4S PLC (GFS.LN) slumped Monday after the U.K.-based security and support services giant warned of large hit to its profit because a botched security outsourcing contract for the Olympic Games that necessitated a last-minute stepping in of army soldiers.

The company said it will incur a loss on the contract of up to GBP50 million this fiscal year. The company, which came under fire from government officials, added that it will cover the additional cost of deploying military personnel required to meet the shortfall.

Chief Executive Nick Buckles said the firm is "deeply disappointed" it couldn't fulfil the Olympics contract. Chairman John Connolly said G4S had "fallen short of its obligations."

G4S faced an onslaught of criticism after admitting that it didn't yet have enough personnel to guard the Olympic Games, with Prime Minister David Cameron calling for the company to face penalties.

The government has said it would provide 3,500 more military personnel to guard venues after learning that the world's largest security company by employees and second-largest private-sector employer after Wal-Mart Stores Inc. (WMT) didn't have enough workers.

The private contractor was paid to supply 10,400 guards to a planned force of 23,700; it said Thursday it had already deployed 4,000 guards and another 9,000 were in the process of vetting, training and accreditation.

At 1246 GMT Monday, G4S shares were down 25 pence, or 9%, at 254 pence, the biggest faller on the FTSE 100 index. The news resulted in a slew of downgrades, including from UBS and Jefferies.

The company in March posted a 23% decline in net profit for 2011, to GBP181 million.

UBS analysts said the high-profile nature of the contract and political angle creates risk to G4S's reputation.

Panmure Gordon analyst Mike Allen added thoughts are now turning to any potential impact on further outsourcing deals with the U.K. government.

"While the likely outcome of the Olympic contract is no doubt disappointing, our biggest concern is the impact it could have on other outsourcing contracts with the U.K. government, which is sizeable at [over] 20% [of the business] and growing part of its bid pipeline."

Mr. Buckles has been asked to appear before a parliamentary committee Tuesday to answer questions about the company's GBP284 million ($440 million) contract for the Games, which are 11 days away.

Analysts said the debacle will raise question marks about the future of Mr. Buckles, while reports said the executive would face a shareholder backlash this week.

The company has also had a bumpy corporate ride in the past year. In November, G4S's proposed $8 billion takeover of Danish cleaning company ISS A/S came undone after being shouted down by shareholders over its offering price and strategy.

"It appears certain that Buckles will fall on the sword along with other senior U.K. management. This could lead to a period of instability at the company which appointed a new chairman just over a month ago," Seymour Pierce analyst Kevin Lapwood said.

Cited in both The Sunday Times and The Sunday Telegraph, Mr. Buckles said he is prepared to consider his position. "I will leave my position open and will be quite happy to listen to shareholders views in due time," he said to The Sunday Times.

If Mr. Buckles is forced to leave, he could go with a financial package totaling about GBP21 million, which includes share schemes, bonuses and pension, The Sunday Times reported, without saying where it got its information.

Still, The Sunday Telegraph quoted Mr. Buckles as saying he wouldn't take a bonus.

"I honestly believe most CEOs going forward will have a reason why they can't take their bonus. This is a huge reason, I am not denying that. I wouldn't get one anyway because it will hit the profit line."

Pressure is thought to be growing on Ian Horseman Sewell, managing director of G4S's global events division, responsible for overseeing the Olympics contract, The Sunday Times said.

-Write to Simon Zekaria at [e-mail]

[enami] 16/7/2012 11:08

Broker targets so far today. Broker Recommendation Old target price New target price Notes RBC Capital Markets Sector Performer 350 300 Downgrades Panmure Gordon Hold 330 300 Downgrades Numis Hold - 260 Downgrades Credit Suisse Outperform 310 300 Reiterates Seymour Pierce Hold 350 240 Downgrades Espirito Santo Neutral 290 290 Retains UBS Neutral 330 280 Downgrades Jefferies International Hold 330 285 Downgrades

[marauder7] 16/7/2012 10:42

Well done, enigma2002. :)

The data feed is delayed by a few days. I would guess the spike's already started.

Burn, GFS - burn.

[enigma2002] 16/7/2012 10:33

stock on loan or summit looks like.... imagine it will spike in next few days

[marauder7] 16/7/2012 09:49

Anyone here smart enough to know what the chart below is about?


The above data is delayed by a few days... just wait and see what happens.

[jon827] 16/7/2012 08:05

Morning max

[maxk] 16/7/2012 07:15

G4S PLC Statement re Olympic Games Security Contract



Date :

16/07/2012 @ 06:00



Source :

UK Regulatory (RNS & others)


G4S PLC Statement re Olympic Games Security Contract

TIDMGFS

13 July 2012

G4S plc

Statement regarding the Olympic Games Security Contract

G4S is totally committed to delivering a safe, secure and successful London
2012 Olympic and Paralympic Games. The Company is entering the final stages of
an extremely complex workforce supply contract which is on an unprecedented
scale.

We have recently encountered significant difficulties in processing applicants
in sufficient numbers through the necessary training, vetting and accreditation
procedures. As a result, we will be unable to deliver all of the necessary
workforce numbers.

We have worked very closely with LOCOG throughout the build up. At the point we
felt that we could no longer assure the scale of the security workforce we had
committed to, we advised them of the situation. The Government has therefore
decided to increase the number of military personnel who will work at the Games.

We are grateful for the additional military support. We do not underestimate
the impact on the military personnel and their families and express our
appreciation to them.

G4S accepts its responsibility for the additional cost of the increased military
deployment resulting from the shortfall in workforce delivery. The company is
also incurring other significant costs as it endeavours to meet the contract
challenges. Whilst it is not possible to gauge the precise financial impact, it
is estimated that the Company will incur a loss on the contract in the range of
GBP35m - GBP50m, all of which will fall in the current financial year.

G4S is fully aware of the importance and significance of its role in ensuring
that the 2012 Games are secure and successful. The Company deeply regrets that,
despite the relentless efforts of so many of its people, it is unlikely to
deliver in full its obligations to LOCOG, to the Government and to everyone with
an interest in these Games.

Our immediate priority is to work with LOCOG and the military to ensure the
necessary workforce delivery. When the Games are finished, the Board will
conduct a full review of our performance on delivering this contract.

Nick Buckles, CEO said:

"We are deeply disappointed that we have not been able to fully deliver against
our contract with LOCOG and that it has been necessary to call upon the
additional military personnel. In partnership with the military and LOCOG, we
are working flat out around the clock to resolve the situation. We are
determined that together we will deliver a successful and secure Games. I would
like to thank the members of the current security workforce who are already on
the ground securing many of the Olympic sites across the country."

John Connolly, who joined G4S as Chairman on 8 June 2012, added:

"Since I joined the Company I have seen the huge focus which has been placed on
delivering this contract. It is a significant disappointment to everyone at the
Company that we have fallen short of our obligations.
I know however that everyone involved throughout G4S is doing everything they
can to improve the situation and we are putting every resource behind this
effort."

[eipgam] 15/7/2012 17:15

Hi Enami... i wonder if you could delete that, I find it somewhat disturbing, but I don't want filter you.

Many Thanks

[enami] 15/7/2012 16:56

"I'm just going out for a haircutI may be some time". CEO OFFICE . . . .

[hvs] 15/7/2012 11:49

Buckles should be sacked and stripped of his shares.

Hw will now cost shareholders more than £ 100 mill.

The Chairman should not be allowed to escape scot free.

£ 21mill for FAILURE is a DISGRACE.

[masurenguy] 15/7/2012 10:45

Another potential massive reward for failure - share price ready to tank - glad I'm not invested here !
'
G4S boss for the high jump over Games fiasco

On Friday, G4S said the Olympics fiasco - the army has been drafted in to meet a shortfall of security staff who should have been provided by the company - would cost it between £35m and £50m....Internal emails obtained by ITV last week appeared to show the company was aware of the problems in April......
If Buckles is forced to leave, he could go with a financial package totalling about £21m. More.......

[marauder7] 15/7/2012 10:12

How long before GFS re-tests its 2008 floor of 160p?

[jon827] 14/7/2012 19:21

thanks for educating me eipgam :)