Resolute Mining Share Discussion Threads

[tole] 07/9/2005 11:14

AGM Statement

RNS Number:9387Q
Reliance Security Group PLC
07 September 2005

AGM Statement

At the Company's Annual General Meeting today, Brian Kingham, Chairman,
commenting on current trading, said:

"In the first few months of this year our businesses have performed in line with
our expectations.

In security services, we believe that market conditions will remain challenging
in the period leading up to industry regulation, due to take effect in March
2006, but that the position will improve in the long term. The Company is well
placed to benefit from the expected changes in the nature of security provision
in the UK, following regulation.

The large and dynamic facilities management and business process outsourcing
market offers significant opportunities for Reliance to grow, particularly in
the public sector and we are continuing to invest to drive future growth.

When we announced our preliminary results at the end of June, we indicated our
intention to return approximately #10 million in cash to shareholders, in
addition to the final dividend. We expect to finalise proposals for this within
the next few weeks."

Notes to Editors
Reliance is an established market leader in the provision of contract security,
facilities management and support services and in business process outsourcing.
Reliance employs over 12,000 people from a network of offices throughout the UK.

[tole] 07/9/2005 08:13

KBC Peel Hunt have a note out today and are looking at an optimistic fair value today at 800p with improved margins based on price increases :)

[tole] 06/9/2005 11:36

Inching upwards slowly after the divi - AGM tomorrow, maybe some good news to come out...

[tole] 31/8/2005 20:56

Cheers 8ball will do, likewise SMC - results ahead and reports monday, def worth a look as undervalued imo.

[8 ball] 31/8/2005 20:51

Take a look at RDP not bought yet but looks a good earner in time.

[tole] 31/8/2005 20:33

Correct - 14.5p to be paid 23rd sept.

[8 ball] 31/8/2005 20:21

Todays drop due to divi ?

[tole] 31/8/2005 20:07

Yep would be nice 8ball - especially if one of them was mine :)

[tole] 31/8/2005 20:06

Can see this form of mobile security contract becoming ever more popular, especially with todays society...


Security firm to tackle arson
31 August 2005

A COUNCIL has hired a private security firm to protect community centres and parks from arsonists.

The move by Stevenage Borough Council comes after the dramatic rise in arson attacks in the town.

Reliance Security has been brought in to provide mobile security teams to patrol community facilities at night.

The security guards carry identification and are using clearly marked vehicles.

A council spokesman said: "The benefit of this increased security has already been seen. In the early hours of the morning on Friday, August 19, Reliance Security contacted police about an incident at King George V playing field pavilion. Subsequently the police took two suspects into custody."

The security arrangements are just part of a number of initiatives which the council, police and fire service have put in place to tackle arson in Stevenage.

Risk assessments are being carried out on all community buildings to ensure hazards are identified and minimised.

The three agencies are regularly sweeping the area to find and remove potential arson risks.

Executive councillor for community safety, Bob Clark, said: "We will continue our work with the police and fire service to find long-term solutions to this particular criminal activity.

[8 ball] 31/8/2005 20:05

I think they should pull 10 names out of a hat.
1 million to each?????

[tole] 31/8/2005 19:06

AGM on 7 September 2005 - (next weds) might hear some news then on the 10m cash payout.

[tole] 26/8/2005 19:38

Last few days to buy in for the divi..

EX DIV on Weds 31/8 - for 14.5p. Giving a total yield of over 3.5%

Still awaiting news here on the £10m return of cash...

Small tick up and hopefully rising in a short term uptrend technicals turning on the chart -

PERFORMANCE SUMMARY (18/08/2005)

Last Price: 525
Since Dec. 31st: 24.2604%
Last Month: -9.2873%
Last Week: -1.4085%
Reference Index: FTSE 100
Correlation: 0.0406
Support: 497.5
Resistance: 615

[tole] 15/8/2005 17:35

Better volume today and some nice chunky buying.

[tole] 14/8/2005 14:55

Off the KBC Peel Hunt note from 30 Jun. Seems they feel the same way about the undemanding PER and the nice payout to come ;)

The big issue of how new regulations will impact on profitability continues to overhang, but in the meantime RSG is generating ever more cash and building other profitable businesses.

We upgrade our FY05/06E slightly to reflect better F.M. business, but results will still show a decline on this year. The upgrade is despite the return of cash to shareholders which given an undemanding PER could be a straight gain to investors.

Net cash of £27.7m is above our £20m expectation, such that the £10m return of cash to shareholders will probably be a straight gain to investors.

[tole] 12/8/2005 07:43

Saying that I havent had a look at sectorguard for a while, might be worth a little look, just spotted todays tip in investors chronicle -

Though of course still see good value to be had here. :)

Investors Chronicle
Shares with huge potential: SUPERSCAPE, STANELCO, NXT, ITM POWER, TOROTRAK,
SERVICEPOWER, PHYTOPHARM, FUTURAGENE - TIPS - LARGE COMPANIES: ROYAL BANK OF
SCOTLAND (buy), AVIS EUROPE (sell), MINERVA (buy); TIPS - SMALLER COMPANIES:
STANLEY GIBBONS (buy), ANGLO ASIAN MINING (buy), DOBBIES GARDEN CENTRES (buy);
TIPS - UPDATES: ROLLS-ROYCE (good value), NEXT FIFTEEN COMMUNICATIONS (keep
buying), FRIENDS PROVIDENT (buy), MONTERRICO METALS (buy), SECTORGUARD (good
value), AIR PARTNER (good value)

[tole] 11/8/2005 21:34

Am in this one too so probably biased, but have had a look at SGD late last year, but far too much ramping going on with it for my liking, but did rise well if I remember. Difficult at the time to work out how much news was already in the price so left it well alone. HAvent looked since so not sure how its been doing now.

A broker friend passed this on to me a while back when it was below the 5 quid level and been in it up to the 6 quid level and right back down again, will hold out for my 7 quid target. Do like this sort of stock especially with the potential special payout too.

Had a small mention in Growth Company Investor recently too -

Spread-betting, by Vince Stanzione
03/08/2005

Security in stocks
As a provider of security guards with major contracts covering airports, Government buildings and private companies it's not surprising that the chart for Group 4 Securicor is looking positive. Spending by both private and public sectors will need to rise in the coming years and Securicor will see some of this money. Expect to see more airport-style security in public buildings in coming months. Another smaller company to look at is Reliance Security Group.

Shares that I would be careful of at present are those companies with commercial property exposure, especially in London. Hammerson (which has had a great run and is the owner of Brent Cross Shopping Centre, as well as offices in Docklands and the City) is starting to show fatigue and could be a possible short trade. Land Securities is another share that has done very well in the last few years but is also starting to find resistance.

Until next month, here's wishing you lots of success with your trading.

Vince Stanzione has produced a home study course to teach private investors how to benefit from trading financial Spread Bets and Fixed Odds priced at £347. For more information please visit www.fintrader.net or telephone
01908 330748 (24hrs).

[8 ball] 11/8/2005 21:17

We had an investment club meeting on Monday and another similar company SGD was mentioned.
You also get a lot of shares for your money, would be interested which you think is the better investment?
I picked this one.......

[tole] 11/8/2005 21:13

8Ball - do agree, but can make the share quite illiquid based on shares in issue, thus large trades affecting the price a lot more than usual. Also bares down on the cuurent price if there is hints or suspicions of a large stake being dumped by the director. Though can be good if is forced to relaese a stake due to institutional demand ;) Still more than happy to hold and personally see a new uptrend continuing here - 700p target.

[tole] 11/8/2005 21:06

Cheers 8ball - interesting read, most notably something to my own thinking which I believe will seriously underpin the shareprice from here on -

'The industry association estimates that regulation could bring down the number of security firms from 2,100 now to around 200 by the end of next year.
This is just guesswork, but it looks pretty clear that a large player in the market with established training systems and a good reputation could well benefit from the move to regulation.'

Though no mention of the special 10m cash payout which is shortly to be announced, that makes this interesting to me. Big payout to come soon should attract the divi hunters since I believe this is still to be realised in the current price ;)

A 3.5% annual dividend at todays price which grew by over 10% on last year is not to be sniffed at in my eyes...

[8 ball] 11/8/2005 20:58

Why does the 70% holding by the Chairman put off investors.
Two of my best investments this year have been with Safeland and GSC properties.
Both had large holdings by Directors.
I find it reassuring and you get the benefit of the lack of shares floating around

[8 ball] 11/8/2005 20:39

Reliance Security Group plc
The company and its environment
Reliance is a market leader in the provision
of security services in the UK, with over
12,000 employees. The historical core of
the business is its manned guarding division,
burly men in bulky uniforms standing
at the entrance to buildings and so forth.
However the company has also developed a
very significant business in the provision of
advanced facilities management and business
process outsourcing (BPO).
You would think that since September 11th
and with more recent events such as the
Madrid bombing and the London bombs,
not to mention the fact that crime rates
everywhere are soaring, running a security
company would be a licence to print your
own money. Sadly it isn't. Manned guarding
is a business which has low barriers to
entry, it is a simple service to provide and
anyone can set up a business doing it any
time. The result is that even the best
providers in the industry, such as Reliance,
have faced very strong pricing pressure.
Reliance has made a good effort to set itself
apart from the crowd and counter this
problem. It has concentrated on developing
sophisticated remote monitoring and electronic
security capabilities and has also
worked to take on complex jobs that rely on
high levels of professionalism, including one
guarding the Gloucestershire Police HQ.
Finally it has diversified with the move into
facilities management, not just guarding
other people's buildings but taking over
general building maintenance as well as
catering, cleaning and procurement, running
other people's office buildings for
them. This market is estimated to be worth
around £60bn in size as opposed to £3bn
for traditional security services so it should
provide the firm with a solid new expansion
route.
One unsettling issue on the horizon is that
of, as ever, government regulation. The
government has decided that it will start
regulating individual guards from March
2006. There will be some qualification
requirements and each guard will need to
be licenced and trained. This will all present
significant extra costs for the industry, and it
also threatens the stability of the existing
workforce, who might not all make it
through the procedures. This has not
helped the financial outlook for security
companies and it has also unsettled
investors in Reliance's shares.
The 2005 results, announced in June, were
not too bad. Turnover rose 6.1% to
£310.3m and earnings per share excluding
exceptionals increased to 47.4p. The facilities
management division produced strong
organic growth, operating profit (preexceptionals)
rose to £8.3m from £4.3m in
the previous year, but turnover and profit
both fell in the Security Services Division,
with operating profit down to £6.8m from
£9.1m.
Why buy the shares?
Given that we live in an environment where
everyone is increasingly concerned about
their security you would think that everyone
would be queuing up to buy the shares
but they aren't. There is a general view that
regulation is squeezing the business, and
that the shares are therefore best avoided.
But that view may well be wrong.
Regulation is definitely affecting the
Security Services division, but it should start
passing through the pain barrier next year.
It will also cut down on the competition.
The industry association estimates that regulation
could bring down the number of
security firms from 2,100 now to around
200 by the end of next year.
This is just guesswork, but it looks pretty
clear that a large player in the market with
established training systems and a good reputation
could well benefit from the move to
regulation. It is also worth noting that
Reliance High-Tech has been performing
well within the security division, and offers
better growth prospects and margins than
manned guarding. Support for Reliance and
its peers is also coming from an unlikely
source; the government has started to refer
to the Wider Policing Family, perhaps in
tacit acknowledgement they can't cope
alone with the security and crime prevention
needs of 21st Century Britain and may
need more and more help from the likes of
Reliance.
Past performance should not be seen as
an indication of future performance
RELIANCE SECURITY GROUP PLC
KEY DATA
Sector: .................................... Support Services
Share Price (02/08/05): ............................ 584p
Current Yield: ......3.27% (variable and not guaranteed)
P/E Ratio: ................................................ 12.12
Year Low/High: .............................. 420p/622.5p
Stockquote Code: ...................................... 3803
EPIC Code: .................................................. RSG
Source: Pro Quote continued on page 4
The Facilities Management and outsourcing
division is also growing fast, despite hiccups
in the wake of a well-publicised loss of a few
prisoners in Scotland. Providing support
services, from cooking lunch for policemen
to secure transfer of prisoners to courts,
offers more good future possibilities for
Reliance.
The recent results announced one final
piece of interesting information. Reliance
intends to make the move to a cheaper and
less onerous AIM listing. Some have suggested
that this may offer tax advantages to
Chairman Brian Kingham if he ever decided
to sell his 70% stake, but it will offer the
same tax advantages to the rest of us. Last,
but not least, Reliance's shares look good
value to us. It had some £27m in cash at the
year-end, and raised its dividend by over
10%. The current yield is not enormous at a
little over 3%, but a P/E of 12.12 times for
a company with recovery and growth
prospects add up to an investment you
might want to tuck (or should that be lock?)
away in your portfolio.
continued from page 3

[tole] 11/8/2005 20:36

Cheers 8ball appreciated if you can. :)