G4S making progress with turnaround, says Hargreaves Lansdown
G4S is "back on firmer ground", according to Hargreaves Lansdown Stockbrokers, which struck a note of cautious optimism about the security services company on Tuesday.
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Shares in G4S were up 2.7% at 298.7p in morning trade after the group reported a pre-tax profit of £148m for 2014, up from a loss of £190m previously and ahead of expectations.
The increase followed the implementation of a restructuring programme after a run of major contract problems hit its profits and reputation.
"The group’s turnaround continues to progress," said Hargreaves equity analyst Keith Bowman.
"Underperforming businesses are being sold or discontinued, contract retention rates have stayed strong, whilst exposure to both expanding Emerging Markets and the recovering North American economy is proving beneficial. A series of efficiency programmes is being pursued, while further turning the page on its Olympics fiasco, risk and contract management skills continue to be sharpened."
While a full recovery is not yet in sight, Bowman said: "The new management team is making its mark, with analyst consensus opinion now positive ('buy') in tone."