Group 4 Securicor (now G4S) was formed out of the 2004 merger between the UK 's Securicor and the Dutch Group 4 Falck. The merger has allowed cost savings to be made but the company has also maintained impressive organic growth in its businesses, despite the distractions of the merger. We expect both of these factors to continue, and the company is likely to start making bolt-on acquisitions to supplement earnings growth now that the merger is complete. The balance sheet is strong and the company has committed to lowering its dividend cover which should generate healthy dividend growth going forward. The stock is cheap on a P/Sales basis and offers a solid growth in cash, earnings and dividends as it operates in a defensive, non-cyclical industry.
| Sedol |
Type |
Price |
Date |
|
B01FLG6 |
Buy |
£ 1.785 |
08/10/2008 |
|
