G4S is slowly changing and its exposure to the UK (about 15 per cent of revenues) and to the British government (about 5 per cent) will continue to dwindle. America is by far its biggest market. It seems on track to get debt down further this year to 2.5 times ebitda profits.
Expected earnings per share this year of 19p put the company on a multiple of 17 times, while it yields 2.8 per cent. After the strong share price performance of the last year, further progress will be tougher, but Mr Almanza is beginning to prove he can deliver. If and when he hits his leverage target, he can begin to lift the dividend, which should give the shares some fresh impetus.
G4S is