G4S on rise as wider market makes gains
Security giant G4S was a standout stock yesterday after the firm revealed that the first six months of the year had gone a lot better than some in the City had predicted.
The company said it expects that adjusted profit before interest, tax and amortisation (PBITA) to be ahead of the market consensus.
Analysts were betting that the figure would reach £159 million in the first half of the year, with earnings per share at 4.3p. G4S also plans to move forward its first-half report to next week.
David Madden, market analyst at CMC Markets UK, noted: “G4S shares are in demand as the company predicts that firsthalf earnings will significantly top analysts’ forecasts.
“The interim results will be brought forward to the week commencing 20 July. The consensus estimate is for profit before interest, tax and amortisation of £159m. Keep in mind the metric last year was £212m.”
Shares in G4S closed up about 9.3 per cent at 130.5p.
Quiz, the Glasgow-headquartered online and high street fashion business, nudged up 0.3 per cent to 6.77p.
It came as the firm said it believes that one of its Leicester-based suppliers has used a subcontractor at the centre of allegations over breaches to the national living wage. The company said it was looking into the issue.
The benchmark FTSE-100 index of Britain’s biggest blue-chip companies closed 80.78 points or 1.3 per cent higher at 6,176.19. Connor Campbell, financial analyst at Spreadex, said: “If not quite at their initial highs, the markets nevertheless remained strong all session.
“The UK [FTSE-100] index was relatively untested; things start to get really busy for the FTSE from Tuesday onwards.
“The monthly GDP reading is set to swing from -20.4 per cent to 5 per cent, while investors will be very interested to see how lockdown favourite Ocado has dealt with intense demand.
“Wednesday’s inflation is then set to hold at 0.5 per cent month-on-month, with Thursday’s claimant count change reading ideally needing to come in below May’s 528,900 to reassure investors.”