G4S Share Price (GFS) - Buy GFS Shares

G4S (London Stock Exchange: GFS) was formerly known as 'Group 4 Securicor PLC'. The principal activities of the Group are providing manned security services and cash services worldwide. These include the government, public authority, financial, retail, and commercial and aviation security services; as well as passenger screening, document and Visa verification, baggage and cargo screening, aircraft guarding, mobile patrols and various specialist services such as visits and patrols of customer sites – sporting events, conferences and exhibitions are just some examples. If you've ever seen an ATM machine being replenished or seen a politician being closely followed by a security guard, you could be right in assuming that they are services provided by G4S PLC.

G4S have continued to acquire affiliate companies since the acquisition of Fidelity Cash Management Services in 2007; since then it has also added Omada Fire & Security Group, the Rock Steady Group of companies, RONCO Consulting Corporation, an 85% share in Progard Securitas and in June 2008, the acquisition of Touchcom, Inc.

2008 was a good year for G4S; in the pre-tax profits for the six months to 30 June, the figure rose to £109.4m, a significant improvement on the £96m posted for the same period in 2007. Some might presume that companies at the mercy of the credit crunch would cut back on security expenditure but the evidence suggests the contrary. With an average annual rise of 15 per cent since 2004, G4S is giving Securitas a real run for its money with a price earnings ratio of 10.8 times in 2009 – whilst Securitas trades on a 2009 11.9 times, G4S shows an 11% organic sales growth to Securitas' 6%.