Securicor slide surprises City: The Investment Column
Wednesday 18 December 1996
Given the encouraging 8 per cent surge in pre-tax profits to pounds 107.4m reported yesterday for the year to the end of September, this is surprising. Hoare Govett raised its forecast for next year to pounds 120m from pounds 116m, pointing to the strong impact of a high street-led recovery on Securicor's diverse businesses, which include collecting cash from retailers, delivering goods to retailers and the mobile phone market.
One reason for the forecast rise in profits is that the group has apparently managed to sustain increases in prices in most of its key businesses. The price war that so damaged the mobile phone market early this year seems to have petered out, while Securicor has resisted matching price cuts in its security businesses.
But the company's earnings are dominated by the 40 per cent stake in Cellnet, which contributed pounds 76.6m to annual profits, an increase of 8.5 per cent. Since the Government blocked the sale of the Cellnet stake to BT last year, it gives investors a dilemma - Securicor is worth much more in pieces than it is as a whole.
The Cellnet stake could net as much as pounds 2bn, against Securicor's current market value of less than pounds 1.6bn. Directors have floated the idea of selling the Cellnet shareholding to an outside bidder, but without BT to bid up the price this is unlikely. Shareholders can hope for the boost from organic growth, but the big prize seems as far off as ever.
- 1 Christmas comes early to Hong Kong, as millions of bank notes spill out onto busy street
- 2 The 'Black Museum': After 150 years, public can visit police’s grisly crime museum
- 4 Vagina canoe artist facing two years in jail defends herself over ‘obscenity’ charges
- 5 The Queen’s speech 2014: Recap and Twitter reaction to Game of Thrones reference
PlayStation and Xbox hacked by Lizard Squad
Antonio Martin shooting: Black teenager may have tried to ambush patrolman, says police officer's lawyer
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
Boxing Day snowfall could push even more bargain-hunters online for Christmas sales
The 'Black Museum': After 150 years, public can visit police’s grisly crime museum
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Alex Salmond has 'broken his word to the Scottish people' says Scottish Lib Dem leader
iJobs Money & Business
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...