G4S reports growth to interest investors

As the world's number one security firm reported an increase in organic growth, Nick Raynor, investment adviser at The Share Centre explains what this means for investors.

"This morning, G4S - provider of transportation services, facilities management and security and protection around the world - reported a rise in overall revenues for Q1 as they increased 4.7% at constant exchange rates, with organic growth up 4%.

"New contract wins, including a deal worth £100m to provide security for the London Olympics and Paralympics Games, means the company can hope to see continued improvement during the remainder of 2011. There appears to be an appetite for G4S's services.

"The secure solutions division was the stronger area of the business, reporting organic growth of 5%. UK and new markets performed well and there was continued improvement in North America and continental Europe.

"G4S can offer investors significant global exposure as only 25% of its revenues are derived from the UK and going forward emerging markets are a key area of the company.

"This is not the most volatile of stocks, which may be a comfort in investors in current market conditions. G4S is an interesting play on economic recovery throughout the globe, predominantly in the US and Continental Europe and the company's growth potential it very attractive. Investors willing to accept the risks associated with a globally diversified company may benefit from a closer look at G4S."