Services

Compass quiet on strategic revamp

18 May 2005

The troubled caterer has thrown a sop to shareholders with a modest dividend rise, but hasn't spelt out its plans to turn itself around. If Bailey, the CEO, needs a little more time to produce a clear plan, so be it. But when it comes, it had better be good.

Mackay to quit as Compass chairman

9 May 2005

Mackay's departure paves the way for some muchneeded fresh thinking at the UK catering group. Compass needs to convince investors it has a strategy to deal with falling margins and inadequate cashflow.

Lazard partners don’t make out like bandits

11 Apr 2005

Strip out Wasserstein and they don t just collect less at the IPO than Greenhill s partners did. They re also worse off than Cazenove s. That s as it should be. The partners mortgaged the firm buying it from its owners. They ll have to earn that goodwill back with their sweat.

Compass Group’s board deserves closer scrutiny

8 Apr 2005

Two profit warnings have highlighted the unorthodox corporate governance structure at the world's largest catering company. While Compass was on track, investors overlooked the unusually cosy setup. But if the rough patch continues, they should demand action.

ISS bondholders may get a reprieve

7 Apr 2005

The Danish group s bond prices plunged after it received a leveraged buyout approach. But LBO lending banks may not want ISS s shorterdated bonds to remain outstanding. The company may have to tender for them.

ISS bid won’t trigger a support services goldrush

30 Mar 2005

The E3bn bid by Goldman and Sweden's EQT for the Danish support services group has raised hopes of further buyouts in the sector. But the deal is likely to prove a oneoff. As the collapse in ISS bonds shows, support services companies are difficult to gear up.

SunGard taken over in $11.3bn club deal

28 Mar 2005

Seven privateequity firms have banded together for the biggest LBO since RJR. This raises questions for their investors. Some, like Calpers, invest with more than one of these funds. To make this work, the funds will need to get bigger and the clubs smaller.

Bunzl demerger makes sense

28 Feb 2005

The group s plan to spin off its cigarettefilter business to shareholders caps more than a decade of shrewd strategy. Now comes the harder part. Unless the drug can be reintroduced, Elan faces a troubled future. But the odds look low.

Compass shares plunge south

9 Sep 2004

The British caterer has warned on profits citing a whole host of factors from higher distribution and labour costs to poor trading. The surprise warning raises questions about the management's grip on costs.

Rentokil not going anywhere fast

17 Aug 2004

Tension appears to be building, as former chairman Clive Thompson is rumoured to be mulling a bid for the UK services group. But the company is unattractive bait for a takeover.

Hands on Shanks

26 May 2004

After swooping at the last minute to break up Pennon's acquisition of Shanks, critics are saying Guy Hands has overpaid. But industrial synergies unusual in a private equity deal mean Hands' Terra Firma group may still make the deal add up.

Rentokil’s Mr 20% exits on sour note

19 May 2004

Sir Clive Thompson made a religion of hitting profit targets during his 21 years at the helm of the pest control group. So there is a certain rough justice that he has been forced out on a profit warning.

Adecco talking with banks to delay results again.

28 Apr 2004

The Swiss staffing company gives the impression of a company that has no clue as to what is going on in its accounting investigation. Or worse, the company is repeatedly refusing to disclose what it does know.

Chubb profit warning hits recovery hopes

22 Apr 2003

The British security group had a terrible start to the year. It looks like it might take a while to dig itself out of its hole. Although the reported approach from UTC doesn't look terribly generous, Chubb's shareholders could be forgiven for wanting out.

Britain’s cyclical deficit is growing

7 Apr 2003

This week, UK finance minister Gordon Brown will defend a rising deficit by showing it complies with his "golden rule". But the rule is flawed. It is allowing a structural deficit worse than France's or Germany's to develop. Brown must spend less or tax more.

An investment upside to Germany’s problems

17 Feb 2003

On the one hand, Germany s problems are dragging down Europe. On the other, they mean lower interest rates through the region. These are already negative, in real terms, in some peripheral Eurozone countries. They are about to get more negative still.

Brambles plunges 30% on pallets profit warning

21 Nov 2002

Last year s unscrambling from GKN was supposed to shine a flattering light on Brambles s apllets business. It has revealed flaws instead. The group is even closer now to dropping out of the FTSE.

Brambles plunges 30% on pallets profit warning

21 Nov 2002

Cap Gemini gets to grip with costs

31 Oct 2002

The French IT services firm has calmed fears that it won t make it through the cycle without raising capital. But the shares already discount part of the next upturn.

Cap Gemini gets to grip with costs

31 Oct 2002