G4S's full-year results failed to please the market on Wednesday as headlines focused on the impact of one-offs, such as its failing at the London Olympics, but Panmure Gordon has reiterated its 'buy' rating and 320p target price for the security firm, saying that its underlying performance was strong.

The broker admitted that the figures "look a bit messy" due to discontinued items occurring in both 2011 and 2012.

However, the 6.9% organic growth (which excludes the Olympics) was stronger than forecast and the 7.1% adjusted operating margin was also encouraging, the broker said.

The final dividend of 9.0p per share, up 5.0% year-on-year, was also ahead of estimates.

Panmure said: "We think the overall organic growth and margin outlook is favourable, especially given some headwinds evident in the business."

The broker concluded: "Overall while the shares have had a good run of late, we are likely to maintain a positive stance on the basis that the valuation remains undemanding particularly given the re-rating seen elsewhere in the outsourcing sector," the broker said.

Shares were down 1.82% at 301.9p by 10:56 on Wednesday morning.

BC

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