Thursday newspaper share tips: G4S, Prudential

Three years after rising to the helm of G4S, company chief Ashley Almanza is still promising investors he will fix the balance sheet and shrink a bloated cost base, the Financial Times's Lex column said.

During that time, net debt has continued to rise, despite his decision to sell £280m worth of businesses and now stands at £1.8bn.

Indeed, even with the new £250m of asset disposals management is planning and the security outsourcing specialist's average annual free cash flows from operations of roughly £160m the success of its deleveraging is not yet guaranteed.

Its top directors believe the dividend lever need not be pulled to right the situation, but if they do not succeed in bringing debt down soon, they may want to reconsider that option, Lex concluded.

At 193% Prudential's solvency capital ratio smacks of extreme caution, more so given the fact that capital held for its Asian businesses is not included in that tally, The Times's Tempus said.

The company aims to capitalise on the growing middle class in the Far East, the 75m baby boomers in the US and a similarly ageing British populus.

Its operations in those geographies did nicely in 2015 with M&G - which is more heavily invested in fixed income than many of its rivals - the weak under-belly. Total funds under management were down by 7% to £246.1bn and profits flat.

Nonetheless, "the Pru has a good record for increasing profits through the financial crisis, despite the odd upset."

Its strong capital p[osition and prospects for Asia also make its stock woth a purchase.

"Buy long-term," Tempus said.