ABM Extends Heathrow Airport Services - Analyst Blog

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Business services provider ABM Industries Incorporated ( ABM ) recently extended its services at the Heathrow Airport, London, when one of its operating firms received a contract for inter-terminal bus services. The deal failed to impress investors as share prices remained relatively flat at $26.51 as on May 16.

According to the terms of the agreement, Omni Serv, the U.K. subsidiary of ABM-owned company Air Serv, will partner with London Heathrow Airport Limited to provide inter-terminal bus services to connect passengers between the airport's terminals. The five-year contract is an extension of an earlier contract that Omni Serv received from the airport authorities for the Passenger Service Ambassador Program. With these service initiatives, Omni Serv intends to make passengers feel at home and positively impact the traveler experience at every touch-point throughout the airport.

Leveraging the expertise of its sister division, ABM Parking Services, which offers superior shuttle services to travelers in some of the largest and busiest airports in the U.S., Omni Serv has created a niche market in the U.K. This has helped it to earn the confidence of the authorities of the Heathrow Airport and procure two successive contracts, thereby strengthening its position as one of the industry-leading service providers across the globe for the aviation industry.

ABM provides engineering, janitorial, parking, and security services to thousands of commercial, industrial, institutional, and retail facilities. ABM has developed a platform to deliver an end-to-end service model to its clients by realigning its operational structure to an on-site, mobile and on-demand market based structure.

The service contracts are likely to improve the long-term growth prospects and provide high-margin opportunities by enabling it to better deliver end-to-end services to its clients. The company further expects to extend its global footprint as well as strengthen its position in existing markets through both inorganic and organic growth across industry verticals.

ABM currently holds a Zacks Rank #3 (Hold). Other companies in the industry that warrant a look include Green Dot Corporation ( GDOT ), Xoom Corporation ( XOOM ) and Nielsen N.V. ( NLSN ), each carrying a Zacks Rank #2 (Buy).


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ABM , GDOT , NLSN , XOOM

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