Buy: Regus (RGU) Regus is riding the flexible working wave and its expansion prospects, underpinned by established centres that are clearly delivering, have not gone unnoticed - the shares are up 70 per cent this year, writes Kirsty Green. With good earnings momentum and trading on a not-unreasonable 15 times, Panmure Gordon's 2014 earnings forecast, Regus shares, which are up 13 per cent since our buy tip in June, could deliver further upside. The company continued on its expansion track during the first half of the year, growing its serviced office network by 14 per cent to 1,605 locations. New branches incur heavy start-up costs, but a solid performance from established centres drove healthy earnings growth. Adjusted operating profits rose by 22 per cent to £41.7m, after stripping out costs associated with the MWB Business Exchange acquisition. "We are in the right place at the right time; flexible working is greener, cheaper and it's what people want," says Mark Dixon, chief executive. He believes operating margins can rise further as the company achieves greater economies of scale. Broker Panmure Gordon expects full-year adjusted earnings per share of 8.5p (up from 7.5p in 2012), rising to 12.3p in 2014. Sell: Primary Health Properties (PHP) Primary Health Properties operates in a low-risk sector, but with both earnings per share and adjusted book value on a downward trajectory, its share price looks stretched at 31 times earnings, writes Stephen Wilmot. The company, which owns doctors" surgeries across the country, has increased dividends for 17 consecutive years, but profits have not kept up. Higher debt costs, slowing rental growth and a £68.5m equity raise in May took their toll on adjusted earnings per share, which fell 21 per cent to 4.8p in the first half of the year - 52 per cent of the payout. Chief executive Harry Hyman believes the final six months of 2012, when cover was 45 per cent, marked the trough. Acquisitions totalling £61m so far this year will boost second-half numbers, replacing low-yielding cash with properties returning about 5 per cent after management fees. With the NHS in a state of chaotic reorganisation, the market has remained robust but not supportive. Rent reviews during the period showed an average uplift of 2.3 per cent - down from 2.4 per cent last year and a historical norm of 3-4 per cent. Broker Investec Securities has downgraded its adjusted earnings per share forecast to 10.9p for the full year, and does not expect full dividend cover before 2016. G4S has become a turnround story under its new chief executive, writes Kirsty Green. But as with any turnaround story, there's always a worry that further skeletons could be lurking in the cupboard. The security company appears to be making a valiant attempt to get its house in order, so with the shares rated at a 10 per cent discount to the sector average price-earnings ratio, we take a deep breath and upgrade our advice to hold. G4S announced measures to shore up its balance sheet with its first-half results, as management attempts to wipe the slate clean following a series of recent shocks - a botched Olympics contract, profit warning, top management changes and an investigation into electronic tagging contracts. The security group is placing 140.9m new shares, representing up to 9.99 per cent of existing share capital. It's also disposing of two businesses for combined cash proceeds of around £100m. G4S also announced restructuring programmes for the UK, Europe and Ireland businesses in an attempt to improve profitability. Recently appointed chief executive Ashley Almanza says that 2013 will be "a year of consolidation." Broker Citi has cut its full-year earnings per share estimate by 15 per cent to 16.5p (20.8p in 2012), with 17.7p forecast for 2014. Sector focus: retailers UK shoppers have gone on a spending spree this summer, driven by a combination of factors: the warm weather, Murray's Wimbledon victory, the Ashes success and the birth of the country's future king, writes Julia Bradshaw. Figures from the Office for National Statistics confirm that the value of retail sales grew a mighty 5.1 per cent in July, compared with 2.9 per cent growth a year ago. But despite these tailwinds, the likelihood is that consumer spending will remain subdued for some time. However, provided well-run companies can continue to hit their earnings targets and invest in their businesses, share prices should continue to outperform the wider market. Many UK retailers such as Supergroup , Next , Sports Direct and N Brown are exposed to faster-growing overseas markets, too, helping counter slower domestic growth. A recovery in the housing market, however shortlived, could also drive demand for DIY goods, so companies that have been struggling for some years, such as B&Q owner Kingfisher and Home Retail Group , which runs Homebase and Argos, might benefit. Also, while some shops are struggling with e-commerce, others, such as Next, Sports Direct and Dunelm , are winning out, while a handful are relatively internet-proof. Topps Tiles , for instance, uses its website primarily to showcase its products rather than transact sales, as customers prefer visiting stores to buy. N Brown has only ever been catalogue and web-based, and Majestic has always operated a delivery model. Argos's well-established distribution network means it could prosper if its revamp lures customers. Mothercare is undergoing an overhaul, and if it can continue to meet targets and lure shoppers back through the doors, the shares should enjoy further upside. Supergroup should, too. It's had an astonishing run in the past year and, with more shops set to open overseas, a much-improved womenswear range and hefty cash pile to fund growth, there should be more to come.