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Share Name Share Symbol Market Type Share ISIN Share Description
G4s Plc LSE:GFS London Ordinary Share GB00B01FLG62 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 244.80 245.00 245.10 0.00 00:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 7,758.0 27.0 -5.9 - 3,798

G4S PLC G4S plc UK DK : Half-yearly report

28/08/2012 7:00am

UK Regulatory (RNS & others)



 
TIDMGFS 
 
28 August 2012 
 
G4S plc 
Half yearly results announcement for the six months ended 30 June 2012 
 
Developing markets and outsourcing trends continuing to drive underlying growth 
despite challenging economic environment 
 
                                                   H1 2012 Underlying*   H1 2011 
=------------------------------------------------------------------------------- 
Turnover                                            GBP3,903m       +5.8%  GBP3,630m** 
=------------------------------------------------------------------------------- 
Organic growth                                       +6.8%       +5.1%     +4.5% 
=------------------------------------------------------------------------------- 
PBITA***                                            GBP236m**                GBP236m** 
=------------------------------------------------------------------------------- 
Operating margin                                      6.0%        6.2%    6.5%** 
=------------------------------------------------------------------------------- 
Adjusted EPS                                        9.8p**                9.8p** 
=------------------------------------------------------------------------------- 
Recommended interim dividend per                     3.42p                 3.42p 
share 
=------------------------------------------------------------------------------- 
Cash conversion                                        83%                   60% 
 
 
* excluding Olympic and Paralympic Games contract 
**at constant exchange rates and adjusted for discontinued businesses and 
exceptional items 
***see page 4 for definition of PBITA 
 
Excluding  the Olympic Games contract, sales up 5.8% and improved organic growth 
of 5.1%. Adjusted EPS maintained at 9.8p 
  * Organic  growth of 10% in developing markets with revenue of  GBP1,191m (31% of 
    group total and targeting 50% by 2019) 
  * Group  margin excluding exceptional  items is lower  at 6.0% (6.2% excluding 
    the  Olympics Games revenue) due to the challenging US government market and 
    UK contract phasing 
  * On track to achieve annual cash conversion target of 85% 
 
Olympic  and  Paralympic  Games  contract  loss  of   GBP50m  provided  for  as  an 
exceptional item in H1 
  * Contract  review underway and expected to be completed during second half of 
    September 
 
Continued focus on business improvement 
  * Service  excellence  centres  established  for  all  core  services:  manned 
    security,  cash solutions and care  & justice services -  part of a two year 
    programme to support gross margins and profit improvement initiatives 
  * Restructuring  leading to a headcount  reduction of 1,100 positions and  GBP30m 
    annualised  savings, of which  related costs of   GBP24m have been  taken as an 
    exceptional  item in H1,  a large proportion  of which relate to Continental 
    Europe. Up to  GBP10m further costs are expected in H2 
 
Security  remains  core  to  global  strategy  and  continues  to provide growth 
opportunities 
  * Strong  global contract pipeline of  GBP3.8bn  per annum across a diverse range 
    of  sectors including the strongest visible pipeline in US commercial sector 
    on record 
 
Nick Buckles, Chief Executive Officer, commented: 
 
"We  were deeply  disappointed that  we had  significant issues  with the London 
2012 Olympics  contract and are very grateful to the military and the police for 
their support in helping us to deliver a safe and secure Games. 
 
The overall business has performed well in achieving a similar underlying profit 
as  the first  half of  last year  despite economic  challenges, particularly in 
Europe,  and weakness in the US government market.  Underlying organic growth in 
the first half has improved to over 5% overall driven by a strong performance in 
developing markets which grew by over 10%. 
 
We  continue  to  see  good  opportunities  from  outsourcing  around  the world 
particularly  from governments looking to improve quality of services and reduce 
costs  and we believe that, with our long-term track record, we will continue to 
play a major role in this sector. 
 
The  breadth of  our portfolio  in 125 countries  continues to  present many new 
growth  opportunities. Our  market leading  businesses, broad  customer base and 
 GBP3.8bn  per annum contract  pipeline give us  confidence in the  outlook for the 
Group." 
 
 
For further enquiries, please contact: +44 (0) 1293 554400 
 
Nick Buckles                        Chief Executive Officer 
 
Trevor Dighton                      Chief Financial Officer 
 
Helen Parris                 Director of Investor Relations 
 
 
Media enquiries: 
 
Adam Mynott                Director of Media Relations          +44 (0) 
1293 554400 
David Allchurch                Tulchan Group                         +44 (0) 
20 7353 4200 
High resolution images are available for the media to view and download free of 
charge from www.vismedia.co.uk. 
 
 
Notes to Editors: 
G4S  is the  world's leading  international secure  outsourcing solutions group, 
which  specialises in  outsourced business  processes and  facilities in sectors 
where security and safety risks are considered a strategic threat. 
 
G4S  is  the  largest  employer  quoted  on  the London Stock Exchange and has a 
secondary stock exchange listing in Copenhagen.  G4S has operations in more than 
125 countries  and  657,000 employees.   For  more  information  on  G4S,  visit 
www.g4s.com. 
 
Presentation of Results: 
A presentation to investors and analysts is taking place today at 0830hrs at the 
London Stock Exchange. 
 
Webcast 
http://view-w.tv/p/707-803-11617/en 
 
 
Telephone Dial-in Facility 
 
The details for the telephone dial-in facility are as follows:- 
 
Denmark Toll Free : 8088 8649 
Standard International Access : +44 (0) 20 3003 2666 
UK Toll Free : 0808 109 0700 
USA Toll Free : 1 866 966 5335 
 
Password: G4S 
 
Replay Details 
 
To listen to a replay of the presentation which will be available for 7 days 
after the event: 
 
Denmark Toll Free : 8088 7109 
Standard International Access : +44 (0) 20 8196 1998 
UK Toll Free : 0800 633 8453 
USA Toll Free : 1 866 583 1035 
Access PIN: 8732477 
FINANCIAL SUMMARY 
 
Results 
 
The  results  which  follow  have  been  prepared  under International Financial 
Reporting Standards, as adopted by the European Union (adopted IFRSs). 
 
Group Turnover 
 
+-----------------------------------+------+------+ 
|Turnover of Continuing Businesses  |H1 12 |H1 11 | 
|                                   |      |      | 
|                                   |     GBPm|     GBPm| 
+-----------------------------------+------+------+ 
|Turnover at constant exchange rates| 3,903| 3,630| 
+-----------------------------------+------+------+ 
|Exchange difference                |     -|    56| 
+-----------------------------------+------+------+ 
|Total continuing business turnover | 3,903| 3,686| 
+-----------------------------------+------+------+ 
 
 
Turnover increased by 5.9% to  GBP3,903 million or by 7.5% at constant exchange 
rates.  Organic turnover growth was 6.8%. 
 
 
 
 
 
+----------------+------+-------------+----------------+-----------------+-----+ 
|Organic Turnover|Europe|North America|       Developed|       Developing|Total| 
|Growth      incl|      |             |         Markets|          Markets|     | 
|Olympic    Games|      |             |                |                 |     | 
|contract *      |      |             |                |                 |     | 
+----------------+------+-------------+----------------+-----------------+-----+ 
|Secure solutions|    8%|           4%|              7%|              10%|   8%| 
+----------------+------+-------------+----------------+-----------------+-----+ 
|Cash solutions  |   -1%|           7%|             -1%|              11%|   3%| 
+----------------+------+-------------+----------------+-----------------+-----+ 
|Total           |    6%|           5%|              6%|              10%|   7%| 
+----------------+------+-------------+----------------+-----------------+-----+ 
 
* Calculated to exclude acquisitions and disposals, and at constant exchange 
rates 
 
+----------------+------+-------------+----------------+-----------------+-----+ 
|Organic Turnover|Europe|North America|       Developed|       Developing|Total| 
|Growth      excl|      |             |         Markets|          Markets|     | 
|Olympic    Games|      |             |                |                 |     | 
|contract *      |      |             |                |                 |     | 
+----------------+------+-------------+----------------+-----------------+-----+ 
|Secure solutions|    3%|           4%|              4%|              10%|   6%| 
+----------------+------+-------------+----------------+-----------------+-----+ 
|Cash solutions  |   -1%|           7%|             -1%|              11%|   3%| 
+----------------+------+-------------+----------------+-----------------+-----+ 
|Total           |    2%|           5%|              3%|              10%|   5%| 
+----------------+------+-------------+----------------+-----------------+-----+ 
 
* Calculated to exclude acquisitions and disposals, and at constant exchange 
rates 
 
 
Group Profit 
 
+---------------------------------------+------+-----+ 
|PBITA * of Continuing Businesses       |H1 12 |H1 11| 
|                                       |      |     | 
|                                       |     GBPm|    GBPm| 
+---------------------------------------+------+-----+ 
|PBITA at constant exchange rates       |   236|  236| 
+---------------------------------------+------+-----+ 
|Exchange difference                    |     -|    4| 
+---------------------------------------+------+-----+ 
|Total continuing business PBITA        |   236|  240| 
+---------------------------------------+------+-----+ 
|PBITA margin at constant exchange rates|  6.0%| 6.5%| 
+---------------------------------------+------+-----+ 
 
*  PBITA  is  defined  as  profit  before  interest,  taxation,  amortisation of 
acquisition-related intangible assets, acquisition-related costs and exceptional 
items 
 
PBITA  was maintained at   GBP236 million but  decreased by 1.7% at actual exchange 
rates.   The PBITA margin was 6.2% excluding  the Olympic Games contract revenue 
and 6.0% including the contract. 
 
 
 
 
Cash Flow and Financing 
 
 
+--------------------------------------------------+------+------+ 
|Cash Flow                                         |H1 12 |H1 11 | 
|                                                  |      |      | 
|                                                  |     GBPm|     GBPm| 
+--------------------------------------------------+------+------+ 
|Operating cash flow                               |   197|   143| 
+--------------------------------------------------+------+------+ 
|Operating cash flow / PBITA (excluding associates)|   83%|   60%| 
+--------------------------------------------------+------+------+ 
 
Operating  cash flow, as  analysed on page  26, was  GBP197 million  in the period, 
representing 83% of PBITA.  Net cash invested in current year acquistions was  GBP6 
million.   Net debt at the end of the period, as analysed on page 25, was  GBP1,683 
million (December 2011:  GBP1,616m). 
 
 
 
 
 
 
Adjusted earnings per share 
 
 
+-----------------------------------+-----+------------------------------+-----+ 
|Adjusted earnings per share        |H1 12|    H1 11 at constant exchange|H1 11| 
|                                   |     |                         rates|     | 
|                                   |     |                              |     | 
|                                   |     |                              |     | 
|                                   |    GBPm|                             GBPm|    GBPm| 
+-----------------------------------+-----+------------------------------+-----+ 
|PBITA from continuing operations   |  236|                           236|  240| 
+-----------------------------------+-----+------------------------------+-----+ 
|Interest (before pensions)         | (50)|                          (46)| (46)| 
+-----------------------------------+-----+------------------------------+-----+ 
|Tax (before pensions interest)     | (40)|                          (42)| (43)| 
+-----------------------------------+-----+------------------------------+-----+ 
|Minorities                         |  (9)|                          (10)| (10)| 
+-----------------------------------+-----+------------------------------+-----+ 
|Adjusted profit attributable to    |  137|                           138|  141| 
|shareholders                       |     |                              |     | 
+-----------------------------------+-----+------------------------------+-----+ 
|Average number of shares (m)       |1,404|                         1,405|1,405| 
+-----------------------------------+-----+------------------------------+-----+ 
|Adjusted EPS (p)                   |  9.8|                           9.8| 10.0| 
+-----------------------------------+-----+------------------------------+-----+ 
 
 
Adjusted earnings per share, reconciled to basic earnings per share on page 24, 
was  in line with prior year at constant exchange rates and down by 2.0% against 
prior year at  actual exchange rates. 
 
London 2012 Contract 
 
Contract Update 
 
In  December  2011, we  signed  the  contract  to  provide  an enlarged security 
workforce  for  the  Olympic  and  Paralympic  Games.   The  demand  profile for 
provision  of the security workforce built from just a few hundred people at the 
start  of 2012 to  10,400 during the  peak period  in early  August.  All of the 
roles  required specific classroom  and on-the-job training,  with a significant 
number  of  the  roles  being  specialist  in  nature  and  requiring 40% of the 
workforce to be trained in additional skills. 
 
Our  primary focus for  July and August  to date has  been to work alongside the 
military  and police  to deliver  a safe  and secure  Games.  We  are pleased to 
report  that security  has remained  one of  the highest  ranked aspects  of the 
Olympic Games in daily visitor surveys conducted by the organising committee. 
 
Although   the  complex  recruitment,  training,  screening,  accreditation  and 
deployment   process  proved  very  challenging,  more  than  14,000 staff  were 
recruited,  trained and deployed.  An additional 5,000 people completed Security 
Industry  Authority (SIA)  training and  obtained a  SIA licence.  We had around 
8,000 people  on the ground  at Olympic venues  during the peak  periods and, in 
many  cases, military  personnel were  able to  withdraw from specific sites and 
reduce the overall number of deployed military personnel across the venues. 
 
We  were deeply disappointed that on 11 July  we had to advise the customer that 
we  would not be able to assure the delivery of the workforce against the demand 
requirements  and  the  decision  was  taken  by  the  UK  Home Office to deploy 
additional military to augment the security workforce numbers.  To date, we have 
delivered  83% of  the  contracted  shifts  since  the beginning of the year and 
expect to fully resource the contract between now and the end of its term. 
 
In  addition to supplying the London 2012 security workforce, we also provided a 
range  of cash solutions services to LOCOG and its partners and to G4S customers 
across  London and the South East of England  as a result of the Olympic Games. 
This  included handling an  extra 20,100 cash containers  through our system and 
over 2,100 additional ATM services. 
 
The  Paralympic Games  begin on  29th August and  we continue  to work  with our 
partners to ensure that the Games are safe and secure.  We are confident that we 
have  an  assured  security  workforce  for  the  Paralympic  Games  and  do not 
anticipate any workforce shortfall issues to arise. 
 
A  Board review of the  contract has commenced with  the assistance of PwC.  The 
review  will  cover  all  aspects  of  the  contract  including the key expected 
deliverables  of the contract, the actual contract performance, execution issues 
and  timings and why failures  were not identified in  a more timely manner.  We 
expect  the review findings to be made  available to the Board during the second 
half of September. 
 
Contract Loss Provision 
 
Our current estimate is that the loss on the London 2012 Contract will be in the 
region  of  GBP50m and this amount has been provided for at the half year and taken 
as  an exceptional item.  This  estimate is based on  our current expectation of 
the financial outcome including reasonable estimates of costs where at this date 
there is still uncertainty.  The estimate is based upon the following: 
 
  * the  additional costs relating  to the deployment  of the increased military 
    and  police personnel based  upon available information  - as at the current 
    date  we have not been advised of the  actual cost, but confirm that we will 
    meet the additional costs in line with the commitment we made in July 
  * our estimates of potential penalties and contractual liabilities 
  * the  additional  costs  relating  to  the  provision  of  increased internal 
    resource to deliver the contract 
 
The  final contract loss will be impacted by the actual cost of the military and 
police  deployment and  by the  outcome of  negotiations in respect of potential 
penalties and contractual liabilities. 
 
 
 
 
BUSINESS ANALYSIS 
 
 
Secure solutions 
 
+---------------------+-------------+-------------+-------------+--------------+ 
|                     |     Turnover|        PBITA|      Margins|Organic Growth| 
|                     |             |             |             |              | 
|                     |            GBPm|            GBPm|             |              | 
|                     +------+------+------+------+------+------+--------------+ 
|* At constant        |H1 12 |H1 11 |H1 12 |H1 11 |H1 12 |H1 11 |        H1 12 | 
|exchange rates       |      |      |      |      |      |      |              | 
+---------------------+------+------+------+------+------+------+--------------+ 
|Europe *             | 1,405| 1,300|    83|    83|  5.9%|  6.4%|            8%| 
+---------------------+------+------+------+------+------+------+--------------+ 
|North America *      |   864|   828|    39|    47|  4.5%|  5.7%|            4%| 
+---------------------+------+------+------+------+------+------+--------------+ 
|Developing Markets * |   994|   879|    78|    71|  7.8%|  8.1%|           10%| 
+---------------------+------+------+------+------+------+------+--------------+ 
|Total secure         | 3,263| 3,007|   200|   201|  6.1%|  6.7%|            8%| 
|solutions *          |      |      |      |      |      |      |              | 
+---------------------+------+------+------+------+------+------+--------------+ 
|Exchange differences |     -|    38|     -|     2| 
+---------------------+------+------+------+------+ 
|At actual exchange   | 3,263| 3,045|   200|   203| 
|rates                |      |      |      |      | 
+---------------------+------+------+------+------+ 
 
 
 
The secure solutions business continued its strong performance with good organic 
growth  of  6% (8%  including  the  Olympic  Games  contract),  helped by strong 
developing  markets  growth.  Margins  were  lower  at  6.3% (6.1% including the 
Olympics  contract) due to challenging economic conditions in Continental Europe 
and a reduction in US government work. 
 
Europe 
 
+----------------------+------------+-------------+-------------+--------------+ 
|                      |    Turnover|        PBITA|      Margins|Organic Growth| 
|                      |            |             |             |              | 
|                      |           GBPm|            GBPm|             |              | 
|                      +-----+------+------+------+------+------+--------------+ 
|* At constant exchange|H1 12|H1 11 |H1 12 |H1 11 |H1 12 |H1 11 |        H1 12 | 
|rates                 |     |      |      |      |      |      |              | 
+----------------------+-----+------+------+------+------+------+--------------+ 
|UK & Ireland *        |  711|   610|    54|    50|  7.6%|  8.2%|           14%| 
+----------------------+-----+------+------+------+------+------+--------------+ 
|Continental Europe *  |  694|   690|    29|    33|  4.2%|  4.8%|            3%| 
+----------------------+-----+------+------+------+------+------+--------------+ 
|Total Europe *        |1,405| 1,300|    83|    83|  5.9%|  6.4%|            8%| 
+----------------------+-----+------+------+------+------+------+--------------+ 
 
Organic  growth  in  Europe  excluding  the  Olympic  Games  contract was 3% (8% 
including  the  Olympics  contract)  and  margins  were 6.3% (5.9% including the 
Olympics contract). 
There  was  organic  growth  of  4% in  the  UK & Ireland excluding the Olympics 
contract  (14%  including  the  Olympics  contract)  with  a  continued improved 
performance  in Ireland. The  UK & Ireland  margin was lower  at 7.6% due to the 
Olympics contract and was maintained excluding the contract. 
 
Organic  growth was  impacted by  the loss  of some  government contracts during 
2011. Offsetting  that  was  a  number  of  major  government  contract wins and 
extensions such as: 
 
  * Total  facilities management for  the Ministry of  Justice at more than 340 
    court  buildings across the  Midlands, Wales and  the North of England which 
    was mobilised successfully in February this year. 
  * The  provision of transport and accommodation  for asylum applicants for the 
    UK  Border Agency for two regions - the Midlands and the East of England and 
    the  North East,  Yorkshire and  Humberside which  mobilised successfully in 
    June. 
 
 
  * Outsourcing  services for  Lincolnshire Police  - the  first contract of its 
    kind to be awarded by a British Police Authority. This contract mobilised in 
    April  2012 and the  transition has  gone extremely  smoothly with excellent 
    service   delivery  and  results.   The  Lincolnshire  contract  includes  a 
    framework  agreement for  ten other  police forces,  including Bedfordshire, 
    Cambridgeshire  and Hertfordshire who recently confirmed their commitment to 
    evaluate outsourcing the forces' organisational support services to G4S. 
  * Mobilising  the successful opening and ongoing  management of the newest and 
    one of the largest prisons in the UK, HMP Oakwood. 
 
The   pipeline  of  UK  government  outsourcing  opportunities  remains  strong, 
particularly  in areas such as prisons, police, probation, health and facilities 
management. 
 
The UK commercial business continued to grow strongly and contracts won included 
a  number of significant smart meter  installation and data management contracts 
for major utility providers. 
 
Trading  conditions in Ireland remain challenging in 2012 but underlying trading 
has  continued to be supported  by a cost reduction  plan. The bidding pipeline, 
especially  in the area of security systems, looks encouraging for the remainder 
of the year. 
 
The  Continental  Europe  region  performed  well  against an uncertain economic 
backdrop.   Overall  organic  growth  was  3%. We  lost  the European parliament 
contract  in Belgium from  May 2012 but won  the European parliament contract in 
Luxembourg  in  April  2012. Margins  were  lower  due  to even tougher economic 
conditions throughout the region and mandatory pay awards in the Netherlands not 
being  fully recovered. To  counteract this, a  number of efficiency initiatives 
have been implemented which will reduce direct and overhead headcount numbers by 
around  250, alongside a number of branch  closures throughout Europe. We should 
see a steady improvement in margins over the next 18 months as a result of these 
measures being taken in 2012. 
 
Revenues  for the  security systems  business, which  accounts for around 20% of 
Continental European secure solutions revenues, were up around 2%. 
 
There were some notable strong performances in the region - in Sweden, G4S won a 
secure  solutions contract  with AB  Volvo from  April 2012 for  three years. In 
addition  there  were  contract  wins  in  Belgium, Norway, Finland, Austria and 
Denmark  for  customers  in  retail,  transportation  and telecoms sectors.  The 
business  in  Greece  has  been  challenged  by  the economic crisis but we have 
recently  started several new contracts in the region such as the US Embassy and 
for Hellenic Petroleum. 
 
Organic  growth in most Eastern  European markets has now  stabilised to the low 
single  digit  level.  We  have  won  a  significant contract with a major steel 
manufacturer  in  Ukraine  and  we  have  recently  won contracts in Hungary and 
Slovakia for companies in sectors such as manufacturing, electronics and retail. 
The group divested its businesses in Poland in July. 
 
North America 
 
+----------------------+------------+-------------+-------------+--------------+ 
|                      |    Turnover|        PBITA|      Margins|Organic Growth| 
|                      |            |             |             |              | 
|                      |           GBPm|            GBPm|             |              | 
|                      +-----+------+------+------+------+------+--------------+ 
|* At constant exchange|H1 12|H1 11 |H1 12 |H1 11 |H1 12 |H1 11 |        H1 12 | 
|rates                 |     |      |      |      |      |      |              | 
+----------------------+-----+------+------+------+------+------+--------------+ 
|North America *       |  864|   828|    39|    47|  4.5%|  5.7%|            4%| 
+----------------------+-----+------+------+------+------+------+--------------+ 
 
Organic growth in North America was 4%. Margins were lower compared to the prior 
year  due to the performance  of the US government  business where revenues were 
down  14% and  operating  profits  down  nearly   GBP10m causing margins to decline 
significantly  from  around  5% to  less  than  2%. The  US  government business 
continues to be impacted by the significant reduction in federal funding levels. 
The  profit reduction impact is split broadly between budgetary induced pressure 
on  the  domestic  US  government  business  and  the  decline  in  volumes  for 
international  landmine  clearance.   We  have  already instigated overhead cost 
saving  plans in the US domestic business and will be merging our US and UK mine 
clearing businesses in the second half to bring them back into profitability. 
 
 
 
In  the  United  States  growth  in  the  commercial  sector  was strong and our 
commercial secure solutions business had its strongest first half on record.  We 
continue  to remain optimistic  about growth in  the commercial sector, with the 
largest  visible sales  pipeline in  the history  of the  company.  The security 
systems  business  continues  to  make  good  progress, with a record order book 
representing  more than 12 months work in hand.   The outlook for new US federal 
government  work  in  the  short  term  continues to be subdued, however we have 
recently  been awarded a $55m per  annum contract for integrated base operations 
support services at the US Navy Support Facility, Diego Garcia from November for 
up to 10 years. State and local governments remain under financial pressure, but 
we  continue to see some appetite for  outsourcing focused on the more effective 
delivery of public services. 
 
In  the commercial sector,  recent contract awards  have been in the healthcare, 
distribution,  chemical, manufacturing  and retail  sectors.  G4S  commenced the 
provision  of security  solutions for  a major  automotive company  from January 
2012 valued  at $70m per annum for  three years.  The group's largest commercial 
contract with Bank of America has been extended until 2014 and G4S North America 
has  been awarded a secure  solutions contract with Google  for its locations in 
the  United States  and data  centres in  Belgium and  Finland. The  US security 
systems  business performed well  with a number  of systems integration projects 
for Tampa Airport, Iberdrola, and the Port of Tacoma. 
 
Additional  examples  of  major  contract  awards  include:  world-wide security 
services  for GE, building  on a long-standing  service relationship; the Sandia 
National  Laboratories  for  the  Department  of  Energy,  which  represents  an 
expansion  of services provided  to this important  customer; and compliance and 
investigations  services for Gallagher  Bassett, where we  will staff and manage 
their  Special  Investigations  Unit  responsible  for  investigating fraudulent 
workers compensation claims. 
 
In  Canada, the organic  growth rate was  over 30% driven by  the CATSA aviation 
security contract which started on 1 November 2011. The contract is for security 
at 21 airports in the Pacific region of Canada and has projected revenue of more 
than CAD$ 400m over the initial five-year term. 
 
Developing Markets 
 
+---------------------+-------------+-------------+-------------+--------------+ 
|                     |     Turnover|        PBITA|      Margins|Organic Growth| 
|                     |             |             |             |              | 
|                     |            GBPm|            GBPm|             |              | 
|                     +------+------+------+------+------+------+--------------+ 
|* At constant        |H1 12 |H1 11 |H1 12 |H1 11 |H1 12 |H1 11 |        H1 12 | 
|exchange rates       |      |      |      |      |      |      |              | 
+---------------------+------+------+------+------+------+------+--------------+ 
|Asia *               |   339|   313|    23|    20|  6.8%|  6.4%|            8%| 
+---------------------+------+------+------+------+------+------+--------------+ 
|Middle East *        |   213|   208|    18|    17|  8.5%|  8.2%|            4%| 
+---------------------+------+------+------+------+------+------+--------------+ 
|Africa *             |   179|   163|    15|    17|  8.4%| 10.4%|           10%| 
+---------------------+------+------+------+------+------+------+--------------+ 
|Latin    America    &|   263|   195|    22|    17|  8.4%|  8.7%|           17%| 
|Caribbean *          |      |      |      |      |      |      |              | 
+---------------------+------+------+------+------+------+------+--------------+ 
|Total      Developing|   994|   879|    78|    71|  7.8%|  8.1%|           10%| 
|Markets *            |      |      |      |      |      |      |              | 
+---------------------+------+------+------+------+------+------+--------------+ 
 
In  Developing Markets, revenue growth was  13% and organic growth was excellent 
at 10% with margins slightly lower due mainly to Africa. 
 
Organic  growth  in  Asia  was  8% and  margins  were up to 6.8% due to improved 
business  performance  in  a  number  of  countries.    There was strong organic 
revenue  growth in Thailand, China, South Korea, Japan and Indonesia. India, the 
largest  market in  the region,  achieved a  good performance  with double-digit 
revenue growth. 
 
We  recently won a manned security contract with the United Nations in Papua New 
Guinea.  Revenues declined in Australia  as a result of  the loss of the Western 
Australia  Prisoner Transportation  contract which  ended in July 2011. However, 
the  pipeline is  looking more  positive with  a concerted  effort to target the 
Australian  commercial market.   Recent wins  include DP  World and Bechtel. The 
offender  monitoring contract in New Zealand  has been extended for 18 months to 
the end of 2013. 
 
 
In  the Middle  East, organic  growth was  4%, due to  reductions in activity in 
Iraq.  Margins improved  compared to  the prior  year due  to the  one-off bonus 
payment  made in Saudi Arabia in H1  2011 and recent Qatar contract wins include 
Qatar Airways and Qatar National Bank. We are in the process of exiting from the 
US Embassy contract in Kabul, Afghanistan. 
 
Africa  performed strongly  with organic  growth of  10%. Margins were  lower at 
8.4%, due to contract losses in Nigeria. New contracts won or renewed are mainly 
in  key strategic sectors such  as aviation, mining, oil  and gas and embassies. 
 The  current  bidding  pipeline  in  Africa  is  the strongest in the company's 
history  -  particularly  in  financial  services,  mining  and  embassies, with 
increasing numbers of both multi-country/pan- African  and larger scale bids. 
 
The Latin America and Caribbean region has performed well with organic growth of 
17% and  as a result of strong performances across most countries.  We have also 
had  a number of strategic contract wins, for example in the financial services, 
Government and extractives sectors. 
 
We  are in  the process  of extending  our presence  in Brazil.  Legislation was 
reviewed  recently following which  the Brazilian Government  has confirmed that 
security businesses which were established prior to 1983 may be owned by foreign 
companies.   This had previously been a  critical factor in delaying the group's 
strategic  plans in Brazil.   Now that the  legislation has been reviewed, these 
plans are expected to come to fruition in the near future. 
 
 
 
Cash Solutions 
 
+----------------------+------------+-------------+-------------+--------------+ 
|                      |    Turnover|        PBITA|      Margins|Organic Growth| 
|                      |            |             |             |              | 
|                      |           GBPm|            GBPm|             |              | 
|                      +-----+------+------+------+------+------+--------------+ 
|* At constant exchange|H1 12|H1 11 |H1 12 |H1 11 |H1 12 |H1 11 |        H1 12 | 
|rates                 |     |      |      |      |      |      |              | 
+----------------------+-----+------+------+------+------+------+--------------+ 
|Europe *              |  387|   393|    34|    37|  8.8%|  9.4%|           -1%| 
+----------------------+-----+------+------+------+------+------+--------------+ 
|North America *       |   56|    52|     1|     0|  1.8%|  0.0%|            7%| 
+----------------------+-----+------+------+------+------+------+--------------+ 
|Developing Markets *  |  197|   178|    25|    22| 12.7%| 12.4%|           11%| 
+----------------------+-----+------+------+------+------+------+--------------+ 
|Total Cash Solutions *|  640|   623|    60|    59|  9.4%|  9.5%|            3%| 
+----------------------+-----+------+------+------+------+------+--------------+ 
|Exchange differences  |     |    18|      |     2| 
+----------------------+-----+------+------+------+ 
|At   actual   exchange|  640|   641|    60|    61| 
|rates                 |     |      |      |      | 
+----------------------+-----+------+------+------+ 
 
The  cash solutions  business showed  a solid  performance with  organic revenue 
growth  of 3%. Overall margins were 9.4%, with improvements in North America and 
developing  markets being offset  by lower margins  in Europe due to anticipated 
contract phasing in the UK. 
 
Organic  growth in Europe declined by 1%. In the UK & Ireland, revenues declined 
by  6% as a result of  the loss of two  ATM contracts in mid 2011. This impacted 
the  first half of 2012 but the outlook is much improved as the business has won 
three  major contracts for financial  institutions providing outsourcing of cash 
processing,  cash machine replenishment and engineering to both on-bank branches 
and  remote sites. The  engineering will be  provided on a  full 24/7 basis - an 
industry  first. The roll-out of these contracts  will be completed early in the 
second  half  and  should  provide  double  digit revenue and profit growth. The 
outlook  for  2013 is  also  positive  with  a  solid  pipeline  of  outsourcing 
contracts. 
 
In  Sweden, the cash solutions business was sold in February 2012.  Elsewhere in 
Continental Europe, organic growth was positive helped by product development in 
the  Netherlands, strong performances in Belgium,  as  a result of growth in ATM 
servicing, CASH360 and cash processing, and productivity improvement in Finland. 
 
G4Si,  the  international  valuables  transportation  business, achieved another 
strong performance, with double digit organic growth supported by an increase in 
commodity  shipments such as  pre-refined and refined  metal, bank notes, credit 
cards, and pharmaceuticals. 
 
In  North America, the performance of the  cash solutions business in Canada was 
improved   through  stronger  alignment  in  key  sectors  following  management 
integration  with the  Canadian secure  solutions business  in the first half of 
2012.  This has resulted in contract awards and extensions with key customers in 
the retail and financial services sectors. 
 
Organic  growth  in  Developing  Markets  was  good  at  11%. The cash solutions 
business in Saudi Arabia achieved an improved business performance and excellent 
growth  and strong  margins were  achieved in  Hong Kong, helped by successfully 
negotiating price increases with a number of key customers. 
 
 
 
 
 
STRATEGIC DEVELOPMENT 
 
 
Our strategy is to differentiate ourselves in our markets by using our expertise 
to drive outsourcing and to minimise commoditisation of traditional security 
services.  We see strong evidence of this strategy delivering enhanced growth 
opportunities for the group by: 
 
      * Capitalising  on the  structural growth  opportunity of increased demand 
        for  outsourcing  by  delivering  innovative, cost reducing, tailor-made 
        solutions  to customers as they re-shape their businesses in response to 
        economic pressures, regulation and compliance requirements 
 
      * Focusing  the  group  on  attractive  global  markets  and sectors where 
        security is a key consideration 
 
      * Increasing  global reach  - G4S  has a  broad international presence and 
        unique  developing  markets  exposure.  We  can  export  our  government 
        expertise  into new  countries, drive  outsourcing of  cash solutions in 
        developing  markets  and  develop  secure  solutions  for multi-national 
        customers across numerous countries 
 
      * Building  on strong organic growth through security-focused acquisitions 
        in  developing markets where we can extend our market share or enter new 
        high  growth  sectors.  We  expect  to  spend  up  to  GBP200m each year on 
        acquisitions out of free cash flow 
 
Service Excellence Centres (SEC) 
 
It  is  essential  that  the  organisational  design  is  aligned to deliver the 
strategy  and that  we keep  costs under  control.  This  year, we created three 
product-specific  service excellence centres to work with G4S country operations 
globally  as part of  a two year  programme to focus  on operational efficiency, 
service standards, and development of technology to support service delivery and 
sharing best practice across our main service lines. 
 
In  the cash solutions businesses significant operational improvements have been 
made  by  businesses  fully  utilising  EViper  (our cash logistics planning and 
reconciliation  system) - we  have identified four  businesses that will benefit 
from  the  implementation  of  EViper  in  2013.  There  are  five countries now 
deploying  Telematics  systems  (across  2,900 vehicles)  which  monitor  driver 
activity  in real time  to help manage  fuel consumption and  improve health and 
safety.   This is  currently helping  those businesses  to achieve more than  GBP1m 
consolidated  fuel savings per year.  Further countries will adopt the system in 
due course. 
 
In  secure solutions,  SEC initiatives  include the  introduction of Saturn (our 
manned security scheduling system) in seven countries with a further roll-out in 
8-10 countries in the next twelve months. 
 
Restructuring Costs 
 
We  have also undertaken a detailed review  of the overhead structure across all 
reporting  levels and geographies in order  to maximise efficiency and eliminate 
duplication.  Restructuring  in  the  first  half  of  this year has generated a 
headcount reduction of over 1,100 positions. This has resulted in an exceptional 
cost  of  GBP24m in the first half of the year  and a further cost of up to  GBP10m in 
the  second half. The restructuring expenditure in the first half is analysed by 
geography as follows: 
 
+---------------------+-------------------+------------+-----------+-----------+ 
|                     |Headcount reduction|People costs|Other Costs|Total Costs| 
|                     |                   |           GBPm|          GBPm|          GBPm| 
+---------------------+-------------------+------------+-----------+-----------+ 
|UK                   |                 58|         2.0|        0.2|        2.2| 
|                     |                   |            |           |           | 
|Continental Europe   |                257|         7.2|        1.0|        8.2| 
|                     |                   |            |           |           | 
|North America        |                132|         3.6|          0|        3.6| 
|                     |                   |            |           |           | 
|Developing Markets   |                605|         5.1|        2.5|        7.6| 
|                     |                   |            |           |           | 
|Head      Office/Cash|                 48|         2.6|          0|        2.6| 
|Division             |                   |            |           |           | 
+---------------------+-------------------+------------+-----------+-----------+ 
|Total                |              1,100|        20.5|        3.7|       24.2| 
+---------------------+-------------------+------------+-----------+-----------+ 
 
 
This  restructuring will result in annualised cost savings of c GBP30m, with effect 
from  the second half of  this year, and help  maintain group margins. We expect 
the majority of this benefit to come through in 2013. The group plans to achieve 
further  cost savings  in the  medium-term through  procurement efficiencies and 
business process redesign. 
 
 
OTHER FINANCIAL ISSUES 
 
Acquisitions and divestments 
 
The  group invested a  total of  GBP6m  in the first  half of 2012 with a number of 
smaller  acquisitions. Since the end of June, we have acquired Protekt, a safety 
training consultancy in the Netherlands. 
 
Our  acquisition strategy  will continue  to focus  on niche opportunities which 
will  both  help  to  deliver  our  strategic  objectives and meet our financial 
performance  criteria.  We expect to invest up to  GBP200m in acquisitions in 2012 
and  will be more active in our  divestment strategy where businesses are not in 
line with the group's strategy or where an alternative parent could add or drive 
more value from a business. 
 
During  the first  half of  the year  we disposed  of our Swedish cash solutions 
business and also sold a loss making electronic monitoring business in the US. 
 
Risks and uncertainties 
 
A  discussion  of  the  group's  risk  assessment  and control processes and the 
principal  risks and uncertainties that could  affect the business activities or 
financial results is detailed on pages 42, 43, 58 and 59 of the company's annual 
report  for  the  financial  year  ended  31 December  2011, a  copy of which is 
available on the group's website at www.g4s.com. 
 
The  risks and uncertainties, together with  those relating to the Olympic Games 
contract  discussed elsewhere in  this announcement, are  expected to remain the 
same during the remaining six months of the financial year. 
 
Financing and interest 
 
We  have  a  prudent  approach  to  our  balance  sheet  whilst  maintaining the 
flexibility  to pursue  acquisitions when  appropriate. G4S  has had a long term 
credit  rating of BBB Stable granted by Standard & Poor's in March 2009, however 
following  the  G4S  Olympic  contract  announcement on 13 July 2012, Standard & 
Poor's  revised the outlook  to CreditWatch negative  on 20 July. Our  aim is to 
regain our credit rating of BBB Stable and to continue to maintain a net debt to 
EBITDA ratio of around 2 to 2.5 times. The group is currently well financed, has 
a  diverse range  of finance  providers and  the maturity  profile is long term. 
Borrowings  are principally in pounds sterling,  US dollars and euros reflecting 
the geographies of significant operational assets and profits. 
 
Our main sources of finance and their rates are set out below: 
 
(i) A  GBP1.1bn multicurrency revolving credit facility provided by a consortium of 
lending  banks at a margin of 0.80% over Libor and maturing on 10 March 2016. As 
at 30 June 2012 the drawings were US$ 230m, Euro 90m and  GBP170m. 
 
(ii)  A $550m private placement of notes issued on 1 March 2007, which mature at 
various dates between 2014 and 2022 and bear interest at rates between 5.77% and 
6.06%. 
 
(iii)  $514m  and   GBP69m  private  placement  notes issued on 15 July 2008, which 
mature at various dates between 2013 and 2020 and bear interest at rates between 
6.09% and 7.56%. 
 
(iv)  A  GBP350m  Public Note  issued on  13 May 2009 bearing  an interest  rate of 
7.75%, maturing 13 May 2019. 
 
(v)  A Euro 600m Public  Note issued on  2 May 2012 bearing an  interest rate of 
2.875%, maturing 2 May 2017. 
 
As  of 30 June 2012, net  debt was  GBP1,683m  and our headroom  was  GBP713m. We have 
sufficient borrowing capacity to finance our current investment plans. 
 
Net interest payable on net debt was  GBP50m. This is a net increase of 9% over the 
2011 cost of  GBP46m, due principally to the increase in the group's net debt. 
 
Our  average cost of gross borrowings during the half year, net of interest rate 
hedging, was 4.4% compared to 4.7% in 2011. 
 
 
 
 
 
Taxation 
 
The  effective  tax  rate  for  the  half  year  on  adjusted earnings was 22%, 
consistent with 2011.  The cash tax rate is 22.9% compared to 18.5% in 2011. Our 
target is to maintain the effective tax rate at the current level.  This will be 
supported  by the  gradual reduction  in UK  corporation tax  rates, the ongoing 
rationalisation  of  the  group  legal  structure  and the elimination of fiscal 
inefficiencies. 
 
Retirement benefit obligations 
 
The  group's funding shortfall on funded  defined retirement benefit schemes, on 
the  valuation basis specified in IAS19  Employee Benefits, was  GBP298m before tax 
or   GBP226m after tax (31 December  2011:  GBP295m and  GBP218m respectively).  The main 
scheme is in the UK.  The latest full actuarial valuations were undertaken at 5 
April  2009 in respect  of all  three sections  of the  UK scheme.  However, all 
actuarial assumptions were reviewed and updated as at 31 December 2011. 
 
The  net pension obligation has increased  very slightly since 31 December 2011 
due  to the additional contributions  being offset by the  actuarial loss in the 
period.   The discount rate used to  calculate the obligation is consistent with 
that  used at  31 December 2011 of  4.95%.  Additional company  contributions of 
 GBP19m were paid into the schemes. 
 
We  believe that, over  the very long  term in which  retirement benefits become 
payable, investment returns should eliminate the deficit reported in the schemes 
in  respect  of  past  service  liabilities.   However,  in  recognition  of the 
regulatory  obligations upon pension fund trustees to address reported deficits, 
the group's deficit recovery plan will see cash contributions made to the scheme 
of approximately  GBP35m in 2012 with modest annual increments thereafter. 
 
Dividend 
 
The board has declared an interim dividend of 3.42p per share (DKK 0.3220). This 
is consistent with the interim dividend for 2011. 
 
The group expects to continue to increase dividends broadly in line with 
normalised adjusted earnings. 
 
 
 
 
 
REVIEW AND OUTLOOK 
 
Despite  ongoing  economic  uncertainty  in  the  first  half  of  2012 and  the 
challenges  of  delivering  the  London  2012 security  contract, the underlying 
business  has performed  well and  the positive  trading momentum is expected to 
continue. 
 
The  organisation design and overhead  review programme will deliver significant 
costs  savings in the next  12 months and investment in  service line and sector 
expertise  is  expected  to  enhance  the  group's  product  offer and assist in 
maintaining margins and driving through further growth. 
 
Developing  markets (which now represent 31% of  group revenues and 40% of group 
profits)  and  growing  outsourcing  trends  continue  to be key business growth 
drivers and we expect to see organic growth continue to improve as a result. 
 
The  breadth of the group's portfolio in 125 countries continues to present many 
new  growth opportunities. Market leading businesses  in many countries, a broad 
customer  base and the current  GBP3.8  billion per annum contract pipeline provide 
confidence in the outlook for the group. 
 
 
 
                                                                  28 August 2012 
 
 
 
G4S plc 
 
Unaudited half-yearly results announcement 
 
For the six months ended 30 June 2012 
 
 
Directors' responsibility statement in respect of the half-yearly results 
announcement 
 
We confirm that to the best of our knowledge: 
 
  * this condensed set of financial statements has been prepared in accordance 
    with International Accounting Standard (IAS) 34 Interim Financial Reporting 
    as adopted by the EU 
  * the half-yearly report includes a fair review of the information required 
    by: 
 
 
 a. DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of 
    important events that have occurred during the first six months of the 
    financial year and their impact on the condensed set of financial 
    statements; and a description of the principal risks and uncertainties for 
    the remaining six months of the year; and 
 
 b. DTR 4.2.8R of the Disclosure and Transparency Rules, being related party 
    transactions that have taken place in the first six months of the current 
    financial year and that have materially affected the financial position or 
    performance of the entity during that period; and any changes in the related 
    party transactions described in the last annual report that could do so. 
 
 
The responsibility statement is signed by: 
 
 
 
Nick Buckles               Trevor Dighton 
 
Chief Executive   Chief Financial Officer 
 
 
 
 
 
 
 
 
 
G4S plc 
Unaudited half-yearly results announcement 
For the six months ended 30 June 2012 
 
Consolidated income statement 
For the six months ended 30 June 2012 
                                     Six months ended Six months ended     Year 
                                                                          ended 
 
                                             30.06.12         30.06.11 31.12.11 
 
 
 
                               Notes                GBPm                GBPm        GBPm 
=------------------------------------------------------------------------------- 
 
 
 Continuing operations 
 
 
 
 Revenue                         2              3,903            3,686    7,502 
=------------------------------------------------------------------------------- 
 
 
 Profit from operations before 
 amortisation of acquisition- 
 related intangible assets, 
 exceptional items and share 
 of profit from associates                        236              239      529 
 
 Share of profit from                               -                1        3 
 associates 
 
 
=------------------------------------------------------------------------------- 
 Profit from operations before 
 amortisation of acquisition- 
 related intangible assets and 
 exceptional items (PBITA)         2              236              240      532 
 
 
 
 Amortisation of acquisition-                    (46)             (43)     (99) 
 related intangible assets 
 
 Acquisition-related expenses                     (1)              (1)      (2) 
 
 Provision for expected losses                   (50) 
 on Olympics contract 
 
 Restructuring costs                             (24)                -        - 
 
 Aborted acquisition and legal                      -                -     (55) 
 settlement costs 
 
 
=------------------------------------------------------------------------------- 
 Profit from operations before                    115              196      376 
 interest and taxation (PBIT)   2, 3 
 
 
 
 Finance income                    6               48               54      111 
 
 Finance costs                     7            (102)             (99)    (207) 
 
 
=------------------------------------------------------------------------------- 
 Profit from operations before                     61              151      280 
 taxation (PBT) 
=------------------------------------------------------------------------------- 
 
 
 Taxation: 
+------------------------------------------------------------------------------+ 
|   Before amortisation of                       (39)             (43)     (95)| 
|acquisition-related intangible                                                | 
|assets and exceptional items                                                  | 
|                                                                              | 
| - On amortisation of                             12               12       25| 
|acquisition-related                                                           | 
|intangible assets                                                             | 
|                                                                              | 
| - On acquisition-related                          -                -        1| 
|expenses                                                                      | 
|                                                                              | 
| - On provision for expected                      10                -        -| 
|losses on Olympic contract                                                    | 
|                                                                              | 
| - On restructuring costs                          3                -        -| 
|                                                                              | 
| - On aborted acquisition and                      -                -       13| 
|legal settlement costs                                                        | 
+------------------------------------------------------------------------------+ 
                                   8             (14)             (31)     (56) 
 
 
=------------------------------------------------------------------------------- 
 Profit from continuing                            47              120      224 
 operations after taxation 
 
 
 
 Loss from discontinued            4              (9)              (2)     (26) 
 operations 
 
 
=------------------------------------------------------------------------------- 
 Profit for the period                             38              118      198 
=------------------------------------------------------------------------------- 
 
 
 Attributable to: 
 
 Equity holders of the parent                      29              108      181 
 
 Non-controlling interests                          9               10       17 
=------------------------------------------------------------------------------- 
 Profit for the period                             38              118      198 
=------------------------------------------------------------------------------- 
 
 
 Earnings per share 
 attributable to ordinary 
 equity shareholders               9 
 of the parent from continuing 
 and discontinued operations 
 
 Basic and diluted                               2.1p             7.7p    12.9p 
=------------------------------------------------------------------------------- 
 
+------------------------------------------------------------------------------+ 
|Dividends declared and                                                        | 
|proposed in respect of the       10                                           | 
|period                                                                        | 
|                                                                              | 
|Interim dividend of 3.42p per                     48               48       48| 
|share (2011: 3.42p per share)                                                 | 
|                                                                              | 
|Final dividend (2011: 5.11p                        -                -       72| 
|per share)                                                                    | 
+------------------------------------------------------------------------------+ 
|Total                                             48               48      120| 
+------------------------------------------------------------------------------+ 
Condensed consolidated statement of comprehensive income 
For the six months ended 30 June 2012 
 
                                      Six months ended Six months ended     Year 
                                                                           ended 
 
                                              30.06.12         30.06.11 31.12.11 
 
                                                     GBPm                GBPm        GBPm 
=------------------------------------------------------------------------------- 
Profit for the period                               38              118      198 
 
 
 
Other comprehensive income 
 
Exchange differences on translation               (49)                7     (65) 
of foreign operations 
 
Actuarial    losses    on   defined               (21)             (13)     (73) 
retirement benefit schemes 
 
Change  in fair value  of cash flow               (11)                2        8 
hedging financial instruments 
 
Tax  on  items  taken  directly  to                  4              (2)        9 
equity 
=------------------------------------------------------------------------------- 
Other  comprehensive income, net of               (77)              (6)    (121) 
tax 
 
 
=------------------------------------------------------------------------------- 
Total  comprehensive income for the               (39)              112       77 
period 
=------------------------------------------------------------------------------- 
 
 
Attributable to: 
 
Equity holders of the parent                      (48)              102       62 
 
Non-controlling interests                            9               10       15 
=------------------------------------------------------------------------------- 
Total  comprehensive income for the               (39)              112       77 
period 
=------------------------------------------------------------------------------- 
 
 
 
 
Condensed consolidated statement of changes in equity 
For the six months ended 30 June 2012 
 
                                      Six months ended Six months ended     Year 
                                                                           ended 
 
                                              30.06.12         30.06.11 31.12.11 
 
                                                     GBPm                GBPm        GBPm 
=------------------------------------------------------------------------------- 
 
 
At beginning of period                           1,494            1,577    1,577 
 
Total comprehensive income 
attributable to equity shareholders 
of the parent                                     (48)              102       62 
 
Dividends declared                                (72)             (66)    (114) 
 
Own shares purchased                               (6)              (8)     (13) 
 
Equity settled transactions                        (1)                1        1 
 
Transactions with non-controlling                    -                -     (19) 
interests 
=------------------------------------------------------------------------------- 
At end of period                                 1,367            1,606    1,494 
=------------------------------------------------------------------------------- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Condensed consolidated statement of financial position 
At 30 June 2012 
 
                                                         As at    As at    As at 
 
                                                      30.06.12 30.06.11 31.12.11 
 
                                                Notes        GBPm        GBPm        GBPm 
=------------------------------------------------------------------------------- 
ASSETS 
 
 
 
Non-current assets 
 
Goodwill                                                 2,182    2,165    2,209 
 
Other acquisition-related intangible assets                219      263      264 
 
Other intangible assets                                     80       73       87 
 
Property, plant and equipment                              516      559      531 
 
Investment in associates                                     8        7        9 
 
Trade and other receivables                                350      300      319 
=------------------------------------------------------------------------------- 
                                                         3,355    3,367    3,419 
=------------------------------------------------------------------------------- 
 
 
Current assets 
 
Inventories                                                129      124      123 
 
Investments                                                 64       69       70 
 
Trade and other receivables                              1,580    1,543    1,546 
 
Cash and cash equivalents                                  399      429      433 
 
Assets classified as held for sale                 11       28        -       35 
=------------------------------------------------------------------------------- 
                                                         2,200    2,165    2,207 
=------------------------------------------------------------------------------- 
 
 
Total assets                                             5,555    5,532    5,626 
=------------------------------------------------------------------------------- 
 
 
LIABILITIES 
 
 
 
Current liabilities 
 
Bank overdrafts                                           (32)     (46)     (53) 
 
Bank loans                                                (46)    (113)     (47) 
 
Obligations under finance leases                          (16)     (13)     (16) 
 
Trade and other payables                               (1,285)  (1,240)  (1,298) 
 
Provisions                                                (76)     (26)     (35) 
 
Liabilities  associated with  assets classified    11     (16)        -     (29) 
as held for sale 
=------------------------------------------------------------------------------- 
                                                       (1,471)  (1,438)  (1,478) 
=------------------------------------------------------------------------------- 
 
 
Non-current liabilities 
 
Bank loans                                               (465)    (803)    (885) 
 
Loan notes                                             (1,660)  (1,137)  (1,180) 
 
Obligations under finance leases                          (48)     (55)     (48) 
 
Trade and other payables                                  (29)     (11)     (19) 
 
Retirement benefit obligations                           (351)    (300)    (344) 
 
Provisions                                               (119)    (139)    (128) 
=------------------------------------------------------------------------------- 
                                                       (2,672)  (2,445)  (2,604) 
=------------------------------------------------------------------------------- 
 
 
Total liabilities                                      (4,143)  (3,883)  (4,082) 
=------------------------------------------------------------------------------- 
 
 
Net assets                                               1,412    1,649    1,544 
=------------------------------------------------------------------------------- 
 
 
EQUITY 
 
 
 
Share capital                                              353      353      353 
 
Share premium and reserves                               1,014    1,253    1,141 
=------------------------------------------------------------------------------- 
Equity  attributable to  equity holders  of the          1,367    1,606    1,494 
parent 
 
Non-controlling interests                                   45       43       50 
=------------------------------------------------------------------------------- 
Total equity                                             1,412    1,649    1,544 
=------------------------------------------------------------------------------- 
 
 
Condensed consolidated statement of cash flow 
For the six months ended 30 June 2012 
 
                                      Six months ended Six months ended     Year 
                                                                           ended 
 
                                              30.06.12         30.06.11 31.12.11 
 
                                Notes                GBPm                GBPm        GBPm 
=------------------------------------------------------------------------------- 
 
 
Profit from continuing                              61              151      280 
operations before 
taxation 
 
 
 
Adjustments for: 
 
Finance income                                    (48)             (54)    (111) 
 
Finance costs                                      102               99      207 
 
Depreciation of property,                           63               64      125 
plant and equipment 
 
Amortisation of                                     46               43       99 
acquisition-related 
intangible assets 
 
Acquisition-related costs                            1                1        2 
 
Amortisation of other                               12               10       18 
intangible assets 
 
Other non-cash items                               (1)                -      (2) 
 
Profit on disposal of                                -                -     (33) 
subsidiaries 
 
Profit on disposal of                                -                -     (11) 
property, plant and 
equipment 
=------------------------------------------------------------------------------- 
Operating cash flow                                236              314      574 
before movements in 
working capital 
 
 
 
Net working capital                               (19)            (141)    (113) 
movement 
=------------------------------------------------------------------------------- 
Net cash flow from                                 217              173      461 
operating activities of 
continuing operations 
 
Net cash used by                                   (5)                -      (9) 
operating activities of 
discontinued operations 
=------------------------------------------------------------------------------- 
Cash generated by                                  212              173      452 
operations 
 
 
 
Tax paid                                          (42)             (42)     (80) 
=------------------------------------------------------------------------------- 
Net cash flow from                                 170              131      372 
operating activities 
=------------------------------------------------------------------------------- 
 
 
Investing activities 
 
Interest received                                    5                3       17 
 
Cash flow from associates                            -                3        4 
 
Net cash flow from                                (60)             (53)    (142) 
capital expenditure 
 
Net cash flow from                                   2             (51)    (122) 
acquisitions and 
disposals 
 
Sale of trading                                      6               11       10 
investments 
=------------------------------------------------------------------------------- 
Net    cash    used    in                         (47)             (87)    (233) 
investing activities 
=------------------------------------------------------------------------------- 
 
 
Financing activities 
 
Dividends paid to non-                            (14)              (9)     (10) 
controlling interests 
 
Dividends paid to equity                          (72)             (66)    (114) 
shareholders of the 
parent 
 
Net movement in                                     80              203      239 
borrowings 
 
Transactions with non-                               -              (6)     (18) 
controlling interests 
 
Interest paid                                     (70)             (67)    (119) 
 
Own shares purchased                               (6)              (8)     (13) 
 
Repayment of obligations                          (10)             (11)     (17) 
under finance leases 
=------------------------------------------------------------------------------- 
Net cash flow from                                (92)               36     (52) 
financing activities 
=------------------------------------------------------------------------------- 
 
 
Net increase in cash, cash 
equivalents and bank overdrafts 
                 12                                 31               80       87 
 
 
 
Cash, cash equivalents                             370              306      306 
and bank overdrafts at 
the beginning of the 
period 
 
Effect of foreign                                 (31)              (3)     (23) 
exchange rate 
fluctuations on cash held 
=------------------------------------------------------------------------------- 
Cash, cash equivalents                             370              383      370 
and bank overdrafts at 
the end of the period 
=------------------------------------------------------------------------------- 
 
Notes to the half-yearly results announcement 
 
1)  Basis of preparation and accounting policies 
 
These condensed financial statements comprise the unaudited interim consolidated 
results  of G4S plc ("the  group") for the six  months ended 30 June 2012. These 
half-yearly  financial results do not comprise  statutory accounts and should be 
read in conjunction with the Annual Report and Accounts 2011. 
 
The  comparative figures for  the financial year  ended 31 December 2011 are not 
the  company's  statutory  accounts  for  that  year.  Those  accounts have been 
reported  on  by  the  company's  auditor  and  delivered  to  the  Registrar of 
Companies. The report of the auditor was (i) unqualified, (ii) did not contain a 
reference  to any  matters to  which the  auditor drew  attention by emphasis of 
matter  without qualifying their report, and (iii) did not contain any statement 
under section 498 (2) or (3) of the Companies Act 2006. 
 
The  half-yearly results have been prepared in accordance with the going concern 
concept  as  the  group  believes  it  has  adequate  resources  to  continue in 
operational existence for the foreseeable future. 
 
The  condensed  financial  statements  of  the  group  presented in this interim 
announcement  have  been  prepared  in  accordance with IAS 34 Interim Financial 
Reporting  as  adopted  by  the  European  Union,  and  with  the Disclosure and 
Transparency  Rules of the Financial Services Authority. The accounting policies 
applied  are the same as those set out in the group's Annual Report and Accounts 
2011. 
 
The  financial information in these condensed  financial statements for the half 
years to 30 June 2012 and 30 June 2011 have been neither audited nor reviewed. 
 
The  comparative income statement for the six months ended 30 June 2011 has been 
re-presented  for operations  qualifying as  discontinued during  the six months 
ended  31 December 2011 and the  six months ended  30 June 2012. The comparative 
income  statement for the year ended  31 December 2011 has been re-presented for 
operations qualifying as discontinued during the six months ended 30 June 2012. 
 For the six months ended 30 June 2011, revenue has been reduced by  GBP75m and PBT 
has increased by  GBP2m compared to the figures published previously.  For the year 
ended  31 December  2011, revenue  has  been  reduced  by   GBP20m and PBT has been 
increased by  GBP1m compared to the figures published previously. 
 
The  comparative consolidated statement of  financial position as at 31 December 
2011 has been restated to reflect (i) the completion during the six months ended 
30 June  2012 of the initial  accounting in respect  of acquisitions made during 
the  six months ended 30 June 2011, and (ii)  adjustments made in the six months 
to  30 June 2012 to the preliminary assessment of  the fair values of assets and 
liabilities  acquired during the six months ended 31 December 2011.  Adjustments 
made to the provisional calculation of the fair values of assets and liabilities 
acquired  amount to   GBP13m, resulting  in an  equivalent increase in the reported 
value of goodwill. 
 
The comparative consolidated statement of financial position as at 30 June 2011 
has  been restated to reflect the completion during the six months ended 30 June 
2012 of  the initial accounting  in respect of  acquisitions made during the six 
months  ended 30 June 2011. Adjustments  made to the  provisional calculation of 
the  fair values of assets and liabilities  acquired amount to  GBP2m, resulting in 
an equivalent decrease in the reported value of goodwill. 
 
 2)  Operating segments 
 
The  group  operates  in  two  core  product  areas:  secure  solutions and cash 
solutions  which  represent  the  group's  reportable  segments. For each of the 
reportable  segments,  the  group's  CEO  (the  chief  operating decision maker) 
reviews  internal management reports on a regular basis. The group operates on a 
worldwide  basis and derives a substantial  proportion of its revenue, PBITA and 
PBIT  from each  of the  following geographical  regions: Europe (comprising the 
United  Kingdom  and  Ireland,  and  Continental  Europe),  North  America,  and 
Developing  Markets (comprising the  Middle East and  Gulf States, Latin America 
and the Caribbean, Africa, and Asia Pacific). 
Notes to the half-yearly results announcement (continued) 
Segment information for continuing operations is presented below: 
 
Segment revenue 
                                     Six months ended Six months ended     Year 
 Revenue by reportable segment                                            ended 
 
                                             30.06.12         30.06.11 31.12.11 
 
                                                    GBPm                GBPm        GBPm 
=------------------------------------------------------------------------------- 
 
 
 Secure Solutions 
+------------------------------------------------------------------------------+ 
|      UK and Ireland                             711              611    1,252| 
|                                                                              | 
|      Continental Europe                         694              731    1,475| 
+------------------------------------------------------------------------------+ 
    Europe                                      1,405            1,342    2,727 
 
    North America                                 864              811    1,637 
+------------------------------------------------------------------------------+ 
|      Middle East and Gulf States                213              204      410| 
|                                                                              | 
|      Latin America and the                                                   | 
|Caribbean                                        263              196      427| 
|                                                                              | 
|      Africa                                     179              172      348| 
|                                                                              | 
|      Asia Pacific                               339              320      657| 
+------------------------------------------------------------------------------+ 
    Developing Markets                            994              892    1,842 
=------------------------------------------------------------------------------- 
 Total Secure Solutions                         3,263            3,045    6,206 
=------------------------------------------------------------------------------- 
 
 
 Cash Solutions 
 
    Europe                                        387              406      817 
 
    North America                                  56               53      101 
 
    Developing Markets                            197              182      378 
=------------------------------------------------------------------------------- 
 Total Cash Solutions                             640              641    1,296 
=------------------------------------------------------------------------------- 
 Total revenue                       3,903            3,686            7,502 
=------------------------------------------------------------------------------- 
 
Segment result 
                                     Six months ended Six months ended     Year 
 PBITA by reportable segment                                              ended 
 
                                             30.06.12         30.06.11 31.12.11 
 
                                                    GBPm                GBPm        GBPm 
=------------------------------------------------------------------------------- 
 
 
 Secure Solutions 
+------------------------------------------------------------------------------+ 
|      UK and Ireland                              54               50      119| 
|                                                                              | 
|      Continental Europe                          29               35       81| 
+------------------------------------------------------------------------------+ 
    Europe                                         83               85      200 
 
    North America                                  39               46       90 
+------------------------------------------------------------------------------+ 
|      Middle East and Gulf States                 18               17       43| 
|                                                                              | 
|      Latin America and the                                                   | 
|Caribbean                                         22               17       34| 
|                                                                              | 
|      Africa                                      15               18       34| 
|                                                                              | 
|      Asia Pacific                                23               20       37| 
+------------------------------------------------------------------------------+ 
    Developing Markets                             78               72      148 
=------------------------------------------------------------------------------- 
 Total Secure Solutions                           200              203      438 
=------------------------------------------------------------------------------- 
 
 
 Cash Solutions 
 
    Europe                                         34               39       87 
 
    North America                                   1                -        2 
 
    Developing Markets                             25               22       48 
=------------------------------------------------------------------------------- 
 Total Cash Solutions                              60               61      137 
=------------------------------------------------------------------------------- 
 Total PBITA before head office 
 costs                                            260              264      575 
 
 Head office costs                               (24)             (24)     (43) 
=------------------------------------------------------------------------------- 
 Total PBITA                                      236              240      532 
=------------------------------------------------------------------------------- 
 
 
 Result by business segment 
 
 
 
 Total PBITA                                      236              240      532 
 
 Amortisation of acquisition-                    (46)             (43) 
 related intangible assets                                                 (99) 
 
 Acquisition-related expenses                     (1)              (1)      (2) 
 
 Provision for expected losses on                (50)                - 
 Olympics contract                                                            - 
 
 Restructuring costs                             (24)                -        - 
 
 Aborted acquisition and legal                      -                - 
 settlement costs                                                          (55) 
=------------------------------------------------------------------------------- 
 Total PBIT                                       115              196      376 
=------------------------------------------------------------------------------- 
 
 
 
 
 
 
Notes to the half-yearly results announcement (continued) 
 
3)  Profit from operations before interest and taxation 
 
The income statement can be analysed as follows: 
 
                                      Six months ended Six months ended     Year 
Continuing operations                                                      ended 
 
                                              30.06.12         30.06.11 31.12.11 
 
                                                     GBPm                GBPm        GBPm 
=------------------------------------------------------------------------------- 
 
 
Revenue                                          3,903            3,686    7,502 
 
Cost of sales                                  (3,143)          (2,924)  (5,909) 
=------------------------------------------------------------------------------- 
Gross profit excluding Olympic                     760              762    1,593 
costs 
 
Provision for expected losses on                  (50)                -        - 
Olympic contract 
=------------------------------------------------------------------------------- 
Gross profit including Olympic                     710              762    1,593 
costs 
 
Administration expenses                          (571)            (567)  (1,220) 
 
Restructuring costs                               (24)                -        - 
 
Share of profit from associates                      -                1        3 
=------------------------------------------------------------------------------- 
Profit from operations before                      115              196 
interest and taxation                                                        376 
=------------------------------------------------------------------------------- 
 
Included   within   administration  expenses  is  the  amortisation  charge  for 
acquisition-related  intangible  assets.   In  the  year to 31 December 2011 the 
administration expenses included aborted acquisition and legal settlement costs. 
The  aborted acquisition costs incurred in  the prior year included debt finance 
underwriting  fees,  financing  and  hedging  costs  that  arose on the proposed 
acquisition of ISS A/S which was terminated on 1 November 2011. 
 
 
4)  Discontinued operations 
 
Operations  qualifying  as  discontinued  in  2011 included  the  cash solutions 
business in Sweden, which was disposed of in February 2012; the secure solutions 
and  cash solutions businesses in Poland and  the UK risk assessment business in 
Afghanistan.  In 2012, additional operations  qualifying as discontinued include 
the  electronic monitoring business in the  United States, which was disposed of 
during the period. 
 
5)  Acquisitions 
 
Current Period Acquisitions 
 
During the period the group made several minor acquisitions for a total purchase 
consideration  of  GBP6m.  These acquisitions resulted in the recognition of  GBP4m of 
intangible assets and  GBP1m of goodwill. 
 
 
Prior period acquisitions 
 
The  purchase  consideration  and  provisional  fair values of acquisitions made 
during  the financial  year to  31 December 2011 and  their contribution  to the 
group's  results  for  the  year  are  set  out in the group's Annual Report and 
Accounts  2011. Adjustments made  during the  six months  to 30 June 2012 to the 
provisional  calculation of the  fair values of  assets and liabilities acquired 
during  the year to  31 December 2011 amount to   GBP13m in total,  resulting in an 
equivalent  increase in the reported value of goodwill.  Adjustments made during 
the six months to 30 June 2012 to the provisional calculation of the fair values 
of  assets and liabilities acquired during the six months to 30 June 2011 amount 
to   GBP2m  with  an  equivalent  decrease  in  the reported value of goodwill.  In 
addition  to the  GBP6m total consideration above  the group has paid an additional 
 GBP2m  relating to acquisitions completed in prior years which had been recognised 
previously as deferred consideration. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the half-yearly results announcement (continued) 
 
6)  Finance income 
                                      Six months ended Six months ended     Year 
                                                                           ended 
 
                                              30.06.12         30.06.11 31.12.11 
 
                                                     GBPm                GBPm        GBPm 
=------------------------------------------------------------------------------- 
 
 
Interest receivable                                  7                8       18 
 
Expected return on defined                          41               46       93 
retirement benefit scheme assets 
=------------------------------------------------------------------------------- 
Total finance income                                48               54      111 
=------------------------------------------------------------------------------- 
 
 
7)  Finance costs 
                                      Six months ended Six months ended     Year 
                                                                           ended 
 
                                              30.06.12         30.06.11 31.12.11 
 
                                                     GBPm                GBPm        GBPm 
=------------------------------------------------------------------------------- 
 
 
Total group borrowing costs                       (57)             (54)    (117) 
 
Finance costs on defined retirement               (45)             (45)     (90) 
benefit obligations 
=------------------------------------------------------------------------------- 
Total finance costs                              (102)             (99)    (207) 
=------------------------------------------------------------------------------- 
 
 
8)  Taxation 
                         Six months ended Six months ended     Year 
                                                              ended 
 
                                 30.06.12         30.06.11 31.12.11 
 
                                        GBPm                GBPm        GBPm 
=------------------------------------------------------------------ 
 
 
UK taxation                            18                4       12 
 
Overseas taxation                    (32)             (35)     (68) 
=------------------------------------------------------------------ 
Total taxation expense               (14)             (31)     (56) 
=------------------------------------------------------------------ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the half-yearly results announcement (continued) 
 
 
9)  Earnings per share attributable to ordinary shareholders of the parent 
 
                                      Six months ended Six months ended     Year 
                                                                           ended 
 
                                              30.06.12         30.06.11 31.12.11 
 
                                                     GBPm                GBPm        GBPm 
=------------------------------------------------------------------------------- 
From continuing and 
discontinued operations 
 
 
 
Earnings 
 
Profit for the period                                                        181 
attributable to equity 
holders of the parent                               29              108 
=------------------------------------------------------------------------------- 
 
 
Number of shares (m) 
 
Weighted average number                                                    1,405 
of ordinary shares                               1,404            1,405 
=------------------------------------------------------------------------------- 
 
 
 
 
Earnings per share from continuing 
and discontinued operations (pence) 
 
Basic and diluted                                 2.1p             7.7p    12.9p 
=------------------------------------------------------------------------------- 
 
 
 
 
From adjusted earnings 
 
 
 
Earnings 
 
Profit for the period                                                        181 
attributable to equity 
holders of the parent                               29              108 
 
Adjustment to exclude                                                         25 
loss from discontinued 
operations                                           9                2 
 
Adjustment to exclude 
net retirement benefit 
finance income (net of 
tax)                                                 3              (1)      (2) 
 
Adjustment to exclude amortisation of 
acquisition-related intangible assets 
             (net of tax)                           34               31       74 
 
Adjustment to exclude                                                          1 
acquisition-related 
expenses (net of tax)                                1                1 
 
Adjustment to exclude                                                          - 
expected loss on Olympic 
contract (net of tax)                               40                - 
 
Adjustment to exclude                                                          - 
restructuring costs (net 
of tax)                                             21                - 
 
Adjustment to exclude 
aborted acquisition and 
legal settlement costs 
(net of tax)                                         -                -       42 
=------------------------------------------------------------------------------- 
Adjusted profit for the                                                      321 
period attributable to 
equity holders of the 
parent                                             137              141 
=------------------------------------------------------------------------------- 
 
 
Weighted average number                                                    1,405 
of ordinary shares (m)                           1,404            1,405 
 
Adjusted earnings per                                                      22.8p 
share (pence)                                     9.8p            10.0p 
=------------------------------------------------------------------------------- 
 
 
10)  Dividends 
 
                                              Six months     Six months     Year 
                                                   ended          ended    ended 
 
                         Pence       DKK        30.06.12       30.06.11 31.12.11 
 
                     per share per share               GBPm              GBPm        GBPm 
=------------------------------------------------------------------------------- 
 
 
Amounts recognised 
as distributions to 
equity holders of 
the parent in the 
period 
 
 
 
Final dividend for        4.73    0.4082 
the year ended 31 
December 2010                                          -             66       66 
 
Interim dividend for 
the six months ended 
30 June 2011              3.42    0.2928               -              -       48 
 
Final dividend for        5.11    0.4544 
the year ended 31 
December 2011                                         72              -        - 
 
 
=------------------------------------------------------------------------------- 
Total                                                 72             66      114 
=------------------------------------------------------------------------------- 
 
An  interim dividend of 3.42p (DKK 0.3220) per share, amounting to  GBP48m, for the 
six months ended 30 June 2012 will be paid on 19 October 2012 to shareholders on 
the register on 21 September 2012. 
 
 
 
 
 
 
 
 
 
Notes to the half-yearly results announcement (continued) 
 
11)  Disposal groups classified as held for sale 
 
At  31 December  2011, disposal  groups  classified  as  held for sale primarily 
comprised the assets and liabilities associated with the cash solutions business 
in  Sweden, which  was disposed  of on  27 February 2012, the cash solutions and 
secure  solutions businesses  in Poland  and the  UK risk assessment business in 
Afghanistan.   At  30 June  2012, disposal  groups  classified  as held for sale 
primarily  comprise  the  assets  and  liabilities  associated  with the UK risk 
assessment  business in Afghanistan and the  cash solutions and secure solutions 
businesses in Poland. 
 
12)  Analysis of net debt 
 
A reconciliation of net debt to amounts in the condensed consolidated balance 
sheet is presented below: 
 
                                                         As at    As at    As at 
 
                                                      30.06.12 30.06.11 31.12.11 
 
                                                             GBPm        GBPm        GBPm 
=------------------------------------------------------------------------------- 
 
 
Cash and cash equivalents                                  399      429      433 
 
Investments                                                 64       69       70 
 
Net debt included within assets held for sale                3        -     (10) 
 
Current liabilities 
 
   Bank overdrafts and loans                              (78)    (159)    (100) 
 
   Obligations under finance leases                       (16)     (13)     (16) 
 
   Fair value of loan note derivative financial             14       13       14 
instruments 
 
Non-current liabilities 
 
   Bank loans                                            (465)    (803)    (885) 
 
   Loan notes                                          (1,660)  (1,137)  (1,180) 
 
   Obligations under finance leases                       (48)     (55)     (48) 
 
   Fair value of loan note derivative financial            104       80      106 
instruments 
=------------------------------------------------------------------------------- 
Total net debt                                         (1,683)  (1,576)  (1,616) 
=------------------------------------------------------------------------------- 
 
 
 
An analysis of movements in net debt in the period is presented below: 
 
                                      Six months ended Six months ended     Year 
                                                                           ended 
 
                                              30.06.12         30.06.11 31.12.11 
 
                                                     GBPm                GBPm        GBPm 
=------------------------------------------------------------------------------- 
 
 
 
 
 
 
Increase in cash, cash equivalents 
and bank overdrafts per condensed                   31               80 
consolidated cash flow statement                                              87 
 
Sale of investments                                (6)             (11)     (10) 
 
Increase in debt and                              (70)            (192) 
lease financing                                                            (222) 
=------------------------------------------------------------------------------- 
Change in net debt                                (45)            (123) 
resulting from cash 
flows                                                                      (145) 
 
 
 
Borrowings acquired with                             -                - 
subsidiaries                                                                 (5) 
 
Net additions to finance                          (11)              (9) 
leases                                                                      (11) 
=------------------------------------------------------------------------------- 
Movement in net debt in                           (56)            (132) 
the period                                                                 (161) 
 
 
 
Translation adjustments                           (11)             (18)     (29) 
 
Net debt at the                                (1,616)          (1,426) 
beginning of the period                                                  (1,426) 
=------------------------------------------------------------------------------- 
Net debt at the end of                         (1,683)          (1,576) 
the period                                                               (1,616) 
=------------------------------------------------------------------------------- 
 
 
13)  Related party transactions 
 
No  related party transactions have  taken place in the  first six months of the 
current  financial year which have materially affected the financial position or 
the  performance of  the group  during that  period.  The  nature and amounts of 
related party transactions in the first six months of the current financial year 
are  consistent with  those reported  in the  group's Annual Report and Accounts 
2011. 
 
 
 
 
 
 
 
Non GAAP measure - cash flow 
 
The  directors  consider  it  is  of  assistance  to  shareholders to present an 
analysis  of the group's operating cash flow in accordance with the way in which 
the  group is managed, together  with a reconciliation of  that cash flow to the 
net   cash  flow  from  operating  activities  as  presented  in  the  condensed 
consolidated cash flow statement. 
 
Operating cash flow 
For the six months ended 30 June 2012 
 
                                      Six months ended Six months ended     Year 
                                                                           ended 
 
                                              30.06.12         30.06.11 31.12.11 
 
                                                     GBPm                GBPm        GBPm 
=------------------------------------------------------------------------------- 
 
 
PBITA before share of                              236              239 
profit from associates 
(group PBITA)                                                                529 
 
Depreciation and amortisation of 
intangible assets other than 
acquisition-related                                 75               73      132 
 
Movement in working                               (53)            (116) 
capital and provisions                                                      (74) 
 
Equity settled                                     (1)                - 
transactions                                                                   - 
 
Net cash flow from                                (60)             (53) 
capital expenditure                                                        (138) 
=------------------------------------------------------------------------------- 
Operating cash flow                                197              143      449 
=------------------------------------------------------------------------------- 
 
 
 
Reconciliation of 
operating cash flow 
 
                                      Six months ended Six months ended     Year 
                                                                           ended 
 
                                              30.06.12         30.06.11 31.12.11 
 
                                                     GBPm                GBPm        GBPm 
=------------------------------------------------------------------------------- 
 
 
Net cash flow from operating 
activities per condensed consolidated 
statement of cash flow                             170              131      372 
 
Net    cash   flow   from                         (60)             (53)    (138) 
capital expenditure 
 
Add-back cash flow from                             26                4       95 
discontinued operations 
and other items 
 
Add-back additional                                 19               19       40 
pension contributions 
 
Add-back tax paid                                   42               42       80 
=------------------------------------------------------------------------------- 
Operating cash flow                                197              143      449 
=------------------------------------------------------------------------------- 
 
 
 
 
This announcement is distributed by Thomson Reuters on behalf of 
Thomson Reuters clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
 
Source: G4S plc UK  DK via Thomson Reuters ONE 
[HUG#1636539] 
 

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