G4S PLC - Half-yearly Report - Zibb.com

Aug 27, 2008 (PR Newswire Europe via COMTEX) --

G4S plc

Interim Results Announcement

January - June 2008

G4S plc, the international security solutions group, today
announces its half year results for the six months to 30 June 2008.

RESULTS HIGHLIGHTS

- Very strong organic turnover growth* of 10.5% (2007: 7.5%)

- Group turnover* up 19.3% to GBP2,697.3 million (2007:GBP2,261.5m)

- PBITA* up 19.4% to GBP174.8 million (2007:GBP146.4m)

- Margin* maintained at 6.5%

- Cash flow generation up 35.6% to GBP132.5 million, 77% of PBITA
(2007: 71%)

- Adjusted earnings per share increased 26.3% to 7.2p (2007: 5.7p)
and by 18% at constant exchange rates (2007:6.1p)

- Interim dividend up 30% to 2.75 pence per share, DKK 0.2572 (2007: 2.11p/DKK
0.2319)

- Invested GBP533 million net in capability-building acquisitions and raised
GBP282 million via a share placing

- Good performance across all regions and business segments

- Excellent progress on the integration of GSL and ArmorGroup

- Expect to continue good performance for the full year

* at constant (2008) exchange rates

Nick Buckles, Chief Executive Officer, commented:

"Despite the well-reported difficulties in the economies of a
number of international markets, trading is ahead of where we expected it to
be at the half year - we have continued to deliver double digit organic growth
and profit margins have held firm.

Adjusted earnings per share growth has been very strong at 26.3%
and the integration of a number of major capability-building acquisitions is
on schedule and on target to deliver the expected benefits and estimated
synergy savings.

Overall, we have delivered an excellent performance for the first
half of 2008 and we are very confident for the remainder of the year."

For further enquiries, please contact:

Nick Buckles - Chief Executive Officer          +44 (0) 1293 554400
Trevor Dighton - Chief Financial Officer
Helen Parris - Director of Investor Relations

Media enquiries:

Kevin Smith - Citigate Dewe Rogerson            +44 (0) 7973 672649

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 security solutions group,
which specialises in outsourced business processes 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
over 110 countries and over 570,000 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, 10 Paternoster Square, London, EC4M 7LS. The
presentation will be webcast at:

http://www.investorcalendar.com/IC/CEPage.asp?ID=132364

A telephone dial-in facility is available on:

UK Access number +44 (0)20 8609 0581

UK Free phone* number 0800 358 1448

Denmark Toll free* number +45 808 870 69

US Toll free* number 1 866 388 1925

*If you are calling from a mobile phone your provider may charge you when
connected to our toll free /free phone number.

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              H108           H107

                                                 GBPm             GBPm
Turnover at constant exchange rates         2,697.3        2,261.5
Exchange difference                               -        (124.5)
Total continuing business turnover          2,697.3        2,137.0

Turnover, at constant exchange rates, increased by 19.3% to GBP2,697.3 million.
Organic turnover growth was 10.5%.

Organic Turnover      Europe  North America New Markets        Total
Growth *
Security Services        9.5%          6.9%       17.4%        10.4%
Cash Services           11.0%         -2.6%       15.6%        10.6%
Total                    9.9%          6.2%       17.1%        10.5%

* Calculated to exclude acquisitions and disposals, and at constant
exchange rates

Group Profit

PBITA * of Continuing Businesses           H108           H107

                                             GBPm             GBPm
PBITA at constant exchange rates          174.8          146.4
Exchange difference                           -          (7.5)
Total continuing business PBITA           174.8          138.9
PBITA margin                               6.5%           6.5%

* PBITA is defined as profit before interest, taxation and
amortisation of acquisition-related intangible assets

Cash Flow and Financing

Cash Flow                              H108           H107

                                         GBPm             GBPm
Operating cash flow                   132.5           97.7
Operating cash flow / PBITA             77%            71%

Operating cash flow, as analysed on page 24, was up 35.6% to GBP132.5
million in the period, representing 77% of PBITA. Net cash invested in
acquistions was GBP533.0 million. Net debt at the end of the period, as analysed
on page 22, was GBP1,134.2 million (June 2007:GBP801.5 m; December 2007: GBP804.9m).

Adjusted earnings per share

Adjusted earnings per share      H108     H107 at constant        H107
                                            exchange rates
                                   GBPm                   GBPm          GBPm

PBITA from continuing           174.8                146.4       138.9
operations
Interest (before pensions)     (37.5)               (27.8)      (26.8)
Tax                            (37.1)               (33.6)      (31.8)
Minorities                      (5.7)                (7.1)       (7.1)
Adjusted profit attributable     94.5                 77.9        73.2
to shareholders
Average number of shares (m)  1,310.3              1,274.4     1,274.4
Adjusted EPS (p)                 7.2p                 6.1p        5.7p

Adjusted earnings per share, reconciled to basic earnings per share
on page 21, increased by 26.3%, or by 18.0% at constant exchange rates.

BUSINESS ANALYSIS

Security Services

                      Turnover        PBITA      Margins     Organic
                                                              Growth
                         GBPm            GBPm

* At constant
exchange rates
                      H108    H107  H108  H107  H108  H107     H108
Europe *           1,054.1   874.1  64.6  53.0  6.1%  6.1%     9.5%
North America *      570.8   518.2  30.8  27.8  5.4%  5.4%     6.9%
New Markets *        509.4   379.5  38.9  31.1  7.6%  8.2%    17.4%
Total Security     2,134.3 1,771.8 134.3 111.9  6.3%  6.3%    10.4%
Services *
Exchange                 -  (95.8)     - (5.3)
differences
At actual exchange 2,134.3 1,676.0 134.3 106.6
rates

The security services business continued its strong performance
with good organic growth of 10.4% and margins constant at 6.3%.

Europe

                           Turnover      PBITA      Margins    Organic
                                                                Growth
                              GBPm           GBPm

* At constant exchange
rates
                          H108   H107  H108  H107  H108  H107     H108
UK & Ireland *           397.8  287.1  30.7  21.9  7.7%  7.6%     8.2%
Continental Europe *     656.3  587.0  33.9  31.1  5.2%  5.3%    10.1%
Total Europe *         1,054.1  874.1  64.6  53.0  6.1%  6.1%     9.5%

Organic growth in Europe was 9.5% and margins remained at 6.1%.

Organic growth increased from 6.2% in the prior year to 8.2% in the
UK & Ireland with margins also improving assisted by higher UK manned security
margins. New contracts won or commencing included security services for Shell
and port security services with ABP Humberside. The care and justice business
had a strong increase in electronic tagging and prisoner escorting volumes. In
Belfast, a new state-of-the-art security system monitoring centre was opened,
providing national and international monitoring services.

In addition a number of major capability-building acquisitions were
completed including GSL, ArmorGroup and the RockSteady Group.

In Continental Europe, organic growth from continuing operations
improved to 10.1%, compared to 6.5% in the prior year. Margins were slightly
lower due to start up costs on two aviation contracts - a new contract at Oslo
airport in Norway which successfully commenced operations in February and the
Schiphol airport contract in the Netherlands which was retained under
competitive rebid, against a new brief from the customer. Margins for the
region should improve in the second half of 2008.

G4S concluded a further 25% buy out of the businesses in the
Baltics taking the G4S holding to 90%, with the remaining 10% to be acquired
in the second half of 2008. These businesses performed well with Lithuania and
Estonia performing very strongly with excellent organic growth and strong
margins. In Luxembourg and Belgium the businesses retained the European
Parliament contracts for a further five years under competitive rebid.

Austria had strong organic growth assisted by security contracts
for the 2008 European football championships. Sweden also saw a recovery in
its organic growth with a positive margin impact.

In Greece, revenues and profits improved strongly on the same
period last year. The business was awarded two major contracts to provide
passenger screening services to four regional airports for three years, and a
four year contract to provide security services to the Athens Metro.

In Serbia, the acquisition of Progard Securitas was completed in
the first half of the year. Progard is the market leader and this acquisition
will assist G4S expansion in the region and commence operations in Croatia,
Montenegro and Macedonia through Progard's existing subsidiaries.

In Malta, the acquisition of ISecure in January 2008 enabled G4S Malta to
enter the security systems market.

North America

                          Turnover     PBITA      Margins    Organic
                                                              Growth
                             GBPm          GBPm

* At constant exchange  H108   H107  H108  H107  H108  H107     H108
rates

North America *        570.8  518.2  30.8  27.8  5.4%  5.4%     6.9%

Organic growth in North America was 6.9% and margins were unchanged at 5.4%.

The United States achieved good margin improvement in the
commercial sector through a reduction in non-billed overtime. This was offset
by significant start-up costs related to new contracts in the government
sector, in particular a large immigration monitoring contract for 27 cities.
Organic growth of 6.9% was achieved despite commencing the transition out of
the Exelon nuclear contract. Growth in WSI, the government business was double
digit, assisted by contract additions such as security services for army
bases, NYFPS and the Savannah River nuclear site.

RONCO, Touchcom and MJM were acquired during the first half and performed
strongly and in line with our expectations.

Canada had an improved performance compared to the same period in 2007, with
better margins in a continuing tough market.

New Markets

                         Turnover      PBITA      Margins    Organic
                                                              Growth
                            GBPm           GBPm

* At constant exchange  H108   H107  H108  H107  H108  H107     H108
rates

Asia *                 179.4  128.9  14.9  10.9  8.3%  8.5%    16.5%
Middle East *          119.9   85.0   8.2   7.4  6.8%  8.7%    21.9%
Africa *               111.3   85.9   9.6   7.4  8.6%  8.6%    13.9%
Latin America &         98.8   79.7   6.2   5.4  6.3%  6.8%    17.8%
Caribbean *
Total New Markets *    509.4  379.5  38.9  31.1  7.6%  8.2%    17.4%

In New Markets, organic growth was very strong at 17.4% with
margins slightly lower than the previous year due in part to the impact of the
ArmorGroup acquisition on the Middle East results, together with the expected
impact of the renegotiated Colombia tolls contract.

Organic growth in Asia was 16.5% and margins were slightly lower
than the same period last year due to higher wage and fuel costs in some
markets which we expect to pass on in the second half. Macau, Indonesia and
Pakistan all achieved organic growth of over 20%. India has won some
breakthrough contracts in the aviation and healthcare sectors. Thailand had
organic growth above 20% assisted by new contracts in the aviation and
financial services sectors.

In Bhutan there has been government approval for outsourcing of
security services to G4S which should contribute to growth in the medium term.
In March 2008 the business in Papua New Guinea became the preferred supplier
to the United Nations for manned security of domestic and commercial buildings
occupied by UN personnel, security systems monitoring and armed response
services. In China the facilities management business performed well with
organic growth of 38%. As expected, the government has indicated that the
security industry is to be partially opened to foreign participation under new
regulations.

In the Middle East there was organic growth of 21.9%, with
particularly strong performances in Kuwait, Qatar and Saudi Arabia. All
central costs for ArmorGroup have been assigned to Iraq and we expect these to
be reduced over time through synergy benefits. In Egypt, G4S was awarded the
Cairo Metro project which commenced earlier this month.

In Africa, organic growth was 13.9% and margins were maintained at
the same level as the prior half year. The acquisition of ArmorGroup
contributed to an expanding G4S footprint in Africa with current operations in
nearly 30 countries. The acquisition has also enhanced the services provided
to customers in the region, including the provision of security services to 17
US Embassies. Strong growth was achieved in Kenya, Namibia, Tanzania and
Uganda. Morocco grew very strongly due to new security solutions contracts in
the banking and oil industries with excellent margin improvements.

The Latin America and Caribbean region achieved organic growth of
17.8% and margins were 6.3%. The larger markets of Argentina, Guatemala and
Peru continued to perform very well, with the renegotiated Colombia tolls
contract impacting on margins as expected.

Cash Services

                     Turnover      PBITA        Margins    Organic
                                                            Growth
* At constant           GBPm           GBPm
exchange rates      H108   H107  H108  H107   H108   H107     H108

Europe *           402.1  359.5  39.7  34.7   9.9%   9.7%    11.0%
North America *     41.9   43.0   0.2   1.0   0.5%   2.3%    -2.6%
New Markets *      119.0   87.2  18.0  13.6  15.1%  15.6%    15.6%
Total Cash         563.0  489.7  57.9  49.3  10.3%  10.1%    10.6%
Services *
Exchange               -  (28.7)    -  (2.3)
differences
At actual exchange 563.0  461.0  57.9  47.0
rates

The cash services division performed well with organic growth of
10.6%. Margins were up slightly on the same period last year at 10.3% assisted
by higher margins in Europe but partly offset by lower margins in Canada and
New Markets.

Whilst there has been an increase in fuel costs across the
business, we expect to recover these increased costs through our price
increase programmes throughout the remainder of the year. The Retail Solutions
technology is now fully tested and is in an active roll-out phase, with pilots
in six countries and the first contracts being signed. The pilot sites and
prospects in those countries represent an opportunity of 22,000 retail sites
and we expect to have launched in at least ten countries by the end of 2008.

Organic growth in Europe was 11%. In the UK a major HBOS ATM
contract has been fully implemented and the business has won significant new
additional volumes in Scotland in both the retail and financial sectors. A new
"superbranch" has opened in Bristol and the opening of an additional
"superbranch" in central London is expected in the third quarter of 2008,
which will rationalise a number of smaller branches in the London area,
providing operational efficiencies.

Romania grew very strongly with the continued roll-out of bank
outsourcing contracts. Greece achieved strong growth through ATM servicing and
the Baltics also achieved excellent organic growth built on its strong market
positions.

In Sweden, the Swedbank ATM management contract continues to be
very successful, but is partly offset by the high operating and investment
costs of national security regulations. In Belgium, significant organic growth
came from a number of banks increasing their remote ATM estates.

Hungary had a very good first half as a result of growing cash
volumes and continuing operating efficiencies, particularly at the Budapest
cash centre.

In the Czech Republic, the business focused on improving the
security aspects of its operations after a major robbery in December 2007.
Significant investments in security technology have been made and the business
is performing very well.

The business in Poland is continuing to improve following a major
restructure based on terminating poorly performing contracts. They are
continuing to win new contracts and additional volume in both cash management
and transportation.

In Ireland a major new outsourced contract for An Post (the Post
Office) is currently being implemented, and this will provide additional
growth.

Following the restructuring of the Canada business as a consequence
of banking contract losses in Ontario in 2007, the business is running on a
stable operational platform. Following a branch and route rationalisation
project, an improved second half financial performance is expected.

G4SI, the international valuables business, achieved strong growth,
particularly in the precious metals and banknote sectors. G4SI has won major
new precious metal mine contracts in South America and Africa, and the outlook
for this sector remains very positive.

In New Markets, organic growth was 15.6% and margins were down
slightly at 15.1% as a result of the renegotiated Colombia tolls contract.
There were continued strong results in Malaysia with organic growth of nearly
20% from the growth of ATMs and cash deposit machines. In Thailand, the
business signed three new contracts - two for cash transport and management
and one for the servicing of 400 ATMs. The South Africa cash services business
acquired in March 2007 also grew nearly 20% from both the finance and retail
sectors with improved margins. Kenya performed well with organic growth of
nearly 15% despite a difficult start to the year following the political
unrest in January. Saudi Arabia grew very strongly through ATM servicing.

OTHER FINANCIAL ISSUES

Acquisitions and divestments

Our strategy implementation continues to move ahead at a good pace
and we have selected a number of countries as priorities for the
capability-building approach to driving accelerated growth and development
that we outlined to the market towards the end of 2007.

We have completed a number of acquisitions during the first half of
2008 including ArmorGroup, one of the world's leading protective security
companies, on 7 May and GSL, an international leader in the provision of
government support services, on 12 May. The group has been running detailed
worldwide integration programmes since completion of the acquisitions with the
objective of fully integrating GSL and ArmorGroup within the next six months.
That process is progressing well with management teams focused on delivering
the planned business performance and synergies.

The GSL businesses are currently being integrated into the G4S UK &
Ireland region to create a significantly stronger UK Care and Justice business
as well providing additional secure outsourcing capability in the UK
government sector. At the time of the GSL acquisition we announced that we
expected to achieve cost synergies of around GBP7 million. We expect the costs
of achieving these synergies to be charged in 2008, with the full effect of
the synergy benefits coming through in 2009.

The majority of ArmorGroup's 27 country operations have now been
merged into the relevant G4S regions. The UK elements of ArmorGroup have been
merged with G4S Risk Management Solutions to create a business which focuses
on government contracts in Afghanistan, Iraq and Kosovo as well as the
provision of mine clearance, training and risk management consultancy.

The opportunity to acquire further capability-building businesses
across the group's international footprint continues to be strong and we
expect to make further acquisitions in both developed and New Markets in areas
such as secure facilities management, cash solutions, data and document
management and risk management consulting in the second half of the year.

At the end of 2007, we signalled our intention to divest of our
remaining businesses in France and Germany. The majority of these businesses
have now been divested. We expect the remaining manned security business in
France to be divested by the end of the year.

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 are detailed on pages 20 and 21 of the
company's annual report for the financial year ended 31 December 2007, a copy
of which is available on the group website www.g4s.com.

The risks and uncertainties are expected to be the same during the
remaining six months of the financial year.

Share capital

On 13 May 2008 the group completed a placing of 127 million
ordinary shares of 25p at a price of 222p per share. Gross proceeds were
GBP281.9 million and issue costs GBP5.9 million.

Financing & Interest

The group's primary source of finance is a GBP1.1billion
multicurrency revolving credit facility provided by a consortium of lending
banks at a margin of 0.225% over LIBOR and maturing on 28 June 2012.

During the period the group also had US$550 million in financing
from the private placement of notes, maturing at various dates between 2014
and 2022 and bearing interest at rates between 5.77% and 6.06%.

At 30 June 2008 the group had other short-term committed facilities
of GBP45 million and uncommitted facilities of GBP481 million. It also had
additional committed facilities amounting to GBP350 million, bearing interest at
a margin of 0.60% over LIBOR and expiring on 31 December 2008.

On 15 July 2008 the group completed a further $514 million and GBP69
million private placement of notes, which mature at various dates between 2013
and 2020 and bear interest at rates between 6.09% and 7.56%. At the same date,
the additional GBP350 million committed facilities referred to above were
cancelled.

As of 30 June 2008, net debt was GBP1,134.2 million representing a
gearing of 80%. The group has sufficient borrowing capacity to finance current
investment plans.

Net interest payable on net debt was GBP37.5 million. This is an
increase of 40% over the 2007 cost of GBP26.8 million, due principally to the
increase in the group's average gross debt.

Also included within financing is net income of GBP2.5 million (2007:
GBP2.8 million) in respect of movements in the group's retirement benefit
obligations.

Taxation

Tax has been provided at the estimated effective tax rate for the
full year of 27.0% on adjusted earnings, compared to 27.5% for the full year
in 2007. The group believes that this rate is sustainable going forward.

Retirement benefit obligations

The group's funding shortfall on funded defined retirement benefit
schemes, on the valuation basis specified in IAS19 Employee Benefits, was GBP149
million before tax or GBP107 million after tax (31 December 2007: GBP136 million
and GBP98 million respectively). The main schemes are in the UK. The latest full
actuarial valuations were undertaken at 5 April 2006 in respect of the
Securicor scheme and 31 March 2007 in respect of the Group 4 scheme.

The valuation of gross liabilities has decreased since 31 December
2007 due to an increase in the appropriate AA corporate bond rate from 5.8% to
6.6%. However, the value of the assets held in the funds (adjusted for
acquired pension funds and additional contributions) decreased by GBP97 million
during the period. Additional company contributions were GBP25 million and a
further GBP2 million of additional contributions is payable in the second half
of the year.

The group believes 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 anticipates that, in the
medium term, additional cash contributions will continue to be made at least
at a level similar to that in 2008.

Dividend

The Board has declared an interim dividend for 2008 of 2.75p per
share (DKK 0.2572) payable on 31 October 2008. This represents an increase of
30% on the interim dividend for 2007 and a prospective dividend cover of 2.5
times (2007: 2.7 times) on adjusted earnings for the year.

REVIEW AND OUTLOOK

Trading for the first half of the year was ahead of our
expectations and we have continued to achieve double digit organic growth and
good margins despite the general economic difficulties in some key countries
across the world.

This strong trading performance, along with our strategy of
acquiring capability-building businesses and driving through the relevant
synergy benefits from major acquisitions, provides us with confidence for the
second half.

As well as growing earnings per share by 26.3% we have also
increased dividend per share by 30%, further reflecting the continued strong
momentum of the business.

The opportunity to acquire further capability-building businesses
across the group's international footprint continues to be strong and we hope
to make further focussed acquisitions in developed and in New Markets
including areas such as secure facilities management, cash solutions, data and
document management and risk management in the second half of the year.

Our strategy implementation continues to move ahead at a good pace
and we have selected a number of countries as our priorities for moving
forward to drive accelerated growth and development that we outlined to the
market towards the end of 2007.

Overall, we have had an excellent performance for the first half of
2008 and are very confident for the remainder of the year.

27 August 2008

G4S plc

Unaudited interim results announcement
For the six months ended 30 June 2008

Directors' responsibility statement in respect of the interim 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 Interim Management Report includes a fair review of the information
required by:

(a) DTR 4.2.7R of the Disclosure Rules and Transparency Rules,
being an indication of important events that have occurred during the first
six months of the financial year ending 31 December 2008 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 financial 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 financial year ending 31 December 2008 and that have materially affected
the financial position or performance of G4S Plc during that period; and any
changes in the related party transactions described in the Annual Report 2007
that could do so.

The responsibility statement is signed by:

Nick Buckles Trevor Dighton

Chief Executive Chief Financial Officer


G4S plc

Unaudited interim results announcement
For the six months ended 30 June 2008

Consolidated income statement
For the six months ended 30 June 2008
                                                              Six months  Six months     Year
                                                                   ended       ended    ended
                                                                30.06.08    30.06.07 31.12.07
                                                       Notes          GBPm          GBPm       GBPm

Continuing operations

Revenue                                                    2     2,697.3     2,137.0  4,483.5

Profit from operations before amortisation of
acquisition-related intangible assets and share
of profit from associates                                          173.0       137.5    308.4
Share of profit from associates                                      1.8         1.4      3.0

Profit from operations before amortisation of
acquisition-related intangible assets (PBITA)              2       174.8       138.9    311.4

Amortisation of acquisition-related intangible                    (30.4)      (18.9)   (41.6)
assets

Profit from operations before interest and              2, 3       144.4       120.0    269.8
taxation (PBIT)

Finance income                                             6        50.0        44.6     92.6
Finance costs                                              7      (85.0)      (68.6)  (146.3)

Profit from operations before taxation (PBT)                       109.4        96.0    216.1

Taxation:
- Before amortisation of acquisition-related intangible           (37.8)      (32.6)   (70.9)
assets
- On amortisation of acquisition-related                             8.5         5.5     14.9
intangible assets
                                                           8      (29.3)      (27.1)   (56.0)

Profit from continuing operations after taxation                    80.1        68.9    160.1

(Loss)/profit from discontinued operations                 4           -       (0.5)      0.5

Profit for the period                                               80.1        68.4    160.6

Attributable to:
Equity holders of the parent                                        74.4        61.3    147.2
Minority interests                                                   5.7         7.1     13.4

Profit for the period                                               80.1        68.4    160.6

Earnings per share attributable to ordinary                9
equity shareholders of the parent from
continuing and discontinued operations

Basic                                                               5.7p        4.8p    11.5p
Diluted                                                             5.7p        4.8p    11.5p

Dividends declared and proposed in respect of the
period                                                    10
Interim dividend of 2.75p per share (2007: 2.11p                    38.7        27.0     27.3
per share)
Final dividend (2007: 2.85p per share)                                 -           -     36.3
Total                                                               38.7        27.0     63.6


Condensed consolidated balance sheet
As at 30 June 2008
                                                            As at     As at     As at
                                                         30.06.08  30.06.07  31.12.07
                                                  Notes        GBPm        GBPm        GBPm
ASSETS

Non-current assets
Goodwill                                                  1,702.8   1,273.2   1,336.0
Other acquisition-related intangible assets                 425.1     229.6     222.5
Other intangible assets                                      37.9      22.5      31.3
Property, plant and equipment                               459.5     358.4     401.7
Investment in associates                                      3.0       9.6      10.2
Trade and other receivables                                 143.9     118.5     153.8
                                                          2,772.2   2,011.8   2,155.5

Current assets
Inventories                                                  72.3      52.3      57.9
Investments                                                  72.3      72.8      73.2
Trade and other receivables                               1,085.0     863.3     886.0
Cash and cash equivalents                                   446.6     306.9     381.3
Assets classified as held for sale                   11     111.1      22.3     130.9
                                                          1,787.3   1,317.6   1,529.3

Total assets                                              4,559.5   3,329.4   3,684.8

LIABILITIES

Current liabilities
Bank overdrafts                                           (127.1)    (97.1)   (109.9)
Bank loans                                                 (59.8)    (44.3)    (80.6)
Obligations under finance leases                           (19.0)    (12.5)    (16.2)
Trade and other payables                                  (950.0)   (756.9)   (868.2)
Provisions                                                (137.8)    (72.1)    (72.9)
Liabilities associated with assets classified as     11    (74.8)    (13.2)    (78.3)
held for sale
                                                        (1,368.5)   (996.1) (1,226.1)

Non-current liabilities
Bank loans                                              (1,112.5)   (713.6)   (729.1)
Loan notes                                                (290.8)   (274.1)   (290.4)
Obligations under finance leases                           (61.1)    (40.3)    (46.0)
Trade and other payables                                   (37.1)    (30.1)    (38.7)
Provisions                                                (272.5)   (176.5)   (231.5)
                                                        (1,774.0) (1,234.6) (1,335.7)

Total liabilities                                       (3,142.5) (2,230.7) (2,561.8)

Net assets                                                1,417.0   1,098.7   1,123.0

EQUITY

Share capital                                               352.1     320.2     320.2
Share premium and reserves                                1,030.1     748.0     766.9
Equity attributable to equity holders of the         12   1,382.2   1,068.2   1,087.1
parent
Minority interests                                           34.8      30.5      35.9
Total equity                                              1,417.0   1,098.7   1,123.0


Condensed consolidated cash flow statement
For the six months ended 30 June 2008
                                                           Six months  Six months     Year
                                                                ended       ended    ended
                                                             30.06.08    30.06.07 31.12.07
                                                    Notes          GBPm          GBPm       GBPm

Profit from continuing operations before taxation               109.4        96.0    216.1
Loss/(profit) from discontinued operations before                   -       (0.4)
taxation                                                                               0.4

Adjustments for:
Finance income                                                 (50.0)      (44.6)   (92.6)
Finance costs                                                    85.0        68.6    146.3
Finance costs attributable to discontinued                        1.9         1.0      3.3
operations
Depreciation of property, plant and equipment                    48.9        44.0     91.1
Amortisation of acquisition-related intangible                   30.4        18.9     41.6
assets
Amortisation of other intangible assets                           4.8         3.8      8.5
Other operating cash flow movements                               1.1           -   (25.3)
Operating cash flow before movements in working                 231.5       187.3    389.4
capital

Net working capital movement                                   (64.1)      (71.6)   (31.9)
Cash generated by operations                                    167.4       115.7    357.5

Tax paid                                                       (37.9)      (29.8)   (66.2)
Net cash flow from operating activities                         129.5        85.9    291.3

Investing activities
Interest received                                                 7.7         7.1     24.9
Cash flow from/(to) associates                                    9.5       (0.4)      1.0
Net cash flow from capital expenditure                         (61.1)      (44.2)  (109.0)
Net cash flow from acquisitions and disposals                 (308.0)      (98.7)  (132.1)
Sale/(purchase) of trading investments                            1.9       (2.3)    (0.3)
Own shares purchased                                            (4.5)           -    (3.1)
Net cash used in investing activities                         (354.5)     (138.5)  (218.6)

Financing activities
Share issues                                                    276.8         0.9      0.9
Dividends paid to minority interests                            (3.4)       (0.5)    (3.8)
Loan to minority interests                                      (4.2)           -   (13.3)
Dividends paid to equity shareholders of the                   (36.4)      (32.0)
parent                                                                              (59.3)
Net increase in borrowings                                      129.4       122.8    140.4
Interest paid                                                  (50.4)      (30.6)   (79.9)
Net cash flow from translation hedging financial               (39.0)       (2.2)
instruments                                                                          (4.3)
Repayment of obligations under finance leases                   (4.8)       (5.8)    (4.6)
Net cash flow from financing activities                         268.0        52.6   (23.9)

Net increase in cash, cash equivalents and bank
overdrafts 13                                                    43.0           -     48.8

Cash, cash equivalents and bank overdrafts at the               270.7       210.0    210.0
beginning of the period
Effect of foreign exchange rate fluctuations on                   8.6           -     11.9
cash held
Cash, cash equivalents and bank overdrafts at the               322.3       210.0    270.7
end of the period


Consolidated statement of recognised income and expense
For the six months ended 30 June 2008

                                                       Six months  Six months     Year
                                                            ended       ended    ended
                                                         30.06.08    30.06.07 31.12.07
                                                               GBPm          GBPm       GBPm

Exchange differences on translation of foreign               25.8       (2.7)     37.4
operations
Actuarial (losses)/gains on defined retirement             (56.5)       147.1     64.7
benefit schemes
Change in fair value of cash flow hedging                     5.0         4.0    (7.0)
financial instruments
Change in fair value of net investment hedging             (19.1)         0.3   (19.0)
financial instruments
Tax on items taken directly to equity                        27.5      (47.4)   (14.0)
Net income/(expense) recognised directly in                (17.3)       101.3     62.1
equity
Profit for the period                                        80.1        68.4    160.6
Net recognised income                                        62.8       169.7    222.7

Attributable to:
Equity holders of the parent                                 57.1       162.6    209.3
Minority interests                                            5.7         7.1     13.4
Net recognised income                                        62.8       169.7    222.7


Notes to the interim 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
2008. These interim financial results do not comprise statutory accounts
within the meaning of Section 240 of the Companies Act 1985 and should be read
in conjunction with the Annual Report and Accounts 2007.

The comparative figures for the financial year ended 31 December
2007 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 237 of the Companies Act 1985.

The condensed financial statements of the group presented in this
interim announcement have been prepared in accordance with IAS 34 Interim
Financial Reporting, 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 2007.

The financial information in these condensed financial statements
for the half years to 30 June 2008 and 30 June 2007 have been neither audited
nor verified.

The comparative income statement for the six months ended 30 June
2007 has been re-presented for operations qualifying as discontinued during
the six months ended 31 December 2007 and the six months ended 30 June 2008.
The comparative income statement for the year ended 31 December 2007 has been
re-presented for operations qualifying as discontinued during the six months
ended 30 June 2008. For the six months ended 30 June 2007, revenue has been
reduced by GBP126.9m and PBT has been increased by GBP0.4m compared to the figures
published previously. For the year ended 31 December 2007, revenue has been
reduced by GBP6.9m and PBT has been reduced by GBP0.7m compared to the figures
published previously.

The comparative balance sheet as at 30 June 2007 has been restated
to reflect the completion during the six months ended 31 December 2007 and the
six months ended 30 June 2008 of the initial accounting in respect of
acquisitions made during the six months ended 30 June 2007. Adjustments made
to the provisional calculation of fair values of assets and liabilities
acquired and the consideration payable amount to GBP8.6m, with an equivalent
increase in the reported value of goodwill.

The comparative balance sheet as at 31 December 2007 has been
restated to reflect (i) the completion during the six months ended 30 June
2008 of the initial accounting in respect of acquisitions made during the six
months ended 30 June 2007, and (ii) adjustments made in the six months to 30
June 2008 to the preliminary assessment of the fair values of assets and
liabilities acquired during the six months ended 31 December 2007. Adjustments
made to the provisional calculation of the fair values of assets and
liabilities acquired and the consideration payable amount to GBP3.6m, with an
equivalent increase in the reported value of goodwill.

2) Segmental analysis

The group operates in two core product areas: security services and
cash services. The group operates on a worldwide basis and derives a
substantial proportion of its revenue and profits from each of the following
geographic regions: Europe (comprising the United Kingdom and Ireland, and
Continental Europe), North America, and New Markets (comprising the Middle
East and Gulf States, Latin America and the Caribbean, Africa, and Asia
Pacific).

The current management structure of the group is a combination of
product area and geography, within which the larger businesses generally
report by product area. The group's primary segmentation is therefore by
business segment and its secondary segmentation is by geography.

Notes to the interim results announcement (continued)

Segment information for continuing operations is presented below:

Segment revenue

                                            Six months  Six months     Year
                                                 ended       ended    ended
                                              30.06.08    30.06.07 31.12.07
                                                    GBPm          GBPm       GBPm

Security Services
UK and Ireland                                   397.8       283.9    593.0
Continental Europe                               656.3       508.2  1,078.3
Europe                                         1,054.1       792.1  1,671.3
North America                                    570.8       515.8  1,043.8
Middle East and Gulf States                      119.9        84.7    177.9
Latin America and the Caribbean                   98.8        75.0    158.0
Africa                                           111.3        84.6    183.9
Asia Pacific                                     179.4       123.8    268.9
New Markets                                      509.4       368.1    788.7
Total Security Services                        2,134.3     1,676.0  3,503.8

Cash Services
Europe                                           402.1       337.3    706.3
North America                                     41.9        38.4     78.0
New Markets                                      119.0        85.3    195.4
Total Cash Services                              563.0       461.0    979.7
Total revenue                                  2,697.3     2,137.0  4,483.5
Segment result

                                                           Six months  Six months     Year
PBITA by business segment                                       ended       ended    ended
                                                             30.06.08    30.06.07 31.12.07
                                                                   GBPm          GBPm       GBPm

Security Services
UK and Ireland                                                   30.7        21.8     48.4
Continental Europe                                               33.9        27.0     61.5
Europe                                                           64.6        48.8    109.9
North America                                                    30.8        27.7     61.5
Middle East and Gulf States                                       8.2         7.4     14.2
Latin America and the Caribbean                                   6.2         4.9     10.3
Africa                                                            9.6         7.1     16.0

Asia Pacific                                                     14.9        10.7     22.9
New Markets                                                      38.9        30.1     63.4
Total Security Services                                         134.3       106.6    234.8

Cash Services
Europe                                                           39.7        32.8     77.4
North America                                                     0.2         0.9      0.6
New Markets                                                      18.0        13.3     29.0
Total Cash Services                                              57.9        47.0    107.0
Total PBITA before head office costs                            192.2       153.6    341.8
Head office costs                                              (17.4)      (14.7)   (30.4)
Total PBITA                                                     174.8       138.9    311.4

Result by business segment

Total PBITA                                                     174.8       138.9    311.4
Amortisation of acquisition-related intangible assets          (30.4)      (18.9)   (41.6)
Total PBIT                                                      144.4       120.0    269.8

Security Services                                               115.9        98.2    215.4
Cash Services                                                    45.9        36.5     84.8
Head office costs                                              (17.4)      (14.7)   (30.4)
Total PBIT                                                      144.4       120.0    269.8
Notes to the interim results announcement (continued)

3) Profit from operations before interest and taxation

The income statement can be analysed as follows:

                                                       Six months  Six months      Year
                                                            ended       ended     ended
Continuing operations                                    30.06.08    30.06.07  31.12.07
                                                               GBPm          GBPm        GBPm

Revenue                                                   2,697.3     2,137.0   4,483.5
Cost of sales                                           (2,108.7)   (1,660.3) (3,479.2)
Gross profit                                                588.6       476.7   1,004.3
Administration expenses                                   (446.0)     (358.1)   (737.5)
Share of profit from associates                               1.8         1.4       3.0
Profit from operations before interest and                  144.4       120.0     269.8
taxation
Included within administration expenses is the amortisation charge for
acquisition-related intangible assets.

4) Discontinued operations

Operations qualifying as discontinued in the current period
primarily comprise the security services business in Germany, which
principally comprises G4S Sicherheitsdienste GmbH and G4S Sicherheitssysteme
GmbH, disposed of on 15 May 2008, and the security services business in
France, which principally comprises Group 4 Securicor SAS, the disposal of
which is still in progress. Further operations qualifying as discontinued in
the prior year primarily comprise G4S Cash Services (France) SAS, disposed of
on 2 July 2007.

Notes to the interim results announcement (continued)

5) Acquisitions

Current Period Acquisitions

The most significant acquisition in subsidiary undertakings in the
period was the purchase of De Facto 1119 Limited, the holding company of the
Global Solutions group ("GSL") an international leader in the provision of
support services for governments, companies and public authorities, based in
the UK, which was completed on 12 May 2008. Other principal acquisitions in
subsidiary undertakings in the period include the purchases of ArmorGroup
International plc, an international provider of defensive, protective security
services, head-quartered in the UK; Touchcom, Inc., a security consultancy and
design business in the US; RONCO Consulting Corporation, an international
provider of humanitarian mine action and ordnance services, specialised
security and training, head-quartered in the US; MJM Investigations, Inc., a
provider of insurance fraud mitigation and claims services in the US; the Rock
Steady group of companies, providing event security in the UK; and Travel
Logistics Limited, a provider of passport and visa services in the UK. In
addition, the group completed the acquisition of a further 25% of Aktsiaselts
G4S Baltics, increasing to 90% its holding in this company, the holding
company of the G4S subsidiaries in Estonia, Latvia and Lithuania, which
provide both security services and cash services. This transaction was largely
accrued at 31 December 2007 through the recognition of a put option. The group
also acquired the 49% of G4S Macau Limitada, a provider of both security
services and cash services that it did not already own.

The following table sets out the book values and provisional fair
values at acquisition of the identifiable assets and liabilities acquired by
the group during the period:

                                                               Fair value
                                                   Book value adjustments Fair value
                                                           GBPm          GBPm         GBPm
Acquisition-related intangible assets                     2.9       231.1      234.0
Other intangible assets                                   2.2           -        2.2
Investment in associates                                  2.9       (1.0)        1.9
Property, plant and equipment                            40.7       (7.6)       33.1
Inventories                                               4.1       (0.1)        4.0
Trade and other receivables                             125.3         4.6      129.9
Deferred tax assets                                       7.5       (1.7)        5.8
Cash and cash equivalents                                16.0         1.0       17.0
Trade and other payables                              (116.3)       (7.6)    (123.9)
Provisions                                                4.3      (18.6)     (14.3)
Borrowings                                            (224.7)       (0.3)    (225.0)
Deferred tax liabilities                                (1.2)      (65.9)     (67.1)
Net assets acquired of subsidiary undertakings        (136.3)       133.9      (2.4)
Acquisition of minority interests                         3.9           -        3.9
Goodwill                                                                       342.2
Total purchase consideration                                                   343.7

Satisfied by:
Cash                                                                           314.4
Transaction costs                                                               10.5
Contingent consideration                                                        18.8
Total purchase consideration                                                   343.7

Adjustments made to identifiable assets and liabilities on
acquisition are to reflect their fair value. These include the recognition of
customer-related intangible assets amounting to GBP231.1m attributable to the
acquisition of subsidiary undertakings. The fair values of net assets acquired
are provisional and represent estimates following a preliminary valuation
exercise. These estimates may be adjusted to reflect refinements in their
calculation and any development in the issues to which they relate. Final fair
value adjustments will, if required, be set out in the group's 2008 Annual
Report and Accounts and/or in the group's 2009 Annual Report and Accounts as
appropriate.

The goodwill arising on acquisitions can be ascribed to the
existence of a skilled, active workforce and the opportunities to obtain new
contracts and develop the business. Neither of these meets the criteria for
recognition as intangible assets separable from goodwill. Goodwill arising on
acquisition includes GBP13.7m arising on the acquisition of minority interests.


Notes to the interim results announcement (continued)

5) Acquisitions (continued)

From their respective dates of acquisition, the acquired businesses'
contribution to the results of the group for the period was as follows:

Contribution from acquired businesses         Revenue   PBITA  Profit
                                                   GBPm      GBPm      GBPm
GSL                                              79.5     5.8     2.4
ArmorGroup                                       27.2     0.9     0.2
Touchcom                                          0.7       -       -
RONCO                                            10.4     1.0     0.5
MJM                                               4.8     0.2       -
Rock Steady                                       3.5     0.4     0.1
Travel Logistics                                  3.2     0.6     0.3
Others                                            3.1     0.5     0.4
Total contribution from acquired businesses     132.4     9.4     3.9

If all the acquisitions had occurred on 1 January 2008 the results of the
group for the period would have been as follows:

Group's results if all acquisitions had occurred on
1 January 2008                                         Revenue   PBITA  Profit
                                                            GBPm      GBPm      GBPm
Group results for the period                           2,697.3   174.8    80.1
Impact of backdating acquisitions to 1 January 2008
GSL                                                      159.0    13.6     5.3
ArmorGroup                                                54.4     1.8     0.5
Touchcom                                                   3.5       -   (0.2)
RONCO                                                     20.8     2.0     1.0
MJM                                                        4.8     0.2       -
Rock Steady                                                3.5     0.4     0.3
Travel Logistics                                           0.7     0.1     0.1
Others                                                     4.9     0.9     0.3
Group result for the period if all acquisitions had    2,948.9   193.8    87.4
occurred on 1 January 2008
Acquisition of GSL

The separately identifiable assets and liabilities of GSL as at the
acquisition date are presented in the table below.

                                                               Fair value
                                                   Book value adjustments Fair value
                                                           GBPm          GBPm         GBPm
Acquisition-related intangible assets                       -       182.8      182.8
Investment in associates                                  2.9       (1.1)        1.8
Property, plant and equipment                            20.6       (7.3)       13.3
Inventories                                               0.6           -        0.6
Trade and other receivables                              67.0         6.3       73.3
Deferred tax assets                                       4.5       (1.7)        2.8
Cash and cash equivalents                                 7.1         1.0        8.1
Trade and other payables                               (82.9)       (4.6)     (87.5)
Provisions                                                4.4         3.6        8.0
Borrowings                                            (206.9)       (0.4)    (207.3)
Deferred tax liabilities                                    -      (51.1)     (51.1)
Minority interests                                      (0.4)           -      (0.4)
Net assets acquired of subsidiary undertakings        (183.1)       127.5     (55.6)
Goodwill                                                                       230.2
Total purchase consideration                                                   174.6

Satisfied by:
Cash                                                                           167.8
Transaction costs                                                                6.8
Total purchase consideration                                                   174.6
Notes to the interim results announcement (continued)

5) Acquisitions (continued)

Prior period acquisitions

The purchase consideration and provisional fair values of
acquisitions made during the financial year to 31 December 2007 and their
contribution to the group's results for the year are set out in the group's
Annual Report and Accounts 2007. Adjustments made during the six months to 30
June 2008 to the provisional calculation of the fair values of assets and
liabilities acquired and the consideration payable during the year to 31
December 2008 amount to GBP3.6m, with an equivalent increase in the reported
value of goodwill.

6) Finance income

                                                       Six months  Six months     Year
                                                            ended       ended    ended
                                                         30.06.08    30.06.07 31.12.07
                                                               GBPm          GBPm       GBPm

Interest receivable                                           7.1         5.8     15.1
Expected return on defined retirement benefit                42.9        38.8     77.3
scheme assets
Net gain in fair value adjustments arising from                 -           -      0.2
loan note hedging
Total finance income                                         50.0        44.6     92.6

7) Finance costs

                                                       Six months  Six months     Year
                                                            ended       ended    ended
                                                         30.06.08    30.06.07 31.12.07
                                                               GBPm          GBPm       GBPm

Total group borrowing costs                                (44.6)      (32.6)   (74.0)
Finance costs on defined retirement benefit                (40.4)      (36.0)   (72.3)
obligations
Total finance costs                                        (85.0)      (68.6)  (146.3)

8) Taxation

                                             Six months  Six months     Year
                                                  ended       ended    ended
                                               30.06.08    30.06.07 31.12.07
                                                     GBPm          GBPm       GBPm

UK taxation                                       (4.2)       (3.1)    (8.2)
Overseas taxation                                (25.1)      (24.0)   (47.8)
Total taxation expense                           (29.3)      (27.1)   (56.0)

Notes to the interim results announcement (continued)

9) Earnings per share attributable to ordinary shareholders of the parent

                                                              Six months  Six months     Year
                                                                   ended       ended    ended
                                                                30.06.08    30.06.07 31.12.07
                                                                      GBPm          GBPm       GBPm
From continuing and discontinued operations

Earnings
Profit for the period attributable to equity
holders of the parent                                               74.4        61.3    147.2
Effect of dilutive potential ordinary shares (net
of tax)                                                              0.1         0.1      0.2
Profit for the purposes of diluted earnings per
share                                                               74.5        61.4    147.4

Number of shares (m)
Weighted average number of ordinary shares                       1,310.3     1,274.4  1,275.2
Effect of dilutive potential ordinary shares                         1.4         1.4      1.5
Weighted average number of ordinary shares for
the purposes of diluted earnings per share                       1,311.7     1,275.8  1,276.7

Earnings per share from continuing and discontinued
operations (pence)
Basic                                                               5.7p        4.8p    11.5p
Diluted                                                             5.7p        4.8p    11.5p

From adjusted earnings

Earnings
Profit for the period attributable to equity
holders of the parent                                               74.4        61.3    147.2
Adjustment to exclude loss/(profit) from
discontinued operations                                                -         0.5    (0.5)
Adjustment to exclude net retirement benefit
finance income (net of tax)                                        (1.8)       (2.0)    (3.6)
Adjustment to exclude amortisation of acquisition-related
intangible assets (net of tax)                                      21.9        13.4     26.7
Adjusted profit for the period attributable to
equity holders of the parent                                        94.5        73.2    169.8

Weighted average number of ordinary shares (m)                   1,310.3     1,274.4  1,275.2
Adjusted earnings per share (pence)                                 7.2p        5.7p    13.3p

10) Dividends

                                                          Six months  Six months     Year
                                                               ended       ended    ended
                                         Pence       DKK    30.06.08    30.06.07 31.12.07
                                     per share per share          GBPm          GBPm       GBPm

Amounts recognised as distributions
to equity holders of the parent in
the period

Final dividend for the year ended 31
December 2006                             2.52    0.2766           -        32.0     32.0
Interim dividend for the six months
ended 30 June 2007                        2.11    0.2319           -           -     27.3
Final dividend for the year ended 31
December 2007                             2.85    0.2786        36.4           -        -
Total                                                           36.4        32.0     59.3

An interim dividend of 2.75p (DKK 0.2572) per share, amounting to
GBP38.7m, for the six months ended 30 June 2008 will be paid on 31 October 2008
to shareholders on the register on 26 September 2008.

11) Disposal groups classified as held for sale

Disposal groups classified as held for sale at 30 June 2008
primarily comprise the assets and liabilities associated with the security
services businesses in France, which principally include Group 4 Securicor
SAS. At 31 December 2007 disposal groups classified as held for sale also
included the assets and liabilities associated with the security services
businesses in Germany, which principally include G4S Sicherheitsdienste GmbH
and G4S Sicherheitssysteme GmbH.

Notes to the interim results announcement (continued)

12) Reconciliation of equity attributable to equity holders of the parent

                                                       Six months  Six months     Year
                                                            ended       ended    ended
                                                         30.06.08    30.06.07 31.12.07
                                                               GBPm          GBPm       GBPm

At beginning of period                                    1,087.1       935.2    935.2
Net recognised income attributable to equity
shareholders of the parent                                   57.1       162.6    209.3
Shares issued                                               276.8         0.9      0.9
Dividends declared                                         (36.4)      (32.0)   (59.3)
Own shares purchased                                        (4.5)           -    (3.1)
Equity settled transactions                                   2.1         1.5      4.1
At end of period                                          1,382.2     1,068.2  1,087.1

On 13 May 2008 the group completed a placing of 127m ordinary
shares of 25p at a price of 222p per share. Gross proceeds were GBP281.9m and
issue costs GBP5.9m. The placing enabled the group to reduce borrowings incurred
in connection with its expenditure on acquisitions during the period and
increased its capacity to make further acquisitions.

13) 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
                                                       30.06.08 30.06.07 31.12.07
                                                             GBPm       GBPm       GBPm

Cash and cash equivalents                                 446.6    306.9    381.3
Investments                                                72.3     72.8     73.2
Net debt included within assets held for sale               2.7      0.7    (1.5)
Current liabilities
Bank overdrafts and loans                               (186.9)  (141.4)  (190.5)
Obligations under finance leases                         (19.0)   (12.5)   (16.2)
Fair value of loan note derivative financial               14.5        -     14.3
instruments
Non-current liabilities
Bank loans                                            (1,112.5)  (713.6)  (729.1)
Loan notes                                              (290.8)  (274.1)  (290.4)
Obligations under finance leases                         (61.1)   (40.3)   (46.0)
Total net debt                                        (1,134.2)  (801.5)  (804.9)

An analysis of movements in net debt in the period is presented below:

                                                     Six months  Six months     Year
                                                          ended       ended    ended
                                                       30.06.08    30.06.07 31.12.07
                                                             GBPm          GBPm       GBPm

Increase in cash, cash equivalents and bank
overdrafts per condensed consolidated cash flow
statement                                                  43.0           -     48.8
(Sale)/ purchase of investments                           (1.9)         2.3      0.3
Increase in debt and lease financing                    (124.6)     (117.0)  (135.8)
Change in net debt resulting from cash flows             (83.5)     (114.7)   (86.7)

Borrowings acquired with subsidiaries                   (225.0)      (19.9)   (22.9)
Net additions to finance leases                           (8.3)       (3.6)   (10.3)
Movement in net debt in the period                      (316.8)     (138.2)  (119.9)

Translation adjustments                                  (12.5)         9.5   (12.2)
Net debt at the beginning of the period                 (804.9)     (672.8)  (672.8)
Net debt at the end of the period                     (1,134.2)     (801.5)  (804.9)

Notes to the interim results announcement (continued)

14) 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 2007.

15) Events after the balance sheet date

On 15 July 2008, to further diversify its sources of funding and to
lengthen the maturity of its debt, the group completed a $541m and GBP69m
private placement of unsecured senior loan notes. The proceeds of the issue
were used to reduce drawings against the revolving credit bank facility.

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 2008
                                                              Six months  Six months     Year
                                                                   ended       ended    ended
                                                                30.06.08    30.06.07 31.12.07
                                                                      GBPm          GBPm       GBPm

PBITA before share of profit from associates                       173.0       137.5    308.4
(group PBITA)
Depreciation and amortisation of intangible assets other
than acquisition-related                                            53.7        47.6     99.6
Profit on disposal of property, plant and
equipment and intangible assets other than
acquisition-related                                                    -           -   (14.4)
Increase in working capital and provisions                        (33.1)      (43.2)    (8.2)
Net cash flow from capital expenditure                            (61.1)      (44.2)  (109.0)
Operating cash flow                                                132.5        97.7    276.4

Reconciliation of operating cash flows
                                                          Six months  Six months     Year
                                                               ended       ended    ended
                                                            30.06.08    30.06.07 31.12.07
                                                                  GBPm          GBPm       GBPm

Net cash flow from operating activities per condensed
consolidated cash flow statement                               129.5        85.9    291.3
Net cash flow from capital expenditure                        (61.1)      (44.2)  (109.0)
Add-back cash flow from exceptional items and                    1.2         1.0      1.8
discontinued operations
Add-back additional pension contributions                       25.0        22.5     26.1
Other items                                                        -         2.7        -
Add-back tax paid                                               37.9        29.8     66.2
Operating cash flow                                            132.5        97.7    276.4




END

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