G4S plc UK : G4S plc UK : Annual Financial Report

              G4S plc UK : G4S plc UK : Annual Financial Report

15 April 2013

                                   G4S PLC

                           ANNUAL FINANCIAL REPORT

Further to the preliminary announcement of  its results for the year ended  31 
December 2012  which it  made on  13 March  2013, G4S  plc, the  international 
secure solutions outsourcing  provider, announces  that it  has published  its 
Annual Report and Accounts for the same period.

The full Annual  Report and  Accounts has  been posted  to shareholders.  The 
document includes the  notice of  the company's Annual  General Meeting  which 
will be held on Thursday 6 June  2013 at Salters' Hall, 4 Fore Street,  London 
EC2Y 5DE at 2.00 pm.  A proxy form for  the company's Annual General  Meeting 
accompanies annual reports posted to shareholders.

The  Annual  Report  and  Accounts,  including  the  notice  of  meeting   and 
explanatory notes  accompanying  it,  has  been  submitted  to,  and  will  be 
available from, the National Storage Mechanism.

The Annual Report and  Accounts and the Notice  of Annual General Meeting  are 
now available to view or download in a pdf format from the company's  website: 

A condensed set  of the  company's financial  statements and  extracts of  the 
management report were  included in  the company's  preliminary final  results 
announcement.  That  information,   together  with  the   Appendix  to   this 
announcement, which contains additional  information which has been  extracted 
from the  Annual Report  and Accounts  for the  year ended  31 December  2012, 
constitutes the  material required  for the  purposes of  compliance with  the 
Transparency Rules  and should  be read  together with  the preliminary  final 
results announcement which can be downloaded from the company's website. This
announcement should be read  in conjunction with and  is not a substitute  for 
reading the full Annual  Report and Accounts.  Together these constitute  the 
information required by  DTR 6.3.5, which  is required to  be communicated  in 
unedited full text through a Regulatory Information Service. 

References in this announcement to the company's website are intended to refer
only to the specific documents mentioned  herein and not to other  information 
available on that website.


The group's principal risks and uncertainties:

A description of the principal risks and uncertainties that the company  faces 
is extracted from pages 46 and 47 of the 2012 Annual Report and Accounts.

Our risk assessment and managementprocess

The group operates around 160 businesses spread over more than 125 countries
and across a range of product areas. Most of the risks identified below are
market specific and so the diversity of the group's operations means any
particular issue should have a limited impact.

                              Price competition

Risk and potential impact to KPI

The security industry comprises a number of very competitive markets. In
particular, manned security markets can be fragmented with relatively low
economic barriers to entry and the group competes with a wide variety of
operators of varying sizes. Actions taken by the group's competitors may place
pressure upon its pricing, margins and profitability.


Group management continually monitors competitor activity to ensure that the
group can react quickly to any competitor actions which would directly affect
the group'sresults.

All business plans and strategic planning includes competitor and SWOT
analysis and the pricing strategy for contracts is managed through business
unit and regional price approval levels. Significant price reductions require
group capex committee approval.

           Poor operational service delivery and crisis management

Risk and potential impact to KPI

Failure to meet the operational requirements of its customers and/or failure
to respond to a crisis could significantly impact the group's reputation,
contract retention and growth.


Group-wide operational procedures and standards for crisis management and
communication are in place and adherence to them is tested in all business
units. There is also a robust supervision structure which allows management to
monitor the progress and delivery ofthegroup's contracts and customer

The group crisis communications process is reviewedregularly.

                       Inappropriate sourcing of staff

Risk and potential impact to KPI

Poor selection processes when recruiting staff could have material
implications given the critical nature of the services undertaken by the
group. There could also be risks associated with any failure to carry out
periodic re screening of existingemployees.


Minimum group staff vetting standards maintained and regularly reviewed and

                       Major changes in market dynamics

Risk and potential impact to KPI

Such changes in dynamics could include new technologies, government
legislation, political or economic volatility or customer consolidation and
could, particularly if rapid or unpredictable, impact the group's revenues and
profitability. Security can be a high profile industry. There is a wide and
ever-changing variety of regulations applicable to the group's businesses
across the world, with a recent development being an increase of restriction
of foreign ownership in some countries. Failure, or an inability, to comply
with such regulations may adversely affect the group's revenues


The group performs strategic and business planning at group, region and
business unit level to ensure that specific local regulation requirements are
met. Monthly business unit trading reviews ensure that market changes are
identified quickly and actions taken to maintain performance and ensure that
business objectives continue to be achieved.

The group also monitors local markets and engages with governments around the
world to ensure adherence to regulatory requirements, to identify any
restrictions that could adversely impact the group's activities and take
appropriate actions.

                                 Cash losses

Risk and potential impact to KPI

The group is responsible for the cash held on behalf of its customers.
Increases in the value of cash lost through criminal attack may increase the
costs of the group's insurance. Were there to be failures in the control and
reconciliation processes surrounding customer cash, these could also adversely
affect the group's profitability.


The group has formal systems and policies in place documenting physical
security procedures and directives and adheres to a security framework to help
reduce the riskof cash losses.

The group also operates a captive insurance business unit to mitigate against
the financial risk of losses and attacks.

All transactions are subject to strict authorisation limits and regular
reconciliations of cash balances are performed for both cash in ATMs and cash
held on customers' behalf. In addition there is regular reporting of any cash
losses/attacks and audits of security are performed in branches.

The group has in place regional cash reconciliation managers to increase the
focus on cash reconciliations globally.


Risk and potential impact to KPI

If, due to adverse financial market conditions, insufficient or only very
costly financial funding were available, the group might not be in a position
to implement its strategy or invest in acquisitions or capital expenditure.
This includes possible bank insolvency loss of headroom particularly from
movement of exchange rates, unavailability of bank, bond or other sources of
financing and downgrading of the G4S credit rating. These could adversely
impact G4S revenue growth and profitability.


The group treasury department monitors and follows policies to mitigate
against liquidity, refinancing and currency/exchange rate risks. Refer to note
33 to the group accounts for more details.

The group's historical main source of funding has been a revolving bank
facility of £1.1bn which was renewed in March 2011 until 2016. The group has
sought to diversify its sources of finance by issuing a number of private
placement bonds in the US and public bonds in the UK and Europe.

These have spread out the refinancing requirements over the next ten years to
ensure the group has access to sufficient funds to meet its business and
strategic plans.


Risk and potential impact to KPI

Cyber attacks and incidents on G4S and client systems and services, especially
around critical national infrastructure could result in financial loss, breach
of contract, legal action and reputational damage.


The group employs IT specialists at all levels and has in place mandatory
minimum security controls (relating to 35 specific controls). In addition
penetration testing of networks and systems is performed regularly to ensure
that key systems are robust.

                       Onerous contractual obligations

Risk and potential impact to KPI

The group could commit to sales contracts specifying disadvantageous pricing
mechanisms, unachievable service levels, unacceptable operational feasibility
or delivery risk or excessive liability. This could impact its margins


Any new contracts entered into are subject to a defined approval process.
Standard contracts are used where practicable. Non-standard contracts which
expose the group to material risk are subject to risk assessment and depending
on the level of risk exposure are referred for regional or group legal
department review.

Statement of directors' responsibilities:

The following responsibility statement is repeated here solely for the purpose
of complying with Disclosure and Transparency Rule 6.3.5. This statement
relates to and is extracted from page 82 of the 2012 Annual Report and
Accounts. Responsibility is for the full 2012 Annual Report and Accounts not
the extracted information presented in this announcement and the preliminary
final results announcement.

"The directors are responsible for preparing the Annual Report and the group
and parent company financial statements in accordance with applicable law and

Company law requires the directors to prepare group and parent company
financial statements for each financial year. Under that law theyarerequired
to prepare the group financial statements in accordance with IFRSs as adopted
by the EU and applicable law and have elected to prepare the parent company
financial statements in accordance with UK Accounting Standards and applicable
law (UK Generally Accepted Accounting Practice).

Under company law the directors must not approve the financial statements
unless they are satisfied that they give a true and fair view of the state of
affairs of the group and parent company and of their profit or loss for that
period. In preparing each of the group and parent company financial
statements, the directors are required to:

  *select suitable accounting policies and then apply them consistently;

  *make judgements and estimates that are reasonable and prudent;

  *for the group financial statements, state whether they have been prepared
    in accordance with IFRSs as adopted by the EU;

  *for the parent company financial statements, state whether applicable UK
    Accounting Standards have been followed, subject to any material
    departures disclosed and explained in the parent company financial
    statements; and

  *prepare the financial statements on the going concern basis unless it is
    inappropriate to presume that the group and the parent company will
    continue in business.

The directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the parent company's transactions and disclose
with reasonable accuracy at any time the financial position of the parent
company and enable them to ensure that its financial statements comply with
the Companies Act 2006. They have general responsibility for taking such steps
as are reasonably open to them to safeguard the assets of the group and to
prevent and detect fraud and other irregularities.

Under applicable law and regulations, the directors are also responsible for
preparing a directors' report, directors' remuneration report and corporate
governance statement that comply with that law and those regulations.

The directors are responsible for the maintenance and integrity of the
corporate and financial information included on the company's website.
Legislation in the UK governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.

                     Directors' Responsibility Statement

Each of the directors, the names of whom are set out on pages 54 to 57 of this
annual report confirm that, to the best of his or her knowledge: the financial
statements in this annual report have been prepared in accordance with the
applicable accounting standards and give a true and fair view of the assets,
liabilities, financial position and profit of the company and the group taken
as a whole; and the directors' report, including the Business Review on pages
8 to 47, includes a fair review of the development and performance of the
business and the position of the company and the group taken as a whole,
together with a description of the principal risks and uncertainties they

The statement of directors' responsibilities was approved by a duly authorised
committee of the board of directors on 12 March 2013 and signed on its behalf
by Trevor Dighton, chief financial officer."

Peter David
Company Secretary

For further enquiries, please contact:
Helen Parris - Director of Investor Relations +44 (0) 1293 554423
Media enquiries:
Adam Mynott - Director of Media Relations     +44 (0) 1293 554400
David Allchurch                               +44 (0) 207 353 4200
Tulchan Group

G4S plc

G4S is the world's leading secure outsourcing group, specialising in
outsourcing of 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 125 countries and more than 620,000
employees. For more information on G4S, visit www.g4s.com.


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
information contained therein.

Source: G4S plc UK via Thomson Reuters ONE
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