G4S plc UK DK: Half-yearly report

                      G4S plc UK DK: Half-yearly report  13 August 2014 G4S 2014 Half year results                   Investing in sustainable, profitable growth  G4S Chief Executive Officer Ashley Almanza said, "The group made good progress and delivered a  satisfactory financial  performance in the  first six  months  winning new contracts with a total value of £1.2 billion and producing a  6.3%  increase in PBITA  and 13.2% increase  in earnings. There  remains much to  be  done to  capture the  full potential  of our  strategy and  to strengthen  the  group's performance."  Financial highlights:    oNew contract sales with total value of £1.2bn (+26%)        oOrganic revenue growth of 4.1%         oEmerging markets +12.1%              +Developed markets in line with the prior year                   oUnderlying PBITA^1 6.3% higher at £185m (2013: £174m)         oEmerging markets PBITA up 14.7%        oDeveloped markets PBITA up 6.7%              +Corporate costs of £28m an increase of £8m including £6m               non-cash pension and LTIP costs                   oUnderlying Earnings^1 of £86m (2013: £76m), up 13.2%, EPS up 3.7%        oTotalcashgeneratedby continuingoperationsof £212m(2013: £224m)     included cash flowof £185m(2013: £148m) from operating businesses and     one off corporate items of £27m (2013: £76m)        oNet debt position as at 30 June 2014 was £1,680m, reflecting the normal     seasonal effect of lower cash flows in the first half which is expected to     reverse in the second half of 2014 and the £109m electronic monitoring     settlement        oPortfolio management: proceeds of £89m in six months. A further £37m due     to be received in the second half of 2014 from the sale of business in     Sweden        oInterim dividend maintained at 3.42p/share (DKK 0.3198)             Underlying Results^1,2     Total Results^3            6 months ended 30 June  6 months ended 30 June             2014    2013   Change   2014    2013   Change Revenue    £3,371m £3,239m  4.1%   £3,371m £3,249m  3.8% PBITA       £185m   £174m   6.3%    £179m   £47m   280.9% Earnings^4  £86m    £76m   13.2%    £78m   £(196)m   - EPS^5       5.6p    5.4p    3.7%    5.0p   (14.0)p   -  ^1 At constant exchange rates. The  results at actual exchange rates are  set  out on pages 15  to 31. To clearly  present underlying performance,  specific  items have been excluded and disclosed separately - see page 3. ^2 2013  results are  presented at  constant exchange  rates and  have  been  restated  for  the  adoption  of  IFRS10  and  IFRS11.  2013  PBITA  has  been  re-presented for businesses subsequently classified as discontinued - see page 4 for details. ^3 At constant exchange rates,  including specific items. 2013 results  have  been restated for the adoption of IFRS10 and IFRS11 and have been re-presented for businesses  subsequently  classified as  discontinued  - see  page  4  for  details. ^4 Earnings is equal to profit/(loss)  for the period attributable to  equity  holders of the parent - see page 3. ^5 Earnings per share is based on  the average number of shares in issue  of  1,545m (2013:1,403m) - see pages 5 to 6.  Ashley Almanza, Group Chief Executive Officer, commented:  "The  group  made  good  progress  and  delivered  a  satisfactory   financial  performance in the first six months  winning new contracts with a total  value  of £1.2 billion and producing a 13.2% increase in earnings. There remains much to be done to capture the full potential of our strategy and to strengthen the group's performance.  Demand for our services was robust,  particularly in emerging markets. We  are  restructuring and rebuilding our businesses in UK & Ireland and in Europe.  We  have seen growth return to the North American market.  Profit before interest, tax and amortisation of £185^1 million was 6% higher than the same period in 2013, which reflects revenue growth and improved operational gearing, as we begin to capture benefits from restructuring and the implementation of our "Accelerated Best Practice" programmes.   With our increased focus on cash management, cash flowfrom operating businesseswas £185 million,a 25% improvement on the same period last year. Totalcashgeneratedby continuingoperations, including one off corporate items, was£212 million(2013: £224 million).  Following the  review of  the  group's strategy  and  business last  year,  we  identified a number  of strategic  priorities and in  each area  we have  made  progress in moving from planning into execution:  Portfolio and  performance  management: We  have  divested six  businesses  at  attractive exit multiples over the past  year, for aggregate proceeds of  £160  million, including  our business  in Sweden  which we  sold in  July 2014.  In  addition, we  have taken  the decision  to discontinue  a further  15  smaller  businesses and have an  ongoing sale process for  our US Government  Solutions  business. Portfolio management remainsimportant for strategic focus,  capital  discipline and performance management.  Organic growth: We won  new work with  an annual contract  value of over  £600  million, and total contract  value of £1.2 billion  whilst, at the same  time,  replenishing our pipeline which now stands at an annual value of £4.9 billion.  We continue to see  further opportunities to sell  additional services in  our  key markets and, in line with our previously announced plans, we have invested an annualised  £15  million  to  strengthen  sales  and  business  development  capability. We  are progressively  embedding a  consistent approach  to  sales  operations and sales performance measurement.  Accelerated Best Practice and cost  leadership: Our Accelerated Best  Practice  and cost leadership programme  gathered momentum with  the appointment of  key  management and subject matter  experts to focus  on direct labour  efficiency,  organisational efficiency, route planning and telematics, IT  standardisation,  procurement  and  shared  services.  Our  major  restructuring  programmes  to  strengthen  the  competitiveness  and  profitability   of  a  number  of   key  businesses, principally in the UK,  Ireland and Europe, are being  implemented  in line  with  the  detailed  plans which  were  developed  last  year.  These  programmes and cost initiatives are beginning to deliver improved  operational  leverage.  People and  values: We  made  good progress  with  the implementation  of  our  corporate transformation  programme. We  have  enhanced our  risk  management  controls and practices,  strengthened contract management  and are adopting  a  more systematic approach to measuring customer service. A group-wide internal communications programme is also underway  to reinforce our group values  and,  in line with the Safety First value, there has been concerted focus on  health  and safety policy and practice.  Outlook We have  achieved a  satisfactory financial  performance and  are making  good  strategic progress. Demand for our services continues to be strong in emerging markets, we are  restructuring and rebuilding  our UK &  Ireland and  European  businesses and we have seen good growth return to our North American markets. The group is  making encouraging progress,  there remains much  to be done  to  capture the  full potential  of our  strategy and  to strengthen  the  group's  performance.    oTo clearly present underlying performance, specific items have been     excluded and disclosed separately - see page 3.  Group income statement for the six months ended 30 June 2014                                      Specific items                              Acquisition                                  Re                                    items                              stated                       Under          and                              underl      Re                       lying discontinued      Res                       ying  stated                     results   operations tructure Impairment Total results^1 Total^1                        June                                   June      June    June                        2014                                   2014      2013    2013                          £m           £m       £m         £m    £m        £m      £m Revenue               3,371            -        -          - 3,371     3,239   3,249 PBITA before specific items and profit from joint ventures                181            -        -          -   181       171     172 Share of post-tax profit from joint ventures            4            -        -          -     4         3       3 PBITA before restructuring and specific items      185            -        -          -   185       174     175 Impairment and other items               -            -        -          2     2         -   (124) Restructuring costs                     -            -      (8)          -   (8)         -     (4) PBITA                   185            -      (8)          2   179       174      47 Amortisation of intangible assets^2       -         (33)        -          -  (33)         -    (35) Goodwill impairment                -            -        -          -     -         -    (41) Acquisition-related expenses                  -            -        -          -     -         -     (2) Profit/(loss) before interest and taxation (PBIT)                  185         (33)      (8)          2   146       174    (31) Finance income            5            -        -          -     5         6       6 Finance costs          (66)            -        -          -  (66)      (69)    (69) Profit/(loss) before taxation (PBT)          124         (33)      (8)          2    85       111    (94) Taxation               (31)            8        -          -  (23)      (28)    (14) Profit/(loss) after taxation           93         (25)      (8)          2    62        83   (108) Discontinued operations: Trading profit/(loss)             -          (7)        -          -   (7)         -     (8) Impairment                -            -        -          -     -         -    (74) Profit/(loss) on disposal                  -           30        -          -    30         -     (2) Profit/(loss) from discontinued operations                -           23        -          -    23         -    (84) Profit/(loss) for the period           93          (2)      (8)          2    85        83   (192) Attributable to: Equity holders of the parent            86          (2)      (8)          2    78        76   (196) Non-controlling interests                 7            -        -          -     7         7       4 Profit/(loss) for the period               93          (2)      (8)          2    85        83   (192) Earnings per share attributable to ordinary equity shareholders of the parent from continuing and discontinued operations Basic and diluted      5.6p                                   5.0p      5.4p (14.0)p  ^1 2013 at constant exchange rates and restated for the adoption of IFRS 10 and IFRS 11 and re-presented for businesses subsequently classified as discontinued - see page 4. ^2 Amortisation of acquisition-related intangible assets.  Prior year reconciliation for discontinued and other items  Prior year results have been  restated for operations subsequently  classified  as discontinued and are reconciled with previously reported results below. As part of the December 2013 year  end process, some businesses were  reallocated  between regions to  better align  the reporting  with how  the businesses  are  managed.                                                         June 2013 December 2013 Adjustments to  prior  year reported  numbers  for  discontinued businesses, adoption of IFRS10/11 and Revenue PBITA Revenue PBITA exchange rate movements: Underlying results as reported in 2013                                                 3,648   201   7,428   442 Discontinued businesses Asia Middle East                                       (6)     -    (11)     - Latin America^1                                       (16)   (1)    (25)   (2) Europe^2                                              (64)   (2)   (122)   (2) North America^3                                         60     3       -     - Total                                                 (26)     -   (158)   (4) IFRS10 & IFRS11 adjustments^4 Africa                                                 (2)     -     (4)     - Asia Middle East                                      (87)  (10)   (179)  (22) Europe                                                   -     -     (1)     - UK & Ireland                                          (17)   (1)    (38)   (2) Corporate costs                                          -     1       -     3 Total                                                (106)  (10)   (222)  (21) Underlying restated 2013 results at actual rates                                         3,516   191   7,048   417 Exchange differences Africa                                                (34)   (3)    (61)   (5) Asia Middle East                                      (83)   (5)   (128)  (10) Latin America                                         (64)   (4)   (101)   (6) Europe                                                (35)   (2)    (83)   (6) North America                                         (59)   (3)   (108)   (4) UK & Ireland                                           (2)     -     (4)   (1) Total                                                (277)  (17)   (485)  (32) Underlying 2013 results at current rates                                                3,239   174   6,563   385  Prior year results have also been restated to reflect the adoption of the  new  consolidation standard, IFRS 10 Consolidated Financial Statements and the  new  joint venture standard  IFRS 11  Joint Arrangements. Further  details of  the  restatements are given in note 16.  The impact of the adoption of IFRS  10 and IFRS 11 reflects the actual  impact  of moving entities from full or proportional consolidation to equity accounted for joint ventures, and differs from the estimates provided in the 2013 Annual Report and Accounts.  The effect  of the  adoption of IFRS  10 and  11 on  the  group's results at constant exchange rates for the year ended 31 December 2013 has been to reduce PBITA by £21  million interest and tax costs by £3  million  (2013 Annual Report and Accounts estimate: £32 million PBITA and £7 million of interest and tax costs),  reducing non-controlling interests  by an equal  and  opposite  amount.  Earnings   remained  unchanged.   Profit  attributable   to  non-controlling interests was  £7 million (2013:  £7 million). The  difference  between estimated and actual  impact is mainly attributable  to the review  in  detail of certain joint venture agreements. ^1 Includes revenue and PBITA relating to the group's Colombian data solutions business which was sold in August 2013. ^2 Includes G4S Sweden which has been sold subject to the customary regulatory approvals - as set out on page 6. ^3 Following  a strategic  review,  our US  Regulated Secure  Solutions  (RSS)  business is no longer for sale. ^4 For full details of the impact of IFRS10 and IFRS11 see note 16.  GROUP COMMENTARY - CONTINUING OPERATIONS, 6 MONTHS ENDED 30 JUNE 2014  The commentary below in respect of the income statement compares 2014 to  2013  underlying results at constant  exchange rates. The results  of the group  at  actual exchange rates are set out on pages 15 to 31.  Revenue Revenue was £3,371 million, an increase of 4.1% on the same period in 2013.  Emerging markets grew by 12% year on  year and, with revenues of £1.2  billion  in the first half of the year, now represent 36% of group revenue (2013: 33%). Developed markets revenues  were in line  with the prior  year with growth  in  North America  of 4.2%  offset  by a  small decline  in  Europe of  1.2%.  As  expected, UK & Ireland revenues declined by 2.0% as the Electronic  Monitoring  contract ended in Q1 2014.  PBITA Group PBITA was £185 million  and 6% higher compared  to the same period  last  year (2013: £174 million). PBITA reported for the first half of 2013 has been re-presented to reflect discontinued businesses and restated for the impact of adopting the new consolidation  and joint arrangement  standards (IFRS 10  and  IFRS 11). Full details are set out  on page 4. Corporate costs were higher  at  £28 million (2013:  £20 million) largely  reflecting an increase  in non  cash  items of £6 million principally related to pensions and LTIPs, as well as  the  investment in finance, risk management, procurement and IT capability.  Specific Items The specific  items credit  of £2  million relates  mainly to  the  successful  resolution of a legal claim in Europe.  A restructuring charge of £8  million was incurred in  the first half of  2014  (2013: £4 million) relating mainly to UK and Europe.  In 2013 the review of the group's assets and liabilities resulted in a one-off charge of £124 million at PBITA level and £41 million in relation to  goodwill  impairment.  Net finance costs and tax Net interest payable on  net debt was £51  million (2013: £53 million),  lower  than the same period last  year due to the decrease  in average net debt.  The  pension interest  charge was  £10 million  (2013: £10  million), resulting  in  total net finance costs of £61 million (2013: £63 million).  The effective tax rate for the half year on underlying earnings was 25% (2013: 25% when restated for IFRS 10 and IFRS 11, see page 7).  Discontinued operations The total profit for  the period of  £23 million (2013:  loss of £84  million)  relating to discontinued operations included a trading loss of £7 million  and  profit on disposal of £30 million. The profit on disposal relates to the sale of the  group's cash  solutions business  in Canada  for £60  million and  its  business in Norway for £29 million.  Profit for the period  The group  made  a total  underlying  profit attributable  to  equity  holders  ('earnings') of £86 million (2013: £76  million) an increase of 13.2% for  the  six months to 30 June 2014.  The group made a total profit of £85 million (2013: loss of £192 million)  for  the  six  months  to  30  June  2014  after  specific  items,  interest,  tax,  amortisation and the results of discontinued operations.  Underlying Earnings per share Underlying earnings per  share^1 includes  pension interest  and increased  to  5.6p (2013: 5.4p). Total earnings per  share^2 was 5.0p (2013: loss per  share  of 14.0p). These are based on a weighted average number of shares in issue  of  1,545 million  (2013:  1,403  million).  A reconciliation  of  the  total  and  underlying EPS is provided below.                           Underlying^1 earnings per                                    share            Total^2 earnings per share                                   2013 at  2013 at           2013 at   2013 at                                  constant   actual          constant    actual                                  exchange exchange          exchange  exchange                            2014     rates    rates    2014     rates     rates                              £m        £m       £m      £m        £m        £m Profit/(loss) for the year                         93        83       97      85     (192)     (202) Non-controlling interests                   (7)       (7)      (7)     (7)       (4)       (4) Adjusted profit attributable to shareholders (earnings)      86        76       90      78     (196)     (206) Average number of shares (m) note 9a               1,545     1,403    1,403   1,545     1,403     1,403 Earnings per share         5.6p      5.4p     6.4p    5.0p   (14.0)p   (14.7)p  ^1 Underlying earnings exclude specific items - see page 3. ^2 Total earnings include specific items - see page 3.  Cash flow Cash generated  from  continuing  operations  was  £212  million  (2013:  £224  million). Operating  cash  flow from  operating  businesses was  £185  million  (2013: £148  million)  before  corporate  items:  2013  included  £76  million  relating to  the 2012  Olympics; and  2014 included  the £27  million  receipt  following the Electronic  Monitoring settlement  with the  UK Government.  The  group invested £54  million in  capex in the  period (2013:  £79 million)  and  received proceeds of £89 million (comprising £79 million cash proceeds and £10 million relating to  the settlement  of outstanding finance  leases) from  the  disposal of its  business in Norway  and the Canada  cash solutions  business.  These contributed to a net cash flow after investing in the business of  £204  million (2013: £110 million).   Net interest paid was  £66 million (2013: £70  million) and group  shareholder  dividend payments were £85 million (2013: £78 million). The net cash  outflow  of £144 million (2013: £123 million) also included the payment of £109 million to the UK Government in relation to the Electronic Monitoring contract.  Net debt The net debt position as at 30 June 2014 was £1,680 million (31 December 2013: £1,552 million).  The  increase of  £128  million reflects  net  cash  outflow  including the  £109  million  Electronic  Monitoring  settlement  and  foreign  exchange movements. The group's  net debt to EBITDA  ratio is 3.1 (2013:  2.8)  (see page 31 for  details of the calculation)  reflecting the normal  seasonal  effect of lower  cash flows in  the first  half which, in  line with  previous  years, is expected to reverse in the second half of 2014.  Pensions The group's  deficit on  funded  defined retirement  benefit schemes,  on  the  valuation basis  specified in  IAS19(R) Employee  Benefits, was  £369  million  after tax (31  December 2013:  £379 million).  The group  has made  additional  pension deficit funding contributions of £21 million (2013: £18 million).  Disposals The group disposed of its Canadian cash solutions business for proceeds of £60 million and  its Norwegian  business  for proceeds  of  £29 million,  both  in  January 2014. Net cash proceeds after settlement of finance lease  obligations  was £79 million. The  group has agreed  to sell its  Swedish business for  £37  million and has an ongoing divestment  process underway for its US  Government  Solutions business.  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 36 to 41 of the company's Annual Report and Accounts for the financial year ended 31 December 2013, a copy of which is available on the group's website at www.g4s.com. These risks and uncertainties include, but are not limited to, culture and values, health & safety,  people,  brand/reputation, major contracts and information security. The business risks and uncertainties are expected  to remain materially the  same as outlined  in  the 2013 Annual  Report and Accounts  during the remaining  six months of  the  financial year. Credit facilities The group's credit rating was confirmed by Standard & Poor's as BBB-  (Stable)  in April 2014. As  of 30 June  2014 the company has  access to unutilised  and  committed facilities  of  £955 million.  The  group has  sufficient  borrowing  capacity to finance its current and medium term investment plans.  The group has no material debt maturities  until March 2016 and has a  diverse  range of finance providers. Borrowings are principally in pounds sterling,  US  dollars and euros reflecting the geographies of significant operational assets and profits.  The group's main  sources of finance  and their applicable  rates are set  out  below:  i.A £1.1 billion multicurrency revolving credit facility provided by a    consortium of lending banks at a drawn margin of 0.95% over LIBOR and    maturing on 10 March 2016. As at 30 June 2014 the drawings were £15    million, US$160 million and €44 million. ii.A US$450 million private placement of notes issued on 1 March 2007, which     mature at various dates between 2017 and 2022, and bear interest at rates     between 5.86% and 6.06%. iii.US$514 million and £69 million private placement notes issued on 15 July      2008, which mature at various dates between 2015 and 2020 and bear      interest at rates between 6.43% and 7.56%. iv.A £350 million Public Note issued on 13 May 2009 bearing an interest rate     of 7.75%, maturing 13 May 2019. v.A €600 million Public Note issued on 2 May 2012 bearing an interest rate of    2.875%, maturing 2 May 2017. vi.A €500 million Public Note issued on 6 December 2013 bearing an interest     rate of 2.625%, maturing 6 December 2018.  New consolidation standards for 2014 (IFRS10, 11 and 12) The  group  has   adopted  the  three   new  consolidation  standards   IFRS10  Consolidated  Financial  Statements,  IFRS11  Joint  Arrangements  and  IFRS12  Disclosure of Interest  in Other  Entities for the  six months  ended 31  June  2014. For more details  on the impact of  adopting these standards please  see  note 16.  The adoption of these standards required  a restatement of prior year  results  which reduced revenue for the six months  to 30 June 2013 by £106 million  and  reduced PBITA by £10 million (both  at constant exchange rates). The  entities  affected are largely in the Middle East with a lower or zero effective rate of tax, and  have the  effect of  increasing the  group's effective  tax rate  on  underlying PBT  to 25%.  The corresponding  benefit arises  in the  share  of  profits from joint ventures; earnings per share is unchanged.  Significant exchange rates applicable to the group In the  first half  of 2014,  sterling has  strengthened against  many of  the  group's key currencies. As outlined on  page 4, at June 2014 average  exchange  rates, revenues for the six months to  June 2013 were £277 million (8%)  lower  at £3,239 million (2013: £3,516 million at June 2013 average rates) and  PBITA  was £17 million (9%) lower at £174 million (£191 million).  For the full  year 2013, revenues  were £485 million  lower at £6,563  million  (2013: £7,048 million at  December 2013 average rates)  and PBITA £32  million  lower at £385 million (£417 million). The group derives a significant  portion  of its revenue and  profits in the following  currencies. Closing and  average  rates for these currencies are shown below:                                                              6 months to                            As at 6 months to 30 June 2014     June 2013                     30 June 2014            average rates average rates £/US$                      1.710                    1.673         1.544 £/€                        1.249                    1.219         1.177 £/South Africa Rand       18.191                   17.866        14.228 £/India Rupee            102.839                  101.668        84.754 £/Israel Shekel            5.863                    5.821         5.670 £/Brazil Real              3.769                    3.839         3.150 £/Australia $              1.812                    1.835         1.525  Dividend The board has declared an interim dividend of 3.42p per share (DKK 0.3198). 13 August 2014  UNDERLYING REGIONAL AND GROUP PERFORMANCE  The analysis of the group's business performance reflects internal  management  reporting lines which are based on geographic regions. The group's  underlying  segmental results are  presented below excluding  specific items. Prior  year  results have  been  restated  for  the adoption  of  IFRS10  and  IFRS11,  for  businesses classified as  discontinued operations during  the period, and  for  the transfer of business between regions to reflect the way the businesses are managed across the group.  At constant         Revenue                PBITA            Margins    Organic exchange                                                               Growth rates         2014^1 2013^2        2014^1 2013^2                   £m     £m Change     £m     £m  Change 2014^1 2013^2 Africa           239    212  12.7%     22     18   22.2%   9.2%   8.5%     12% Asia Middle East             651    584  11.5%     48     39   23.1%   7.4%   6.7%     12% Latin America    325    288  12.8%     16     18 (11.1%)   4.9%   6.3%     13% Emerging Markets        1,215  1,084  12.1%     86     75   14.7%   7.1%   6.9%     12% Europe           715    724 (1.2%)     40     41  (2.4%)   5.6%   5.7%    (1%) North America    651    625   4.2%     33     26   26.9%   5.1%   4.2%      4% UK & Ireland     790    806 (2.0%)     54     52    3.8%   6.8%   6.5%    (2%) Developed Markets        2,156  2,155   0.0%    127    119    6.7%   5.9%   5.5%      0% Total Group before corporate costs          3,371  3,239   4.1%    213    194    9.8%   6.3%   6.0%      4% Corporate costs                                (28)   (20) Total Group    3,371  3,239   4.1%    185    174    6.3%   5.5%   5.4%      4%  ^1 To clearly present underlying performance, specific items have been excluded and disclosed separately - refer to page 3 for a reconciliation to total results. ^2 2013 results are presented at constant exchange rates and have been restated for the adoption of IFRS 10 and IFRS 11, for businesses classified as discontinued operations and exclude the results of the Colombia data solutions business sold in August 2013.  UNDERLYING OPERATING PERFORMANCE BY REGION  AFRICA  At constant exchange         Revenue               PBITA            Margins rates                  2014^1 2013^2        2014^1 2013^2                            £m     £m Change     £m     £m Change 2014^1 2013^2                           239    212  12.7%     22     18  22.2%   9.2%   8.5%  In Africa revenues grew 12.7% and  PBITA increased 22.2%, benefiting from  the  growth in revenue as well as overhead efficiency programmes.  New contracts  won  across the  region  include  work for  customers  such  as  financial institutions  and utilities  in  Kenya, distribution  businesses  in  South Africa, an embassy in Tanzania, a hydro-electric plant in Mozambique and mine clearance work  in Southern  Sudan. The Mangaung  Correctional Centre  in  South Africa is also now back under G4S management.  The acquisition  of Deposita  in  January 2013  and  the addition  of  CASH360  devices and ATM engineering services to  our cash solutions business in  South  Africa has  enabled us  to sell  comprehensive end-to-end  solutions in  South  Africa and other African markets.  The bidding pipeline in  Africa has grown strongly  in the second quarter  for  all service lines and includes sectors such as financial services,  extractive  industries, retail and construction. We  have recruited additional talent  in  areas such as sales and marketing and labour scheduling to ensure we have  the  capacity to address the market opportunities and to operate efficiently. ASIA MIDDLE EAST  At constant exchange         Revenue               PBITA            Margins rates                  2014^1 2013^2        2014^1 2013^2                            £m     £m Change     £m     £m Change 2014^1 2013^2                           651    584  11.5%     48     39  23.1%   7.4%   6.7%  Revenue in  Asia  Middle  East  rose  by  11.5%  and  PBITA  increased  23.1%,  reflecting  a  greater  contribution  from  our  care  and  justice   services  businesses in  Australia  and New  Zealand,  new contracts  in  Indonesia  and  Thailand and a strong profit performance across the Middle East.  The Manus Island immigration processing  centre contract ended in March  2014.  The group secured contract wins in  demining and risk management for a  number  of international oil and  gas companies in Iraq.  The region has invested  in  technology sales and delivery capability in the Middle East and has now won  a  number of electronic security systems contracts in the UAE and Qatar.  We have made significant investment in sales and operational capability in the region. In addition, organisational structures are being reviewed with the aim of streamlining operations and regional overhead.  LATIN AMERICA  At constant exchange        Revenue                PBITA            Margins rates                 2014^1 2013^2        2014^1 2013^2                           £m     £m Change     £m     £m Change  2014^1 2013^2                        325    288   12.8%    16     18   (11.1%)  4.9%   6.3%  Revenue  and  organic  growth  in  Latin  America  was  12.8%  with  a  number  ofcontract wins in  the ports, car  manufacturing, transportation,  financial  services, telecommunications and extractives sectors.   PBITA was 11.1% lower due mainly to  the legislated increase in pay in  Brazil  which we expect to be partially recovered in the second half of the year.  Recent  contract  wins  include  the  first  pan-Latin  America  contract  and  contracts in the manufacturing,  financial institution, transportation,  ports  and industrials  sectors.  A  North  America contract  with  a  major  on-line  retailer was also expanded into Latin America.  Our sales pipeline for the Latin America region is growing well with a  number  of new  multi-year  manned security  and  FM opportunities  for  multinational  customers in Brazil and Colombia.  EUROPE  At constant exchange         Revenue               PBITA            Margins rates                  2014^1 2013^2        2014^1 2013^2                            £m     £m Change     £m     £m Change 2014^1 2013^2                           715    724 (1.2%)     40     41 (2.4%)   5.6%   5.7%  In Europe revenue declined 1.2% and PBITA was 2.4% lower than the same  period  last year. Positive  sales momentum  developed in  the first  six months  this  year, with new contract wins and solid customer retention which is helping  to  offset the Dutch justice services contract loss. In January 2014, we won a €50 million per annum, five  year contract to provide  cash solutions services  in  the Netherlands  Revenues for the security systems business,  which accounts for around 20%  of  European secure solutions revenues, remained in line with 2013. The region has an increased focus on security and cash solutions technology.  We made further progress with portfolio management in the region, disposing of three businesses including the sale of our business in Sweden for £37 million. Our European  markets show  some sign  of stabilising  and we  have a  diverse  contract pipeline with  sectors such  as ports,  aviation, transportation  and  healthcare  being  particularly  strong.  Investment  in  sales  and  business  development capacity is being made to strengthen this pipeline.  NORTH AMERICA  At constant exchange         Revenue               PBITA            Margins rates                  2014^1 2013^2        2014^1 2013^2                            £m     £m Change     £m     £m Change 2014^1 2013^2                           651    625   4.2%     33     26  26.9%   5.1%   4.2%  Revenue grew  by 4.2%  in North  America reflecting  a strong  performance  in  commercial security, compliance and investigations and justice services.  We retained contracts with major financial institutions and grew our  business  in the  wholesale  retail  sector.  We also  won  a  new  security  technology  integration project and our Compliance and Investigation business won a global safety hotline  contract  for a  major  corporation. There  were  also  major  contract wins in the industrial, healthcare and biotech sectors.  PBITA for the region was 26.9% higher, reflecting higher revenue and  improved  direct labour efficiency  resulting in a  reduction in non-billable  overtime,  and overhead reductions.  The implementation of the Affordable Care Act  in the US has been delayed  for  large businesses. It is not expected to have a material impact on the  group's  business in  the US  as the  majority  of its  employee healthcare  plans  are  already broadly compliant.  Good progress was made in the region on rationalising the business portfolio. The sale of the cash solutions business in Canada completed for £60 million in January 2014  and  the  divestment  process of  the  US  Government  Solutions  business continues.  Overall, the  North American  business  has a  strong contract  pipeline  with  opportunities  across  diverse  sectors   including  commerce,  industry   and  government.  UK & IRELAND  At constant exchange         Revenue               PBITA            Margins rates                  2014^1 2013^2        2014^1 2013^2                            £m     £m Change     £m     £m Change 2014^1 2013^2                           790    806 (2.0%)     54     52   3.8%   6.8%   6.5%  Revenue declined 2% and PBITA was 3.8% higher with improved performance in the UK cash solutions  business being partially  offset by the  ending of the  MoJ  Electronic Monitoring  contract.  Significant  restructuring  programmes  are  being implemented in the UK cash solutions, Ireland cash solutions and  secure  solutions businesses covering branch networks (Ireland and UK cash solutions), organisational design and operational labour efficiency.  UK contracts won during  2014 include selection by  the Department for Work  &  Pensions  (DWP)  to  manage  community  work  placements  for  the  long  term  unemployed, renewal of the Rainsbrook  Secure Training Centre, and a  regional  secure solutions contract with a global IT company.  In April, the UK Government gave a  positive assessment of the steps taken  to  rebuild its  confidence in  the  group's services.  The UK  corporate  renewal  programme forms  part  of  a  wider programme  of  change  to  strengthen  the  governance and performance  of the  group as  a whole  and, while  significant  progress has been made,  much remains to  be done. The  priorities now are  to  deliver outstanding service on existing contracts and to grow the business  by  competing for new  Government services in  areas where the  region has  proven  expertise and capability.  The UK & Ireland bidding pipeline is broad-based and has grown strongly in  FM  and outsourcing.  ^1 At constant exchange rates. To present clearly underlying performance, specific items have been excluded and disclosed separately - see page 3. ^2 2013 results are presented at constant exchange rates and have been restated for the adoption of IFRS10 and IFRS11, for businesses classified in discontinued operations and exclude the results of the Colombia data solutions business, which was sold in August 2013.  UNDERLYING SERVICE LINE OPERATING REVIEW  Secure solutions  At constant       Emerging markets    Developed markets          Total exchange rates           £m                   £m                   £m                 2014^1 2013^2 Change 2014^1 2013^2 Change 2014^1 2013^2 Change Revenue            984    860  14.4%  1,841  1,827   0.8%  2,825  2,687   5.1% Organic growth     14%    13%            1%     2%            5%     5% PBITA               64     51  25.5%    102     96   6.3%    166    147  12.9% Margin %          6.5%   5.9%   0.6%   5.5%   5.3%   0.2%   5.9%   5.5%   0.4%  The secure  solutions businesses  achieved 5.1%  growth in  revenue and  12.9%  PBITA growth.  Emerging markets revenue grew 14%, and PBITA grew by 25.5% driven by  contract  mix, price increases  and cost efficiencies.  Developed markets revenue  grew  0.8% with PBITA growth of 6.3%. There was good growth in North America offset by a decline in the UK, resulting in part from exiting unprofitable contracts.  Cash solutions  At constant       Emerging markets    Developed markets          Total exchange rates           £m                   £m                   £m                 2014^1 2013^2 Change 2014^1 2013^2 Change 2014^1 2013^2 Change Revenue            231    224   3.1%    315    328 (4.0%)    546    552 (1.1%) Organic growth      3%    13%           -4%    -2%           -1%     4% PBITA               22     24 (8.3%)     25     23   8.7%     47     47   0.0% Margin %          9.5%  10.7%  -1.2%   7.9%   7.0%   0.9%   8.6%   8.5%   0.1%  Cash solutions revenue declined by 1.1% and  PBITA was in line with the  prior  year.  Emerging markets  revenue  growth was  3.1%.  Emerging markets  PBITA  was  £2  million lower,  due mainly  to  lower gold  bullion  shipments in  the  secure  logistics business following a sharp fall  in volumes of bullion into  India.  Developed  markets  revenue  declined  4%  principally  in  the  Ireland  cash  solutions business. PBITA  in developed  markets grew  8.7% reflecting  strong  performances in the UK and Europe.  ^1 At constant exchange rates. To present clearly underlying performance, specific items have been excluded and disclosed separately - see page 3. ^2 2013 results are presented at constant exchange rates and have been restated for the adoption of IFRS10 and IFRS11, for businesses classified in discontinued operations and exclude the results of the Colombia data solutions business, which was sold in August 2013.  G4S plc Half-yearly results announcement  For the six months ended 30 June 2014  Directors' responsibility statement in respect of the half-yearly results announcement  We confirm that to the best of our knowledge:    othis condensed set of financial statements has been prepared in accordance     with International Accounting Standard (IAS) 34 Interim Financial     Reporting as adopted by the EU;   othe 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:  Himanshu Raja Group Chief Financial Officer  G4S plc Half-yearly results announcement  For the six months ended 30 June 2014  Independent review report to G4S plc  Introduction We have been engaged by the company  to review the condensed set of  financial  statements in the  half-yearly financial report  for the six  months ended  30  June  2014  which  comprises  the  Condensed  Consolidated  Income  Statement,  Condensed  Consolidated   Statement   of   Comprehensive   Income,   Condensed  Consolidated Statement of Changes in Equity, Condensed Consolidated  Statement  of Financial Position, Condensed Consolidated  Statement of Cash Flow and  the  related explanatory notes. We have read the other information contained in the half-yearly financial report and considered  whether it contains any  apparent  misstatements  or  material  inconsistencies  with  the  information  in   the  condensed set  of financial  statements. This  report is  made solely  to  the  company in accordance with the terms  of our engagement to assist the  company  in meeting the  requirements of  the Disclosure and  Transparency Rules  ("the  DTR") of the UK's Financial Conduct  Authority ("the UK FCA"). Our review  has  been undertaken so that  we might state  to the company  those matters we  are  required to  state to  it in  this report  and for  no other  purpose. To  the  fullest extent permitted by law, we do not accept or assume responsibility  to  anyone other than the company for our review work, for this report, or for the conclusions we have reached.  Directors' responsibilities The half-yearly  financial  report is  the  responsibility of,  and  has  been  approved by, the directors.  The directors are  responsible for preparing  the  half-yearly financial report  in accordance  with the  DTR of  the UK  FCA.The  condensed set of financial statements  included in this half-yearly  financial  report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.  Our responsibility Our responsibility is to express to the company a conclusion on the  condensed  set of financial statements in the  half-yearly financial report based on  our  review.  Scope of review We conducted our review  in accordance with  International Standard on  Review  Engagements (UK  and Ireland)  2410 Review  of Interim  Financial  Information  Performed by the  Independent Auditor  of the  Entity issued  by the  Auditing  Practices Board for use in the  UK. A review of interim financial  information  consists of making enquiries, primarily  of persons responsible for  financial  and accounting matters, and applying analytical and other review procedures. A review is substantially less  in scope than an  audit conducted in  accordance  with International Standards  on Auditing  (UK and  Ireland) and  consequently  does not enable  us to  obtain assurance  that we  would become  aware of  all  significant matters that might be identified  in an audit. Accordingly, we  do  not express an audit opinion.  Whilst the company has previously  produced a half-yearly report containing  a  condensed set of  financial statements,  those financial  statements have  not  previously  been  subject  to  a  review  by  an  independent  auditor.  As  a  consequence, the review procedures  set out above have  not been performed  in  respect of the comparative period for the six months ended 30 June 2013.  Conclusion Based on our  review, nothing  has come  to our  attention that  causes us  to  believe that  the condensed  set of  financial statements  in the  half-yearly  financial report for the six months ended 30 June 2014 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU and the  DTR  of the UK FCA.  John Morris for and on behalf of KPMG Audit Plc Chartered Accountants 15 Canada Square, London. E14 5GL 12 August 2014  G4S plc Half-yearly results announcement  For the six months ended 30 June 2014  Condensed consolidated income statement Unaudited For the six months ended 30 June 2014                                                                                                                        Six      Six                                                                                                                    months   months     Year                                                                                                                     ended    ended    ended                                                                                                                  30.06.14 30.06.13 31.12.13                                                                                                                           Restated Restated                                                                                                            Notes       £m       £m       £m Continuing operations Revenue                                                                                                        2    3,371    3,527    7,063 Operating profit before interest, tax, amortisation, specific items, restructuringand profit from joint ventures                                                                                                   181      188      410 Share of post-tax profit from joint ventures                                                                            4        4        8 Operating profit before interest, tax, amortisation, specific items and restructuring 2      185      192      418 Specific items                                                                                                          2    (131)    (314) Restructuring costs                                                                                                   (8)      (4)     (66) Operating profit before interest, tax and amortisation (PBITA)                                                        179       57       38 Amortisation of acquisition-related intangible assets                                                                (33)     (37)     (72) Goodwill impairment                                                                                                     -     (48)     (46) Acquisition-related expenses                                                                                            -      (2)      (4) Profit on disposal of assets and subsidiaries                                                                           -        -       24 Operating profit/(loss) before interest and taxation (PBIT)                                                 2, 3      146     (30)     (60) Finance income                                                                                                 6        5        7       13 Finance costs                                                                                                  7     (66)     (71)    (139) Operating profit/(loss) before taxation (PBT)                                                                          85     (94)    (186) Taxation                                                                                                       8     (23)     (17)     (53) Profit/(loss) from continuing operations after taxation                                                                62    (111)    (239) Profit/(loss) from discontinued operations                                                                             23     (91)    (118) Profit/(loss) for the period                                                                                           85    (202)    (357) Attributable to: Equity holders of the parent                                                                                   9       78    (206)    (362) Non-controlling interests                                                                                               7        4        5 Profit/(loss) for the period                                                                                           85    (202)    (357) Earnings per share attributable to equity shareholders of the parent Basic and diluted - continuing operations                                                                      9     3.5p   (8.2)p  (16.8)p Basic and diluted - continuing and discontinued operations                                                           5.0p  (14.7)p  (24.9)p Dividends declared in respect of the period Interim dividend                                                                                              10    3.42p    3.42p    3.42p Final dividend                                                                                                10        -        -    5.54p Total dividend                                                                                                10        -        -    8.96p  Condensed consolidated statement of comprehensive income Unaudited For the six months ended 30 June 2014                                                                            Year                                     Six months ended Six months ended    ended                                             30.06.14         30.06.13 31.12.13                                                              Restated Restated                                                   £m               £m       £m Profit/(loss) for the period                      85            (202)    (357) Other comprehensive income Items that will never be reclassified to profit or loss: Actuarial (losses)/gains on defined retirement benefit schemes                       (1)               19     (60) Tax on items that will never be reclassified to profit or loss                     -              (4)      (1)                                                  (1)               15     (61) Items that are or may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations                           (24)               28    (109) Cash flow and net investment hedging financial instruments                   (16)               44       17 Tax on items that are or may be reclassified subsequently to profit or loss                                          (1)                -      (4)                                                 (41)               72     (96) Other comprehensive income, net of tax                                             (42)               87    (157) Total comprehensive income for the period                                            43            (115)    (514) Attributable to: Equity holders of the parent                      37            (123)    (518) Non-controlling interests                          6                8        4 Total comprehensive income for the period                                            43            (115)    (514)  Condensed consolidated statement of changes in equity Unaudited For the six months ended 30 June 2014                          Attributable to equity holders of the                                         parent                                                      Share   Share Retained    Other           NCI  Total                         capital premium earnings reserves Total reserve Equity                            2014    2014     2014     2014  2014    2014   2014                              £m      £m       £m       £m    £m      £m     £m At 1 January 2014 - restated                    388     258    (415)      636   867      17    884 Total comprehensive income                        -       -       78     (41)    37       6     43 Dividends declared            -       -     (85)        -  (85)     (5)   (90) Equity settled transactions                  -       -        1        -     1       -      1 At 30 June 2014             388     258    (421)      595   820      18    838 For the year ended 31   Attributable to equity holders of the December 2013                           parent                                                      Share   Share Retained    Other           NCI                         capital premium earnings reserves Total reserve  Total                            2013    2013     2013     2013  2013    2013   2013                              £m      £m       £m       £m    £m      £m     £m At 1 January 2013 - restated                    353     258      143      422 1,176      32  1,208 Total comprehensive income                        -       -    (422)     (96) (518)       4  (514) Shares issued                35       -        -      308   343       -    343 Dividends declared            -       -    (130)        - (130)    (21)  (151) Own shares awarded            -       -      (2)        2     -       -      - Transactions with non-controlling interests                     -       -      (4)        -   (4)       2    (2) At 31 December 2013         388     258    (415)      636   867      17    884  For the six months ended 30 June 2013                           Attributable to equity holders of the                                          parent                                                        Share   Share Retained    Other           NCI                          capital premium earnings reserves Total reserve Total                             2013    2013     2013     2013  2013    2013  2013                               £m      £m       £m       £m    £m      £m    £m At 1 January 2013 - restated                     353     258      143      422 1,176      32 1,208 Total comprehensive income                         -       -    (194)       71 (123)       8 (115) Dividends declared             -       -     (80)        -  (80)     (3)  (83) Equity settled transactions                   -       -        1        -     1       -     1 Transactions with non-controlling interests                      -       -      (4)        -   (4)       2   (2) At 30 June 2013              353     258    (134)      493   970      39 1,009  Condensed consolidated statement of financial position Unaudited At 30 June 2014                                                As at    As at    As at    As at                                            30.06.14 30.06.13 31.12.13 31.12.12                                                     Restated Restated Restated                                      Notes       £m       £m       £m       £m ASSETS Non-current assets Goodwill                                      1,908    2,081    1,955    2,096 Other acquisition-related intangible                                       204 assets                                          109      169      141 Other intangible assets                          78       79       77       87 Property, plant and equipment                   449      502      484      506 Trade and other receivables                      91      165      104      118 Investment in joint ventures                     36       37       34       30 Deferred tax assets                             174      172      184      179                                               2,845    3,205    2,979    3,220 Current assets Inventories                                     117      133      112      124 Investments                                      57       53       39       52 Trade and other receivables                   1,298    1,370    1,380    1,500 Cash and cash equivalents                       360      433      532      419 Assets classified as held for sale      11      152      290      220      229                                               1,984    2,279    2,283    2,324 Total assets                                  4,829    5,484    5,262    5,544 LIABILITIES Current liabilities Bank overdrafts                                (21)      (7)      (9)        - Bank loans                                     (24)     (15)     (27)     (13) Loan notes                                    (115)    (106)     (61)     (40) Obligations under finance leases               (15)     (16)     (21)     (18) Trade and other payables                    (1,054)  (1,141)  (1,214)  (1,222) Provisions                              13     (65)     (30)    (195)     (27) Liabilities associated with assets classified as held for sale             11     (87)    (144)    (133)     (52)                                             (1,381)  (1,459)  (1,660)  (1,372) Non-current liabilities Bank loans                                    (214)    (392)    (140)    (324) Loan notes                                  (1,754)  (2,014)  (1,921)  (1,999) Obligations under finance leases               (29)     (37)     (31)     (43) Trade and other payables                       (14)     (14)     (13)     (18) Retirement benefit obligations                (500)    (437)    (504)    (471) Provisions                              13     (66)     (60)     (64)     (45) Deferred tax liabilities                       (33)     (62)     (45)     (64)                                             (2,610)  (3,016)  (2,718)  (2,964) Total liabilities                           (3,991)  (4,475)  (4,378)  (4,336) Net assets                                      838    1,009      884    1,208 EQUITY Share capital                                   388      353      388      353 Share premium and reserves                      432      617      479      823 Equity attributable to equity                                            1,176 holders of the parent                           820      970      867 Non-controlling interests                        18       39       17       32 Total equity                                    838    1,009      884    1,208  Condensed consolidated statement of cash flow Unaudited For the six months ended 30 June 2014                                                  Six months Six months     Year                                                      ended      ended    ended                                                   30.06.14   30.06.13 31.12.13                                                              Restated Restated                                           Notes         £m         £m       £m Profit/(loss) from continuing operations before taxation                                         85       (94)    (186) Adjustments for: Finance income                                         (5)        (7)     (13) Finance costs                                           66         71      139 Depreciation of property, plant and equipment                                               54         58      114 Amortisation of acquisition-related intangible assets                                       33         37       72 Amortisation of other intangible assets                 12         12       24 Goodwill impairment                                      -         48       46 Acquisition-related costs                                -          2        4 Impairment of other assets                               -         23       24 (Decrease)/increase in provisions                    (124)         92      187 Additional pension contributions                      (21)       (18)     (38) Profit on disposal of fixed assets and subsidiaries                                             -          -     (24) Share of profit from joint ventures                    (4)        (4)      (8) Equity-settled transactions                              1          1        - Operating cash flow before movements in working capital                                         97        221      341 Net working capital movement                          (42)       (15)       83 Net cash flow from operating activities of continuing operations                                55        206      424 Net cash flow from operating activities of discontinued operations                            (10)        (2)       31 Cash generated by operations                            45        204      455 Tax paid                                              (39)       (50)     (83) Net cash flow from operating activities                  6        154      372 Investing activities Interest received                                       15         17       21 Cash flow from equity accounted investments                                              6       (10)      (2) Net cash flow from capital expenditure                (54)       (79)    (167) Acquisition of subsidiaries                            (2)       (18)     (23) Net cash and overdraft balances acquired/disposed of                                   (8)        (2)      (8) Disposal of subsidiaries                                79        (1)       35 Sale of trading investments                           (20)          2       13 Net cash used in investing activities                   16       (91)    (131) Financing activities Share issues                                             -          -      343 Dividends paid to equity shareholders of the parent                                            (85)       (80)    (130) Dividends paid to non-controlling interests                                              (5)        (3)     (21) Net movement in borrowings                               7         80    (188) Movement in customer cash balances                    (22)          -       22 Transactions with non-controlling interests                                                -        (2)      (2) Interest paid                                         (81)       (87)    (129) Repayment of obligations under finance leases                                                 (8)        (8)      (9) Net cash flow from financing activities              (194)      (100)    (114) Net movement in cash, cash equivalents and bank overdrafts                          12      (172)       (37)      127 Cash, cash equivalents and bank overdrafts at the beginning of the period              538        439      439 Effect of foreign exchange rate fluctuations on cash held                             (22)         28     (28) Cash, cash equivalents and bank overdrafts at the end of the period                    344        430      538  For a reconciliation of net cash flow from operating activities of continuing operations to net debt see page 30. Notes to the half-yearly results announcement  These statements are prepared using actual exchange rates for the relevant periods.  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 2014. These half-yearly financial results  do not comprise statutory  accounts  and should be read in conjunction with the Annual Report and Accounts 2013.  The comparative figures for the financial year ended 31 December 2013 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 financial information in these condensed financial statements for the half year to 30 June 2014 has been reviewed but not audited.  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 2013  except for  the adoption of  IFRS10 Consolidated  Financial  Statements, IFRS11 Joint  Arrangements and  IFRS12 Disclosure  of Interest  in  Other Entities.  The  impact  of  the adoption  of  these  new  standards  is  explained below.  The comparative income  statement for the  six months ended  30 June 2013  has  been re-presented for  operations qualifying  as discontinued  during the  six  months ended 31  December 2013  and the  six months  ended 30  June 2014.  The  comparative income statement  for the  year ended  31 December  2013 has  been  re-presented for operations qualifying as  discontinued during the six  months  ended 30 June 2014. For the six  months ended 30 June 2013, revenue has  been  reduced by £15m and PBT has increased by £1m compared to the figures published previously. For the year ended 31 December 2013, revenue has been reduced  by  £143m and PBT  has been  increased by £1m  compared to  the figures  published  previously.  Basis of preparation of the income statement  The group's income statement and  segmental analysis note separately  identify  results before specific items. Specific  items are those that in  management's  judgement need to be disclosed separately  by virtue of their size, nature  or  incidence. In  determining  whether  an  event  or  transaction  is  specific,  management considers quantitative as well  as qualitative factors such as  the  frequency  or   predictability   of   occurrence.   Specific   items   include  restructuring costs, impairments and other one-off or non-recurring items  and  the reversal of items relating to the review of assets and liabilities in  the  prior year.  Adoption of new and revised accounting standards and interpretations  In the six  months ended 30  June 2014,  the group adopted  the following  new  standards and amendments:    oIFRS10 Consolidated Financial Statements, which replaces parts of IAS27     Consolidated and Separate Financial Statements and all of SIC-12     Consolidation - Special Purpose Entities, introduces a new control model     that focuses on whether the group has power over an investee, exposure or     rights to variable returns from its involvement with the investee and the     ability to use its power to affect those returns. This differs from the     previous approach where one of the main criteria used to consolidate was     to have the power to govern the financial and operating policies of the     entity. As a result of the adoption of IFRS10 the group has reclassified     certain entities within the Asia and Middle East region (being Qatar,     Bahrain, Kuwait and certain businesses within the United Arab Emirates) as     joint ventures where previously they were classified as subsidiaries. As     a result of applying IFRS11 Joint Arrangements, the group now accounts for     these businesses using the equity method.        oIFRS11 Joint Arrangements removes the option to account for jointly     controlled entities using the proportionate consolidation method.     Instead, all jointly controlled entities will be accounted for using the     equity method of accounting. As the group previously applied the     proportionate method of accounting to its jointly controlled entities this     has impacted the group's consolidated income statement and consolidated     statement of financial position.        oIFRS12 Disclosure of Interest in Other Entities is a new and comprehensive     standard on disclosure requirements for all forms of interest in other     entities, including joint arrangements, associates, special purpose     vehicles and other off balance sheet vehicles.  IFRS10, IFRS11  and IFRS12  together  form a  'suite'  of standards  that  are  effective from 1 January 2013 and have  been endorsed by the EU to be  applied  from 1 January 2014. The group has therefore adopted all three standards  for  its financial statements for the year ended 31 December 2014.  Restating prior year results for the  adoption of these standards has  reduced  the group's revenue for the  six months ended 30 June  2013 by £106m, and  for  the year ended  31 December  2013 by  £222m. The  group's PBITA  for the  six  months ended 30 June  2013 is £8m  lower, and for the  year ended 31  December  2013 is £18m lower. The group's net  assets have also been restated and  have  decreased by £30m  as at  30 June 2013  and by  £35m as at  31 December  2013.  Further details are given in note 16.  Notes to the half-yearly results announcement (continued)  2) Operating segments  The group operates on a worldwide  basis and derives a substantial  proportion  of its  revenue, PBITA  and PBIT  from each  of the  following six  geographic  regions: Africa, Asia Middle East, Latin America, Europe, North America and UK & Ireland.  For  each  of  the  reportable  segments,  the  group's  executive  committee (the  chief operating  decision maker)  reviews internal  management  reports on a regular basis.  Segment information for continuing operations is presented below:  Segment revenue                                                                       Year Revenue by reportable segment  Six months ended Six months ended    ended                                        30.06.14         30.06.13 31.12.13                                                         Restated Restated                                              £m               £m       £m Africa                                      239              246      496 Asia Middle East                            651              667    1,361 Latin America                               325              363      708 Emerging markets                          1,215            1,276    2,565 Europe                                      715              758    1,526 North America                               651              685    1,358 UK & Ireland                                790              808    1,614 Developed markets                         2,156            2,251    4,498 Total revenue                             3,371            3,527    7,063  Segment result                                                                            Year PBITA by reportable segment         Six months ended Six months ended    ended                                             30.06.14         30.06.13 31.12.13                                                              Restated Restated                                                   £m               £m       £m Africa                                            22               21       40 Asia Middle East                                  48               44      106 Latin America                                     16               23       44 Emerging markets                                  86               88      190 Europe                                            40               43       89 North America                                     33               29       59 UK & Ireland                                      54               52      121 Developed markets                                127              124      269 PBITA before corporate costs                     213              212      459 Corporate costs                                 (28)             (20)     (41) PBITA before specific items                      185              192      418 Total PBITA and PBIT by business segment PBITA before specific items                      185              192      418 Impairment and other items                         2            (131)    (314) Restructuring costs                              (8)              (4)     (66) PBITA after specific items                       179               57       38 Amortisation of acquisition-related intangible assets                                          (33)             (37)     (72) Acquisition-related expenses                       -              (2)      (4) Goodwill impairment                                -             (48)     (46) Profit on disposal of assets and subsidiaries                                       -                -       24 PBIT                                             146             (30)     (60)  Notes to the half-yearly results announcement (continued)  3) Profit from operations before interest and taxation  The income statement can be analysed as follows:                                                                            Year Continuing operations               Six months ended Six months ended    ended                                             30.06.14         30.06.13 31.12.13                                                              Restated Restated                                                   £m               £m       £m Total revenue                                  3,371            3,527    7,063 Cost of sales                                (2,716)          (2,832)  (5,782) Gross profit                                     655              695    1,281 Administration expenses                        (513)            (681)  (1,303) Goodwill impairment                                -             (48)     (46) Share of profit from joint ventures                                           4                4        8 Profit from operations before interest and taxation                            146             (30)     (60)  Included within administration expenses for the six months ended 30 June  2014  is the amortisation charge for  acquisition-related intangible assets of  £33m  (2013: £37m), restructuring costs of £8m (2013: £4m) and specific items credit of £2m (2013: charge of £131m).  Administration costs  for the  six months  ended 30  June 2013  also  included  acquisition related costs of £2m.  Administration  costs  for  the  year  ended  31  December  2013  included  an  amortisation  charge  for  acquisition  related  intangible  assets  of  £72m,  acquisition related costs of £4m, restructuring costs of £66m, specific  items  of £314m and were net of a £24m profit on disposal of subsidiaries.  4) Discontinued operations  As at 30 June 2014, following the agreement to sell the group's operations  in  Sweden, the results of this business have also been classified in discontinued operations. Operations  qualifying as  discontinued as  at 31  December  2013  included the  US Government  Solutions business,  the group's  cash  solutions  business in Sweden and the group's remaining business in Norway. The Canadian cash solutions business and the business  in Norway were sold in January  2014  for total proceeds of £89m (comprising £79m cash proceeds and £10m relating to the settlement of outstanding finance leases).  5) Acquisitions  Current Period Acquisitions  During the period the group spent £2m in respect of deferred consideration  on  prior period acquisitions.  Prior period acquisitions  The purchase consideration  and provisional fair  values of acquisitions  made  during the financial year  to 31 December 2013  and their contribution to  the  group's results for  the year are  set out  in the group's  Annual Report  and  Accounts 2013.  Notes to the half-yearly results announcement (continued)  6) Finance income                                                              Year                       Six months ended Six months ended    ended                               30.06.14         30.06.13 31.12.13                                                Restated Restated                                     £m               £m       £m Interest receivable                  5                7       13 Total finance income                 5                7       13  7) Finance costs                                                                            Year                                     Six months ended Six months ended    ended                                             30.06.14         30.06.13 31.12.13                                                              Restated Restated                                                   £m               £m       £m Total group borrowing costs                    (56)             (61)    (119) Net finance costs on defined retirement benefit obligations                  (10)             (10)     (20) Total finance costs                             (66)             (71)    (139)  8) Taxation                                                                Year                         Six months ended Six months ended    ended                                 30.06.14         30.06.13 31.12.13                                                  Restated Restated                                       £m               £m       £m UK taxation                            2                4        7 Overseas taxation                   (25)             (21)     (60) Total taxation expense                23               17       53  Notes to the half-yearly results announcement (continued)  9) Earnings per share attributable to ordinary shareholders of the parent                                                  Six months Six months     Year                                                      ended      ended    ended                                                   30.06.14   30.06.13 31.12.13                                                              Restated Restated                                                         £m         £m       £m (a) From continuing and discontinued operations Profit/(loss) for the period attributable to equity holders of the parent                            78      (206)    (362) Weighted average number of ordinary shares           1,545      1,403    1,452 Earnings per share from continuing and discontinued operations (pence) Basic and diluted                                     5.0p    (14.7)p  (24.9)p (b) From continuing operations Earnings Profit for the period attributable to equity holders of the parent                                   78      (206)    (362) Adjustment to exclude (profit)/loss for the year from discontinued operations (net of tax)        (23)         91      118 Profit from continuing operations                       55      (115)    (244) Earnings per share from continuing operations (pence) Basic and diluted                                     3.5p     (8.2)p  (16.8)p From discontinued operations Loss per share from discontinued operations (pence) Basic and diluted                                     1.5p     (6.5)p   (8.1)p (c) From adjusted earnings Earnings Profit/(loss) from continuing operations                55      (115)    (244) Amortisation of acquisition-related intangible assets                                                  33         37       72 Goodwill impairment                                      -         48       46 Acquisition-related expenses                             -          2        4 Profit on disposal of assets and subsidiaries            -          -     (24) Restructuring costs                                      8          4       66 Other specific items                                   (2)        131      314 Tax on amortisation and specific items                 (8)       (14)     (19) Non-controlling interests' share of specific items                                                    -        (3)      (3) Adjusted profit for the period attributable to equity holders of the parent                            86         90      212 Weighted average number of ordinary shares (m)       1,545      1,403    1,452 Underlying earnings per share (pence)                 5.6p       6.4p    14.6p  In the opinion of the directors the  earnings per share figure of most use  to  shareholders is the adjusted earnings per share. This figure better allows the assessment of operational performance, the  analysis of trends over time,  the  comparison of different businesses and the projection of future earnings.  10) Dividends                                                  Six months Six months     Year                               Pence per DKK per      ended      ended    ended                                   share   share   30.06.14   30.06.13 31.12.13                                                         £m         £m       £m Amounts recognised as distributions to equity holders of the parent in the period Final dividend for the year ended 31 December 2012             5.54  0.4730          -         78       78 Interim dividend for the six months ended 30 June 2013          3.42  0.2972          -          -       52 Final dividend for the year ended 31 December 2013             5.54  0.4954         85          -        - Total                                                   85         78      130  An interim dividend of 3.42p (DKK 0.3198)  per share for the six months  ended  30 June 2014 will be paid on  17 October 2014 to shareholders on the  register  on 12 September 2014. Notes to the half-yearly results announcement (continued)  11) Disposal groups classified as held for sale  At 30  June 2014,  disposal groups  classified as  held for  sale  principally  include the assets and liabilities associated with the US Government Solutions business and the group's business in Sweden.  At 31 December 2013, disposal groups classified as held for sale included  the  assets and liabilities associated with  the US Government Solutions  business,  the remaining business in Norway and the cash solutions business in Canada.  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                                                     30.06.14 30.06.13 31.12.13                                                              Restated Restated                                                           £m       £m       £m Cash and cash equivalents                                360      433      532 Investments                                               57       53       39 Net cash and overdrafts included within assets held for sale                                                   5        3       16 Net debt included within assets held for sale              4     (24)     (17) Current liabilities  Bank overdrafts and loans                           (160)    (128)     (97)  Obligations under finance leases                     (15)     (16)     (21)  Fair value of loan note derivative financial instruments                                                3       12       14 Non-current liabilities  Bank loans                                          (214)    (392)    (140)  Loan notes                                        (1,754)  (2,014)  (1,921)  Obligations under finance leases                     (29)     (37)     (31)  Fair value of loan note derivative financial instruments                                               63      117       74 Total net debt                                       (1,680)  (1,993)  (1,552)  13) Provisions                              Employee                  Claims    Contract                             benefits Restructuring  reserves  provisions Total At 1 January 2014                 26            33        57         143   259 Additional provision in the year                           7             8         8          16    39 Utilisation of provision         (9)          (20)       (8)       (126) (163) Translation adjustments          (1)           (1)       (1)         (1)   (4) At 30 June 2014                   23            20        56          32   131 Included in current liabilities                                                                 65 Included in non-current liabilities                                                                 66                                                                            131  The utilisation of the contract provision mainly relates to the settlement  of  the electronic monitoring contract with the UK Government in the first half of 2014. The final settlement was for  £109m and also included the settlement  of  two other smaller contracts in the UK.  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 2013.  Notes to the half-yearly results announcement (continued)  15) Fair value of financial instruments  The carrying amounts, fair  value and fair value  hierarchy relating to  those  financial instruments that  have been  recorded at amortised  cost where  that  differs from their fair  value, based on expectations  at the reporting  date,  are shown below:                               30 June 2014   30 June     31                                                    2013        December 2013              Category Level Carrying    Fair Carrying    Fair Carrying    Fair                                value   value    value   value    value   value Financial assets Investments   FVTPL     1         57      57       53      53       39      39 Interest      FVTPL     2 rate swaps                        41      41       58      58       46      46 Commodity      CFH      2 swaps                              -       -        1       1        1       1 Cross          CFH      2 currency swaps                             25      25       70      70       42      42 Financial liabilities Loan notes     FVH      2      (701)   (701)    (419)   (419)    (377)   (377) Interest       FVH      2        (2)     (2)      (1)     (1)      (1)     (1) rate swaps Interest       CFH      2        (2)     (2)      (3)     (3)      (2)     (2) rate swaps Commodity      CFH      2        (1)     (1)      (1)     (1)      (1)     (1) swaps Cross          CFH      2        (2)     (2)        -       -      (2)     (2) currency swaps Loan notes*     AC      2    (1,168) (1,220)  (1,701) (1,749)  (1,605) (1,675)  *€90m (£72m) of May  2012 loan notes  and €120m (£96m)  of December 2012  loan  notes are recorded at fair value through profit or loss  Category key:  FVTPL Fair value through profit or loss CFH   Cash flow hedge FVH   Fair value hedge AC    Amortised cost  Valuation techniques used to value these financial instruments are  consistent  with those used for the year ended 31 December 2013 as disclosed in note  3(h)  of the 2013 Annual Report and Accounts.  16) Impact of new accounting standards  The group has presented re-stated income statements for the 6 months ended  30  June 2013 and year ended 31 December 2013, statements of financial position at 30 June 2013, 31 December 2013 and  31 December 2012 and cash flow  statements  for the 6  months ended  30 June  2013 and year  ended 31  December 2013.  The  following pages contain reconciliations between the restated amounts and those previously published.  The adoption  of IFRS10  has  resulted in  the  group's businesses  in  Qatar,  Bahrain and Kuwait  and certain  entities in  the United  Arab Emirates  being  re-classified as joint  ventures rather than  subsidiaries. These  businesses  were previously  consolidated into  each of  the relevant  line items  in  the  group's results and statement of financial position at 100% of their  reported  results. As a result of being classified as joint ventures they fall into the scope of  IFRS11 and  are now  reported using  the equity  method. Under  the  equity method the group's share of the entities' post-tax results are shown in the income  statement under  'share of  profit from  joint ventures'  and  the  group's net investment is shown in  the statement of financial position  under  'investment in joint ventures'.  In addition to these entities  the group previously applied the  proportionate  method of consolidation to its  existing joint ventures, the most  significant  of  which  are  Bloemfontein  (South  Africa),  Bridgend  (UK)  and   Policity  (Israel).  Under  the  proportionate   method  of  consolidation  the   group  consolidated the  group's share  of each  relevant line  item in  the  group's  income statement  and  statement  of  financial position.  As  a  result  of  adopting IFRS11 the results of the  joint ventures are now consolidated  using  the equity method as described above.  The reconciliations also show any re-classification adjustments that have been made to the accounts since they were published. The restated opening  balance  sheet as at 31 December 2012 for the year ended 31 December 2013 has also been presented.  The impact of the  adoption of IFRS  10 and 11 reflects  the actual impact  of  moving entities from  full or proportional  consolidation to equity  accounted  for joint ventures, and differs from the estimates provided in the 2013 Annual Report and Accounts.  The effect  of the  adoption of IFRS  10 and  11 on  the  group's results for the year ended 31  December 2013 has been to reduce  PBITA  by £18m  interest  and tax  costs  by £3m  (2013  Annual Report  and  Accounts  estimate:  £32m  PBITA  and   £7m  of  interest   and  tax  costs),   reducing  non-controlling interests by an aggregate equal and opposite amount.  Earnings  remained unchanged. Profit attributable  to non-controlling interests was  £7m  (2013: £7m).  The difference  between estimated  and actual  impact is  mainly  attributable to the review in detail of certain joint venture agreements.  Notes to the half-yearly results announcement (continued)  16) Impact of new accounting standards (continued)  Consolidated income statement for the period ended 30 June 2013                                                               Entities                         Interim Restatements             reclassified  Interim                      results as   for IFRS10    Revised            as  results                       published     & IFRS11 continuing  discontinued restated                              £m           £m         £m            £m       £m Revenue from                                                     (15)    3,527 continuing operations                3,648        (106)      3,542 PBITA                        65          (8)         57             -       57 PBT                        (87)          (8)       (95)             1     (94) PAT                       (106)          (6)      (112)             1    (111) Profit for the                                                      -    (202) period                    (196)          (6)      (202) Profit attributable                                                 -        4 to non-controlling interests                    10          (6)          4  Consolidated statement of financial position for the period ended 30 June 2013                                Interim Restatements Re-classifications  Interim                            results as   for IFRS10                     results                             published     & IFRS11                    restated                                    £m           £m                 £m       £m ASSETS Investment in joint                                                 -       37 ventures                            -           37 Other non-current assets        3,126         (33)                 75    3,168 Trade and other                                                     -    1,370 receivables                     1,375          (5) Cash and cash equivalents         494         (61)                  -      433 Other current assets              559          (8)               (75)      476                                 5,554         (70)                  -    5,484 LIABILITIES Bank overdrafts                  (25)           18                         (7) Trade and other payables      (1,155)           14                  -  (1,141) Other current liabilities       (313)            2                  -    (311) Non-current liabilities       (3,022)            6                  -  (3,016)                               (4,515)           40                  -  (4,475) Net assets                      1,039         (30)                  -    1,009 EQUITY Share capital                     353            -                  -      353 Share premium and reserves        617            -                  -      617 Equity attributable to                                              -      970 equity holders of the parent                            970            - Non-controlling interests          69         (30)                  -       39 Total equity                    1,039         (30)                  -    1,009  Consolidated statement of cash flow for the period ended 30 June 2013                                        Interim Restatements for                                    results as           IFRS10 Interim results                                     published         & IFRS11        restated                                            £m               £m              £m Net cash flow from operating activities                                170             (16)             154 Net cash used in investing activities                               (88)              (3)            (91) Net cash flow from financing activities                              (108)                8           (100) Net movement in cash, cash equivalents and bank overdrafts          (26)             (11)            (37) Cash, cash equivalents and bank overdrafts at the beginning of the period                                    472             (33)             439 Effect of foreign exchange rate fluctuations on cash held                  26                2              28 Cash, cash equivalents and bank overdrafts at the end of the period                                    472             (42)             430  Notes to the half-yearly results announcement (continued)  16) Impact of new accounting standards (continued)  Consolidated income statement for the period ended 31 December 2013                           Annual                              Entities                        results Restatements             reclassified   Annual                              as   for IFRS10    Revised            as  results                       published     & IFRS11 continuing  discontinued restated                              £m           £m         £m            £m       £m Revenue from                                                    (143)    7,063 continuing operations                7,428        (222)      7,206 PBITA                        56         (18)         38             -       38 PBT                       (170)         (17)      (187)             1    (186) PAT                       (226)         (15)      (241)             2    (239) Profit for the                                                      -    (357) period                    (342)         (15)      (357) Profit attributable                                                 -        5 to non-controlling interests                    20         (15)          5  Consolidated statement of financial position for the period ended 31 December 2013                                          Annual Restatements for                                     results as           IFRS10 Annual results                                      published         & IFRS11       restated                                             £m               £m             £m ASSETS Goodwill                                 1,966             (11)          1,955 Investment in joint ventures                 -               34             34 Other non-current assets                 1,022             (32)            990 Trade and other receivables              1,394             (14)          1,380 Cash and cash equivalents                  594             (62)            532 Other current assets                       376              (5)            371                                          5,352             (90)          5,262 LIABILITIES Bank overdrafts                           (22)               13            (9) Trade and other payables               (1,220)                6        (1,214) Other current liabilities                (442)                5          (437) Bank loans                               (169)               29          (140) Non-current liabilities                (2,580)                2        (2,578)                                        (4,433)               55        (4,378) Net assets                                 919             (35)            884 EQUITY Share capital                              388                -            388 Share premium and reserves                 479                -            479 Equity attributable to equity                                              867 holders of the parent                      867                - Non-controlling interests                   52             (35)             17 Total equity                               919             (35)            884  Consolidated statement of cash flow for the period ended 31 December 2013                                          Annual Restatements for                                     results as           IFRS10 Annual results                                      published         & IFRS11       restated                                             £m               £m             £m Net cash flow from operating activities                                 400             (28)            372 Net cash used in investing activities                               (163)               32          (131) Net cash flow from financing activities                                (95)             (19)          (114) Net movement in cash, cash equivalents and bank overdrafts            142             (15)            127 Cash, cash equivalents and bank overdrafts at the beginning of the period                                     472             (33)            439 Effect of foreign exchange rate fluctuations on cash held                 (27)              (1)           (28) Cash, cash equivalents and bank overdrafts at the end of the period        587             (49)            538  Notes to the half-yearly results announcement (continued)  16) Impact of new accounting standards (continued)  Consolidated statement of financial position for the period ended 31 December 2012                                          Annual Restatements for                                     results as           IFRS10 Annual results                                      published         & IFRS11       restated                                             £m               £m             £m ASSETS Goodwill                                 2,108             (12)          2,096 Investment in joint ventures                 -               30             30 Other non-current assets                 1,114             (20)          1,094 Trade and other receivables              1,506              (6)          1,500 Cash and cash equivalents                  469             (50)            419 Other current assets                       413              (8)            405                                          5,610             (66)          5,544 LIABILITIES Bank overdrafts                           (17)               17              - Trade and other payables               (1,234)               12        (1,222) Other current liabilities                (157)                7          (150) Non-current liabilities                (2,971)                7        (2,964)                                        (4,379)               43        (4,336) Net assets                               1,231             (23)          1,208 EQUITY Share capital                              353                -            353 Share premium and reserves                 823                -            823 Equity attributable to equity                                            1,176 holders of the parent                    1,176                - Non-controlling interests                   55             (23)             32 Total equity                             1,231             (23)          1,208  Non GAAP measures  Net cash flow reconciliation to net debt^1  A reconciliation of PBITA to movement in net debt is presented below:                                                Six months Six months                                                    ended      ended Year ended                                                 30.06.14   30.06.13   31.12.13                                                       £m         £m         £m PBITA                                                179         57         38 Non-cash movements Depreciation                                          54         58        114 Amortisation of other intangible assets               12         12         24 Write down of fixed assets                             -         23         24 Share of profit from joint ventures                  (4)        (4)        (8) Equity-settled transactions                            1          1          - Increase in provisions                                 5         92        221 Working capital                                     (62)       (91)          7 Cash flow from operating businesses                  185        148        420 Corporate items: EM receivable (2013: Olympics receivable)             27         76         76 Cash flow from continuing operations                 212        224        496 Cash from discontinued operations                   (10)        (2)         31 Net cash generated by operations:                    202        222        527 Investment in the business Investment in capital expenditure and non-current assets                                  (54)       (79)      (167) Restructuring spend                                 (20)          -       (34) Net movement in finance leases                       (3)       (12)       (12) Disposal proceeds                                     79        (1)         35 Net debt acquired/disposed of                          2        (2)        (8) Acquisitions                                         (2)       (18)       (23) Net investment in the business                         2      (112)      (209) Net cash flow after investing in the business        204        110        318 Other (uses)/sources of funds Net financing                                       (66)       (70)      (108) Tax                                                 (39)       (50)       (83) Pensions                                            (21)       (18)       (38) Dividends                                           (90)       (83)      (151) Share capital                                          -          -        343 Electronic Monitoring:  - settlement                                 (109)          -          -  - fees                                         (7)          -          - Other                                               (16)       (12)         18 Net sources/(uses) of funds                        (348)      (233)       (19) Net cash flow after investment, financing and tax                                                (144)      (123)        299 Net debt at beginning of period                  (1,552)    (1,829)    (1,829) FX                                                    16       (41)       (22) Net debt at end of period                        (1,680)    (1,993)    (1,552)  ^1at actual exchange rates  A reconciliation of net cash flow from operating activities of continuing operations as presented in the statutory cash flow to cash flow from continuing operations in the net cash flow reconciliation to net debt is presented below:                                    Six months ended Six months ended Year ended                                           30.06.14         30.06.13   31.12.13                                                 £m               £m         £m Net cash flow from operating activities of continuing operations                                      55              206        424 Adjustments to exclude: Pension deficit payments                        21               18         38 Electronic Monitoring payments (including fees)                               116                -          - Restructuring spend                             20                -         34 Cash flow from continuing operations                                     212              224        496  Non GAAP measures (continued)  Group's definition of net debt to EBITDA  The group's calculation of net debt to EBITDA using its own definition is presented below:                               Six months                Six months   Rolling 12                                ended 30     Year to 31   ended 30 months to 30                               June 2013  December 2013  June 2014    June 2014                                      £m             £m         £m           £m PBITA (before specific items)                              192            418        185          411 Add back: Depreciation                         58            114         54          110 Amortisation of non-acquisition related intangible assets                    12             24         12           24 EBITDA                              262            556        251          545 Net debt per Note 12                             1,552                   1,680 Group's definition of Net debt:EBITDA ratio                                  2.8                     3.1                      EBITDA Net Debt                         £m       £m Pre IFRS10             568    1,691 IFRS10 adjustments    (23)     (11) Post IFRS10            545    1,680  For further enquiries, please contact: Helen Parris   Director of Investor Relations +44 (0) 1293 554400  Media enquiries:  Adam Mynott  Director of Media Relations  +44 (0) 1293 554400 Piers Zangana  Media Relations Manager  +44 (0) 1293 554400 Faeth Birch   RLM Finsbury +44 (0) 207 251 3801    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  a  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 quoted on the London Stock Exchange and has a secondary stock  exchange  listing in  Copenhagen. G4S  is active  in  more than  120 countries  and  has  620,000 employees. For more information on G4S, visit www.g4s.com.  Presentation of Results:  A presentation to investors and analysts is taking place today at 08.30hrs at the London Stock Exchange.  The presentation can also be viewed by webcast using the following link: http://view-w.tv/707-803-14696/en  Dividend payment information 2014 interim dividend:  Announce - Wednesday 13 August 2014 Ex-date - Wednesday 10 September 2014 Record date - Friday 12 September 2014 Last day for DRIP elections - Monday 22 September 2014 Pay date - Friday 17 October 2014  Q3 IMS and Annual Capital Markets Day  A presentation will be held in London on 13 November 2014.  ------------------------------------------------------------------------------  This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients. The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein. Source: G4S plc UK DK via Globenewswire HUG#1848418  
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