The number and varying sizes of buildings comprising the estate opened up an opportunity to approach the security in a unique way. A number of areas were identified whereby electronic security systems would either enhance security or carry out a task automatically, allowing manned security resource to be reduced and/or utilised more effectively.

A combination of systems is used, comprising primarily G4S’ multiMAX Integrated Access Control and Alarms Monitoring Systems, together with an Audio/Video Intercom System and the existing Intruder Detection System.

The overall aim of the AEGIS solution was cost reduction and improved efficiency. A key target for the customer was an overall reduction in security spend with improved “core hours” manned guarding. This target was met by the AEGIS solution – with the additional benefit of a better use of resources out of hours, due to a better deployment of officers. The same performance levels were achieved, as measured against the customer’s KPIs, at a lower cost.

The customer has seen a reduction of 100,000 manned guarding hours per annum as a result of the solution, whilst re-aligning remaining resources to better fit its business need.

Justice Services in the UK started new contracts in electronic monitoring of offenders and immigration in 2005.

Overall organic growth in Europe for the full year was slightly less than the first half of the year at 2.5% overall, reflecting the challenges of improving turnover growth in the UK and Scandinavia.

In the UK organic growth was negative for the full year, but good cost control and delivery of the cost savings from integrating the two UK security businesses meant that profitability was ahead of target. The business focused on integrating the two companies, as a result of the merger in 2004, as well as implementing new regulatory requirements for individual security officers to obtain licences to operate in the industry. This involved extra training, an examination and criminal background checks for 10,000 of its staff. Customer retention during such a period of change was excellent at 85%.

Justice Services in the UK started new contracts in electronic monitoring of offenders and immigration and much of the year was focused on implementing these contracts and on continuously improving service levels. As we expected, profitability in Justice Services was reduced in 2005 compared to prior years as a result of the terms of the new electronic monitoring contract which included lower margins, but increased geographical coverage and numbers of offenders being monitored.

In the Netherlands our manned security business performed well and finished 2005 with strong organic growth, mainly through higher volumes in aviation security contracts. We concluded the divestment of Falck Security in the Netherlands in November 2005, which was a condition of the Securicor and Group 4 Falck merger. This meant that stability returned to the Dutch security market. We expect further improvements in the Netherlands in 2006.

France had a difficult year as the industry was unable to recover government-mandated wage increases from customers during the first half of the year. We have installed a new management team and expect the business to improve in 2006.

Elsewhere in Europe, there were strong performances in Germany, Austria, Hungary, the Baltic States and Luxembourg. Profitability in Greece returned to normal levels in 2005, following the boost from the Athens Olympics security contract in 2004.

Organic growth in North America was 8.5%, representing a strong performance in the US, but a difficult year in Canada, which was affected by the full year impact of the loss of a major contract.

In the US Wackenhut continued its strong performance, with organic growth of 9% overall. The government and nuclear customer sectors were particularly strong, and the commercial sector also performed ahead of expectations, assisted by additional revenue relating to services provided as a result of the hurricanes in 2005.

In New Markets organic growth overall was 19.3%, continuing the strong performance of the first half into the remainder of the year. India, the Middle East, Latin America, South East Asia and Central Asia all performed ahead of expectations.

The business in South Africa has settled down following the completion of the merger integration and the conclusion of Black Economic Empowerment negotiations.

International Accounts are gaining momentum and we are working hard to make the most of our international footprint to service these customers.

In the US Wackenhut continued its strong performance, with organic growth of 9% overall.

In New Markets organic growth overall was 19.3%, continuing the strong performance of the first half into the remainder of the year.

This allows us to bring together our skilled security workforce with the latest technology to provide security solutions for our customers.

Our security systems strategy focuses primarily on business customers although we do have consumer customers in some markets.

We expect demand for combined technology and manpower solutions to grow slowly over time and our business is well positioned to take advantage of these market developments.

We also have strong expertise in the specialist areas of CCTV and access control and are able to build these products into our overall security solutions.

In Europe organic growth in the systems division was 4% overall, a good improvement on the first half of the year.

Our largest systems business in Denmark had a very strong year with good margin improvements. There was also a good result in Israel and improvements in France and Finland where the businesses moved into profitability in 2005 having made small losses in 2004.

In New Markets systems organic growth was around 49%, continuing the trend of prior years, albeit from a relatively small revenue base. We continue to introduce security systems capability into many new markets, with particularly positive developments in the Middle East, Latin America and East Africa.

The security systems division achieved overall organic growth of 8.0% in 2005 and margins improved to 8.2%.