Securicor plc
Sutton Park House
15 Carshalton Road
Sutton
Surrey SM1 4LD, UK
Telephone: +44 (0)20 8770 7000
Registered no. 3811216
www.securicor.com
Annual Report and Accounts Year ended 30 September 2003
Securicor plc
Annual Report and Accounts 2003
The international security
solutions group Contents
Vision 1
Financial highlights 1
Product review 2
Chairman’s statement 6
Chief Executive’s review 8
Group at a glance 11
Regional review 12
Corporate social responsibility 20
Financial review 22
Board of directors 26
Report of the directors 29
Corporate governance report 32
Remuneration report 34
Directors’ responsibilities 39
Independent auditor’s report to the 
members of Securicor plc 40
Consolidated proﬁt and loss account 41
Consolidated balance sheet 42
Consolidated cash ﬂow statement 43
Statement of total recognised gains and losses 44
Note of historical cost proﬁts and losses 44
Reconciliation of movement in equity shareholders’ funds 44
Statement of accounting policies 45
Notes to the consolidated accounts 47
Parent company balance sheet 71
Notes to the parent company balance sheet 72
Group ﬁnancial record 74
Notice of meeting 75
Financial calendar and corporate addresses 76
This report is printed on Phoenixmotion paper made in Germany from 100% Totally Chlorine Free ﬁbres 
from actively sustained forests. The paper mill holds the Nordic Swan Award for environmental practices.
Designed and produced by Merchant with Carrow Design. Printed by St Ives Westerham Press.  Securicor Annual Report and Accounts 2003 1
Financial highlights
To become a global top-three provider of security
solutions and expertise through the delivery of 
world-class outsourcing in cash management, 
integrated security and justice services.
By focusing on customer needs and investing in the
recruitment and development of the best people in 
the industry, we will deliver innovative, market-leading
services in each of our businesses.
Consistent delivery of these goals will provide long-term
customer relationships, a high-quality, committed
workforce and increased shareholder value.
Vision
Turnover of 
£1,324m
Organic growth of 
5.1%
Underlying earnings per share up 
7% to 7.3p
Full year dividend up 
14% per share at 2.4p 2 Securicor Annual Report and Accounts 2003
Product review
Cash Services
Market Development Phases
Immature and start-up cash services businesses are
generally developed in response to customer demand, 
with little investment in infrastructure, low market share
and low margins. This basic provision of cash transportation
in development phase one provides a solid foundation 
for future growth.
As a cash business increases its market share it can begin 
to lead the market in terms of product development and
innovation. Its ability to reinvest in the business means
that, in phase two, ATM replenishment and ﬁrst-line
maintenance services can be provided and the business
becomes more sophisticated in terms of differentiating 
its products between the retail and ﬁnancial sectors. 
At this stage, the business is also likely to be providing
some elements of retail deposit processing. 
Phase three involves a much greater understanding of 
the cash cycle and the provision of more integral cash
management activities, operating in a more regulated
environment where a central bank relationship is essential.
At this stage, high speed/high volume processing capability
is vital, along with the ability to provide ATM cash
forecasting and second-line maintenance. The Securicor
model includes the co-location of cash transportation and
cash management services in a single centre, providing
efﬁcient distribution links throughout the cash cycle. 
Cash Services
Actual Long-term Actual % Long-term
Organic Plan Organic Margin Plan
Growth Growth % Margin
FY/02 9% 10%+
HY/03 6% 8%
FY/03 5% 9%
Securicor now operates in three core product
areas – Cash Services, Security and Justice
Services. Each of those products passes through
a number of development phases over time,
moving the businesses towards our goal of
providing security solutions to our customers.
Various markets are at different stages of
development and this section of the report 
will provide an outline of the different phases
and a view of the current status of our 
business units.
8%+ 10%+
11%
89%
Cash
Management
Cash
Transport
Global Cash Services Turnover Split Securicor Annual Report and Accounts 2003 3
As cash businesses move into phase four, the ﬁnal phase 
of development, they have a number of partnerships with
ﬁnancial institutions and can manage a whole ATM
network, including the support systems and asset base. 
At this stage they are providing complete outsourced cash
solutions to the banking and retail communities. 
This would include monitoring and forecasting of cash
demand for each ATM, cash replenishment, cash stock
management, monitoring of the status of the ATM 
and its subsequent maintenance. In this phase, ATM
availability management is handed over to the cash
services company by the financial institution and requires
the cash services provider to be working totally in
partnership with its customers.
Market Drivers
Experience in the UK, Europe and Asia indicates that
mature cash transportation markets operate most efﬁciently
when two or three national operators are present. This
provides sufﬁcient scale to sustain the requisite large
nationwide infrastructure whilst encouraging a long-term
investment strategy in a stable market.
Financial institutions and retailers have different cash
transport and management requirements, which means that 
the ability to focus on key sectors is important in the cash
services market. Whilst retailers are experiencing cost and
price pressure, ﬁnancial institutions are exiting back-ofﬁce
cash management functions to focus on providing ﬁnancial
services to their customers. This has led to cash services
companies becoming more involved in the overall cash cycle.
In the ﬁnancial institution sector, initial cash centre
outsourcing opportunities are developing in the UK, Europe
and Asia, and interest is rapidly building in outsourcing
ATM availability management. Detailed knowledge of
central bank strategies, of local markets, and of the
prevailing regulatory environment are key to success.
Strong customer relationships through excellent account
management, based on service delivery with high-quality
information systems, are signiﬁcant differentiators and
fundamental in providing cash solutions to our customers. 
Growth and Margins
The majority of our cash services global turnover comes
from transportation, including ATM replenishment, with 
just 11% coming from cash management. 
This is a good indication that the majority of our businesses
are still in the early phases of market development and it
demonstrates why we believe there are major opportunities
for us in this product line. 
Organic growth in cash services slowed to 5% in 2002/3
from 9% the previous year, due to issues primarily in
Germany and other European markets. As we look ahead,
we are conﬁdent that growth will return as we see the ﬁrst
signs of improvement in our key markets. Proﬁt margins
remain close to our target of 10% plus.
Cash Services Market Development Phases
Basic CIT
provision
Low margin
Low market share
Little investment in
IT or infrastructure
Responding to 
customer demand
CIT and Retail
Deposit Processing
best practice
Sector based
Market leadership
Signiﬁcant 
market share
FI and Retail focus
ATM replenishment
and 1st line
maintenance
Planning for change
ATM, CIT 
and Cash
Management
End to end cash
management
Regulated 
environment
Central bank 
relationship
ATM cash 
forecasting and 2nd
line maintenance
Utility processing
model – lowest cost 
Outsourced
Cash Solutions
Completely 
outsourced cash
solutions
ATM network 
management
FI partnerships Guarding 
Best Practice
Sector based
Market leadership
Planning for
change
Risk 
Management
Organic 
development 
or partnership 
Electronic 
Security
Partnership/acquire
to gain capability
Security
Solutions
Emphasis on sales
and integration 
of components
depending on 
customer needs
4 Securicor Annual Report and Accounts 2003
Product review (continued)
Security
Market Development Phases
There are four key phases in the security sector, starting with
phase one, manned guarding best practice. 
In this phase, the product is provided on a sector basis,
where sector leadership is also an essential factor for success.
At this point businesses provide tailored guarding services,
but are planning to incorporate further elements into the
product mix.
The risk management component of the security model is a
key part of extending our offer to new customers in phase
two. If risks to a business can be highlighted, then one is in a
good position to recommend solutions to reduce risk and to
play a lead role in providing security services for that customer.
Phase three of this model adds the technology aspects of security.
In the Securicor model we would partner or acquire on a small
scale to add an electronic capability to the product range and
move into the ﬁnal phase, which we call security solutions.
In phase four, our businesses focus on risk assessment and
building solutions to customer needs, whether they are
manned guarding, technology or an integrated combination
of services. Whilst we believe in the long-term viability of
integrated security, we also believe that customer demand 
in the short to medium-term will be in choosing elements 
of the product mix to suit their requirements.
Market Drivers
Our security product model is led by the Securicor brand
which is a strong differentiator in our markets, coupled with
a product range tailored to meet customer needs.
There is an increasing focus on risk management across
businesses worldwide and their security demands are
becoming more complex. Industry regulation, particularly 
in the UK, will have a positive impact on the sector by
raising standards and enabling quality companies to 
further differentiate their product range.
We build into our business the ability to demonstrate a
return on investment by assessing risk prior to commencing
a contract and measuring our impact on that risk over time.
Electronic security remains a key component of our product
range, which we currently provide through sub-contractors
and partners. We are also continuing to explore monitoring
opportunities to build on our existing customer base. 
Growth and Margins
Organic growth in our security businesses is currently
running at 3%, behind our target of 5% plus and the 
7% achieved in 2001/2. This is mainly due to economic
pressures in most of our major markets.
We have maintained our 3% proﬁt margin achieved last
year and in the ﬁrst half of this year in a relatively ﬂat
market. Excluding the US, our security proﬁt margin is 4%.
Security
Actual Organic Long-term Actual % Long-term
Growth Plan Organic Margin Plan
(excl. US) Growth (incl. US) % Margin
FY/02 7% 3%
HY/03 4% 3%
FY/03 3% 3%
5%+ 5%+
Security Market Development Phases Demand 
Creation
Budget constraint
Capacity need
Catalyst for public
sector reform
Non-justice 
outsourcing 
(Utilities, IT, etc)
Legislative
Change
Often laws need 
to change to allow
private sector
provision
Even if not required
often politically 
expedient
Pilots
Low risk outsourcing 
supplier/purchaser
Outsourcing
Outsourcing
solutions: turnkey,
partnering
Securicor Annual Report and Accounts 2003 5
Justice Services
Market Development Phases
In the justice market, there are four development phases. 
In phase one, governments are usually under pressure due 
to budget constraints and capacity issues in the justice system
which provide a catalyst for public sector reform. There is
also likely to have been some non-justice government
outsourcing in areas such as IT and utilities.
Phase two is a major step change which usually takes place
in a very short timescale where, in most cases, laws need to
change in order to permit the outsourcing of justice services.
Phase three is normally a small-scale pilot. There is a
supplier/purchaser relationship where the government 
is likely to request the private sector to manage facilities 
and people within the judicial process.
Phase four, the ﬁnal development phase, is where the 
private sector becomes a partner with the government and
provides completely outsourced justice solutions, such as 
the design, construct, manage and ﬁnance (DCMF) prison
contracts along with tagging, monitoring, response and
escorting services.
Market Drivers
Tagging was a major growth area during the year as the
number of taggees in the UK and US continued to grow, 
with judicial systems relying on tagging as a serious
alternative to a custodial sentence.
Our experience shows that there is now a signiﬁcantly greater
acceptance from both the government and public of private
sector involvement in the
justice market. The UK PFI
model is expanding into other
countries and electronic
monitoring has been assessed
in some 15 countries
throughout the world. We
currently monitor some 8,000
taggees each day in the UK,
US and Channel Islands.
There are opportunities for police outsourcing and
immigration services in the UK as well as for the
development of the technology aspects of our products to
enable us to actively track an individual’s precise location
through GPS technology.
Growth and Margins
Organic growth in the justice sector has been strong, due
mainly to the growth in the tagging sector and globally 
our proﬁt margins are on target at 10% plus.
Justice Services
Actual Long-term Actual % Long-term
Organic Plan Organic Margin Plan
Growth Growth % Margin
FY/02 13%
15%+
10%+
10%+ HY/03 28% 9%
FY/03 23% 10%+
Number of new UK 
Taggees
21,759
7,096
37,898
12,744
01/02          02/03    
Total UK        Securicor
Justice Services Market Development Phases 6 Securicor Annual Report and Accounts 2003
Chairman’s statement
Results – Proﬁt before interest, taxation, amortisation, exceptional items and
discontinued operations was £80.2m compared with £80.0m (as adjusted for 
a non-recurring proﬁt of approximately £3m related to services in connection 
with the introduction of the Euro) for the previous year. Proﬁt margins declined 
in the United Kingdom and in the EMEA (Europe, Middle East and Africa) region,
increased in Asia and remained the same in the Americas. The group’s overall
proﬁt margin on sales fell from 6.9% to 6.3%.
Dividend 
The directors recommend a ﬁnal dividend of 1.62p per share, payable on 5 April 2004, which, taken
with the interim dividend of 0.78p per share paid on 30 September 2003, makes a total ordinary
dividend of 2.40p per share for the year ended 30 September 2003. This represents an increase 
of 13.7% per share over the previous year’s dividend.
Disposals
In July 2003 we sold our remaining 50% interest in the Distribution division to Deutsche Post for 
u247m (£167m). We returned £75m of the sale proceeds to our shareholders by way of a special
dividend of 12p per share which was accompanied by a 17 for 20 consolidation of the then existing
Securicor shares. During the year, we also completed the sale of Securicor Information Systems, the
last of our Communications businesses, so that by the year end we had become totally focused on
our security business.
Chairmanship
Sir Neil Macfarlane retired as Chairman in May. It had been intended that I would succeed Sir Neil 
as Chairman at the beginning of November but, due to ill-health, Sir Neil decided to step down
earlier and I thus assumed the Chairmanship in May.
Sir Neil served on the board of Securicor with great dedication and skill over a period of ten years,
becoming Chairman in 1995. During his period of ofﬁce two very signiﬁcant corporate events took
place. First, in 1996, the group’s two listed entities, Securicor Group plc and Security Services plc,
with ﬁve classes of shares between them, were combined into a single Securicor plc with one class 
of shares. Then, in 1999, the group sold to BT its 40% stake in Cellnet for £3.15bn. Sir Neil’s former
colleagues have told me how much they appreciated his support and wisdom throughout his tenure
and particularly during those two critical transactions.
01    02      03
Dividend per share
(pence)
1.65
2.11
2.40
01    02      03
Underlying EPS* 
(pence)
6.0
6.8
7.3
*Excluding effect of Euro
introduction in 2002. Securicor Annual Report and Accounts 2003 7
I am pleased to report that Sir Neil is now ﬁt again and, whilst thanking him for his great
contribution to Securicor, we wish him a long and happy retirement.
Staff tributes
I know that each year it is traditional for the Chairman to pay tribute to the commitment 
and loyalty of Securicor staff throughout the world. I have so far only had limited opportunity 
to get to know the group’s employees, but those whom I have met have impressed me with 
their enthusiasm and expertise.
The group has well over 100,000 staff working worldwide and I thank them all for their contribution
to the continued wellbeing of Securicor. I commend in particular the many employees around the
world who have been the recipients of bravery awards as a result of their action when confronted 
by criminals.
Senior management
I have also been impressed by the strength of Securicor’s senior team under the leadership of Nick
Buckles. The group is fortunate to have a core of vastly experienced, highly commercial managers 
who are ever alert to new opportunities in the international security industry.
Future prospects
At the half year, we indicated that difﬁcult market conditions would impact some of our businesses 
in the second half. Despite these market difﬁculties, our businesses have performed well overall,
maintaining the focus on service delivery and customer retention whilst driving out costs. We continue
our security focus. With our leading market positions, strong balance sheet and high-quality
management, there are good opportunities for turnover and margin growth in the year ahead, 
through both organic expansion and acquisitions.
We are responding robustly to the challenges which we continue to face in some of our markets and 
we can therefore look forward to 2004 with greater conﬁdence.
Colin Sharman
01    02      03
Underlying EBITA*
(£m)
68.8
80.0 80.2
*Excluding effect of Euro
introduction in 2002. 8 Securicor Annual Report and Accounts 2003
Chief Executive’s review
When we entered the ﬁnancial year in October 2002, we were moving into 
the next phase of our development to transform the organisation into a focused
security group. We achieved a number of key milestones and faced various
challenges in the year which would shape the future of the business.
Focus on Security Sector
The sale to Deutsche Post of our remaining 50% stake in the Distribution joint venture was completed
in July 2003 at a price of £167m and we were pleased to return nearly half of the proceeds to
shareholders as a special dividend. 
In May, whilst the Distribution transaction was being ﬁnalised, we completed the sale of Securicor
Information Systems to its management team. The completion of these two transactions means that
the group is now purely focused on the security businesses and that in future cashﬂow will be
stronger and more predictable. 
Trading Performance
Trading in the ﬁrst half of the year was satisfactory overall, although some of our markets were
proving to be difﬁcult from an economic point of view. European security markets were generally
facing price pressure but Germany in particular was declining at a faster rate. Asia was under
deﬂationary pressure and also had to contend with the outbreak of the SARS virus, impacting 
on tourism and trade generally. In UK Cash Services, we were faced with a higher than budgeted
wage award, but did secure a two year deal along with an agreement to implement some essential
cost-saving measures across the business.
2002-2003 at a glance
October 2002
Lloyds TSB cash centre
outsourcing contract
commences
November 2002
Plans to outsource UK 
Post Ofﬁce cash handling 
to Securicor withdrawn
December 2002
Merger of Securicor’s
Malaysian business and
Safeguards Corporation
completed
The UK business of
Securicor Wireless sold
February 2003
Complete withdrawal from
US aviation security sector
March 2003
Agreement reached to sell
the remaining 50% of
Distribution joint venture 
to Deutsche Post
April 2003
Securicor Macau merged
with Great Wall – Securicor
becomes majority
shareholder with 51% 
of the merged entity
Acquisition of 70% of 
Inco Holdings, the leading
provider of security 
services in Botswana Securicor Annual Report and Accounts 2003 9
May 2003
Lord Sharman succeeds 
Sir Neil Macfarlane 
as Chairman 
Interim results indicate
difﬁcult market conditions
which would affect the
company’s performance 
in the second half of the
ﬁnancial year
Securicor acquires Geldnet,
a leading company in the
Dutch cash services sector
Sale of Securicor
Information Systems to the
existing management team
June 2003
Sale of Securicor Cash
Machine
July 2003
Sale of remaining 50% stake
in Distribution joint venture
to Deutsche Post completed
Share consolidation reduces
number of shares to 531m
Special dividend of 12p per
share paid to shareholders
August 2003
Acquisition of a majority
shareholding in Donar, 
a Chinese ATM service
company
September 2003
Trading statement indicates
that operating results would
be in line with consensus
expectations 
So with those challenges in mind, we advised investors in May that our results against market
expectations would inevitably be impacted in the second half. However, we responded robustly 
to the challenges that presented themselves and achieved a full year result which was in line with 
our underlying performance in the previous year.
Cash Services – A Strong Business Model
Having highlighted some of the market conditions and business issues which were affecting Securicor
and its competitors, the security sector became temporarily unpopular with some investors who
questioned the viability of the various business models in the market. Cash Services in particular 
was criticised and it was suggested that there was no further room for growth in the sector. 
Our experience tells us that this is not the case. Whilst credit cards are popular, cash in circulation
grows in most markets and is the consumer’s favourite method of payment. The traditional cash
transportation market has seen a decline in overall volume, but the long-term opportunities in
ﬁnancial institution and retail outsourcing far outweigh any transportation volume issues. With
many of our markets at different stages of development we can see how this model evolves over
time and how we can play a part in facilitating that change. We have successfully rolled out three
major cash management contracts in the UK and our other cash services markets are seeing moves
towards outsourcing increase in pace as customers focus on their core business. 10 Securicor Annual Report and Accounts 2003
Chief Executive’s review (continued)
Security – Legislation Driving Change
Whilst we believe that integrated security provides opportunities for growth, this is likely to be a longer-
term requirement from our customers. In the short to medium-term, we will provide a range of
products from which we can select the most appropriate solution for each contract. New legislation will
help drive change in some markets. Across Europe, the implementation of the Working Time Directive
will provide planning challenges for all businesses. In the UK, the establishment of the Security Industry
Authority will improve standards across the industry and differentiate high quality companies from the
rest of the market. And across the world, new maritime legislation is providing opportunities for growth
in the port and shipping sectors.
Justice Services – A Growth Opportunity
As support for private sector involvement in justice services grows, this product area continues 
to develop at an exceptional rate. Our Justice Services business had a good year with very strong
growth in tagging, the highest service levels ever in our custody and escorting business, and with
our prison in South Wales being named as one of the best performing prisons in England and
Wales by the National Audit Ofﬁce.
In 2004, we will learn the results of two major contract re-bids that we have been focusing on for
some time. We hope that we will be successful and that our share of the UK justice market will
continue to expand. Other opportunities to move existing products into new markets and to continue
our extension into the police outsourcing sector will deliver further growth in the coming year.
Group Chairman
We were pleased to welcome Colin Sharman as our new Chairman in May following Sir Neil Macfarlane’s
decision to stand down earlier than he had planned following a bout of ill-health. We are all very
grateful for the tremendous support which Neil provided over the years.
Nick Buckles Securicor Annual Report and Accounts 2003 11
Turnover by product
2002 2003
Turnover by region
2002 2003
Justice
Cash
Security
8%
39%
53%
Asia
Americas
UK
EMEA
6%
14%
45%
35%
Justice
Cash
Security
7%
33%
60%
Asia
Americas
UK
EMEA
6%
33%
17%
44%
Group at a glance 2003 2002 2001
Turnover £570m £537m £503m
EBITA £54.6m £54.0m £48.9m
Employees 20,080 19,632 19,292
Regional Review
12 Securicor Annual Report and Accounts 2003
Securicor Cash Services experienced challenging market
conditions and signiﬁcant cost pressures in the year, including a pay
award of 5% and a further 6% in 2003/4, and rising attack losses.
The business responded with various cost-reduction programmes
for branch and head ofﬁce overheads and will be seeking above-
inﬂation price increases at contract renewal negotiations. Sales
revenue from cash transportation was marginally ahead of last year,
whilst growth in ATM sales slowed from the 20% rate experienced
in recent years to 6%. A four-year outsourcing agreement, secured
in association with the sale of the 1,200 ATM Securicor Cash
Machine estate, has now established Securicor as a leading
provider of complete end-to-end ATM back-ofﬁce solutions.
Following the successful start-up of major cash processing contracts
with Alliance & Leicester, Clydesdale and Lloyds TSB, Securicor
Cash Centres has been integrated within Cash Services to facilitate
the provision of a total cash solution to customers. The integration
will also lead to operational improvements and reduced
administrative costs.
Price and volume pressures in the manned guarding sector resulted
in a slight reduction in sales revenue at Securicor Security with price
pressure being particularly acute in localised markets such as the City
of London. However, good cost discipline throughout the company
enabled gross margins to be maintained at the previous year’s level.
New work awarded included the three-year covert security services
contract at Marks & Spencer which has now been largely rolled out
across the country and which, together with similar work undertaken
for Boots and Safeway, has established the company as a leading
provider of covert security services to the retail sector. 
Securicor Aviation enjoyed a good year, with a double-digit
sales uplift, the retention of the major accounts with British
Airways, United Airlines and Highlands and Islands Airports 
and the winning of new contracts with Virgin Atlantic and 
Cardiff International Airport.
Securicor Justice Services had an excellent year, enjoying
signiﬁcantly improved sales and proﬁts. There was a strong
performance from the electronic monitoring business, whilst the
court and escorting services side of the business achieved its best
service delivery performance, despite a record number of prisoner
movements. HMP & YOI Parc at Bridgend, with a population of
more than 1,000, is now one of the country’s largest and most
complex prisons and was named in a June 2003 National Audit
Ofﬁce report as being one of the best performing prisons in
England and Wales. A 25-year PFI contract was signed earlier in the
year under which a Securicor-led consortium will design, construct,
manage and ﬁnance an 80-bed secure training centre in Milton
Keynes. This facility, due to open in June 2004, will house young
people aged 12-17. In July, a pilot contract commenced with
British Transport Police, enabling the company to enter the police
support services market.
Securicor International Valuables Transport delivered another
strong performance despite the uncertain global trading environment
and increased insurance costs. EBITA was up almost 10%, with the
Johannesburg ofﬁce generating a strong ﬁrst full-year contribution
and the new Frankfurt ofﬁce trading proﬁtably following its opening
in May. Further ofﬁce openings are expected soon.
UK
Regional review
Regional Managing Director: Ken Niven
Ken joined Securicor in 1996 following a
successful earlier career within the logistics
management industry where he held senior roles
at Express Foods, Exel Logistics and Coca Cola.
Ken was appointed MD of the UK Cash Services
operation in 1998 and to his current regional
role in 2001. Outlook
Market conditions are expected to stabilise in Cash Services and
Security in 2003/4 although there will not be a marked increase in
demand for traditional services and, therefore, growth will be driven
primarily by operational efﬁciencies and through new product
initiatives. The exceptions are Justice Services and Aviation, which
will beneﬁt from the sales momentum established in 2002/3 and
from a number of product extension opportunities. 
In return for the two-year pay award agreed in Cash Services, 
we have obtained union and employee support for a number 
of new initiatives which will help to move the cash business
forward. Further developments in the cash management
and ATM outsourcing sectors will also assist with growth
in the coming year.
The custody and escorting contract and the
electronic monitoring contract in Justice Services
are currently being re-bid and we hope to
retain a major share of this growing market.
With most of the UK markets remaining
relatively subdued, there will be a
continuing cost reduction drive in
2003/4 – particularly in the areas of
head ofﬁce and branch overheads.
In addition to delivering ongoing
savings, this will ensure an
increased focus on the areas of
operational effectiveness and
customer service.
Securicor Annual Report and Accounts 2003 13
Cardiff International Airport
In April 2003 Securicor Aviation
won a major new contract to
provide a full range of aviation
security services to Cardiff
International Airport, in what is 
the only signiﬁcant airport security
contract to change hands in the
last two and a half years.
The three-year contract includes a
complete aviation security package
for the airport with hold baggage
screening, passenger screening and
proﬁling, airport security and
aircraft guarding and searches.
Securicor Aviation will work in
partnership with Cardiff International
Airport to continually develop the
airport’s security procedures in
response to the changing security
environment.
“The choice of Securicor for us was
straightforward. The company
measured up to the necessary high
standards required for the provision
of aviation security and this is
something to which their reputation
is testament. However, the expertise
and experience in aviation security 
is married with a culture of ‘customer
service’ which demands equally high
standards. I am confident that
passengers flying from Cardiff
International Airport will benefit
from excellent security which is
undertaken efficiently and with a
smile. I am equally confident that
the partnership between Cardiff
International Airport and Securicor
will be a strong and beneficial one.”
Jon Horne
Managing Director
Cardiff International Airport 14 Securicor Annual Report and Accounts 2003
Against a background of difﬁcult trading conditions in Continental
Europe, underlying proﬁts decreased by 12% (excluding effect 
of Euro introduction in 2002). The region was affected by over-
capacity in the cash services market following the introduction of
the Euro in 2002, increased insurance charges, and a relatively
ﬁxed overhead base within the cash services sector, particularly in
Germany and Ireland. However, good progress was made in the
second half of the period in realigning the cost base and in 
passing on some of the insurance increases to the market.
The integrated security business in Germany remained fairly sluggish
overall, but with encouraging signs that a newly-acquired consulting
and electronic installation capability, using sub-contractors, will
produce growth in Europe’s most challenging market. Our German
cash services business made a loss in the year but should return to
proﬁtability in the ﬁrst half of 2004 following senior management
changes and a price increase programme.
The integrated security business in the Netherlands performed
strongly in a tightening market, supported by growth in
outsourcing with local government, including a contract with the
City of Rotterdam for the provision of security guards on its ﬂeet of
trams. Geldnet, the Dutch cash services business in which Securicor
had for many years held a 25% stake and the full acquisition of
which was completed in May, produced an excellent performance,
with signiﬁcant productivity and operational improvements.
After the previous year’s strong result, the performance in Ireland
was disappointing, a reﬂection of increased competition and slowing
economic growth. There were good results from the Channel
Islands and Isle of Man. Luxembourg produced a satisfactory
result and opened a high security centre for handling new cash
outsourcing business, much of which was secured in the ﬁnal quarter
of the year. Hungary had a year of consolidation and investment,
with the cash services network being expanded nationally.
Our operations in the Middle East had an excellent year, beneﬁting
from the increase in demand for security solutions following the
Iraq war. A number of large new contracts were won in Kuwait.
The overall performance in Africa was satisfactory. There were a
number of senior management changes in the year, including the
appointment of a new regional managing director. The company is
now concentrating on those markets which it believes are key to deve-
lopment within the continent and, consistent with this strategy, withdrew
from Angola and Equatorial Guinea towards the end of the year.
Outlook
The signiﬁcant cost base realignment activity which took place in the
second half of the year delivered a strong last quarter performance.
The relatively ﬂat European markets are showing initial signs of
recovery. The strong growth opportunities forecast in the Middle
East, together with exciting pan-African contract prospects, should
provide an improved year for the EMEA region.
Sales growth will be supported by securing cash management
opportunities in the Netherlands, Germany, Luxembourg and across
Africa. We intend to capitalise on the Netherlands public sector
outsourcing success by expanding these services into other markets
with particular emphasis on electronic tagging, parking control and
police support services.
Initial success in securing contracts in the Netherlands and Germany
has conﬁrmed there is a market for integrated security. We will
continue to build upon this in the coming year.
The region will implement a number of major customer-driven 
IT investments during the year, which will improve service levels,
customer information ﬂows and overall efﬁciency.
EMEA
Regional review (continued)
Regional Managing Director: David Lidbetter 
David joined Securicor in 1988 as a management
trainee. He held various line management roles
within the UK prior to transferring to the
European region in 1996 as the Operations
Director. David was appointed Regional Managing
Director for Europe and Middle East in 1999 and
was appointed to his current role, which includes
Africa, in October 2001.
2003 2002 2001
Turnover £449m £392m £284m
EBITA £18.8m £24.3m £16.8m
Employees 55,620 51,174 48,643
Regional Review
Germany   Netherlands   Africa   South Africa   Luxembourg   Ireland   Key Businesses Cash Services Security Justice Services
  Current Markets Target Markets Zeist Detention Centre – 
The Netherlands
The Zeist Detention Centre was
conceived in 2002 after the Dutch
government decided to take prompt
action to combat an increase in
drug trafﬁcking. Due to the need
for the Detention Centre to be
operational as quickly as possible,
Securicor was asked to provide all
the supervisory staff. 
At the Zeist Detention Centre,
Securicor provided a cost-efﬁcient
solution to accommodate the
sudden demand for extra cell
capacity in a limited time frame.
Now Securicor provides the
supervisory personnel for a total 
of ﬁve detention and deportation
centres in the Netherlands. 
“There have of course been
problems, but up until now we have
been able to resolve these with
Securicor. At the beginning there
was a great deal of protest against
the detention centres from the towns
of Zeist, Soest, Roermond and
Bloemendaal. Opinion is now totally
different. It has been realised that
there have been no incidents and
that we are creating job
opportunities, paying property tax
and building fees and are good
business for local shops.” 
Bart Kroon
Sector Director of the Service for
Judicial Institutions of the Ministry
of Justice
Securicor Annual Report and Accounts 2003 15 2003 2002 2001
Turnover £177m £210m £181m
EBITA £0.6m £0.6m £2.2m
Employees 11,991 12,496 12,742
Regional Review
16 Securicor Annual Report and Accounts 2003
The Americas region continued to be affected by the macro-
economic impact of the 9/11 attacks. This has been reﬂected in
further consolidation in the US security and Canadian Financial
Institution markets, with the downturn in tourism, exacerbated 
by the SARS outbreak, impacting the Canadian and Caribbean
businesses in particular.
Despite these challenges, the cash services business in Canada
continued to make good progress following the price increase
strategy of the prior year and the improvements in overhead and
operational efﬁciencies within the business. We have recently 
re-tendered two signiﬁcant contracts which resulted in us keeping
all of the Toronto Dominion Bank work and remaining primary
provider to the Royal Bank of Canada, albeit with a reduced
allocation of work. 
The new management team has continued to introduce
operational, vehicle crewing and administrative efﬁciency
initiatives to further improve performance in Canada. Selective
investment in new IT systems and armoured car technology is
now also delivering signiﬁcant cost advantages to the business.
It has been another challenging year in the US where we have
completed our exit from the aviation services sector. Without the
contribution from the passenger screening work at US airports,
which was federalised in the post 9/11 legislation, the residual
aviation services provided by the company were unproﬁtable, 
non-core businesses and were therefore discontinued. The
remaining security and transportation businesses have completed
their re-branding and re-structuring programmes and have now
stabilised the revenue losses of the past 12 months whilst enjoying
some major national account wins. 
In justice services, both Securicor EMS and Securicor New
Century increased their contribution, the former delivering 
a signiﬁcant year-on-year improvement in its ﬁrst full-year of
ownership. Meanwhile, Securicor New Century increased the
number of youth custody and treatment facilities in Florida 
from three to six during the year and now has almost 900 
young people in its care in the US.
In the Caribbean and Central America region there were strong
performances from Barbados, Trinidad and the Dominican
Republic but weaker results in Costa Rica and Guyana. Despite 
a good start to the year in Jamaica following the acquisition of a
signiﬁcant competitor, conditions deteriorated in the second half
with the loss of a major cash transportation customer.
Regional review (continued)
Regional Managing Director: David Beaton
David is a graduate civil engineer, who joined
Securicor in 1993 as a projects director after a
spell in management consultancy and an early
career in the British Army. He has held senior
appointments in South Africa, Europe, and the
Middle East and was most recently Managing
Director of Securicor Justice Services. He was
appointed to his current regional role in 2001.
David is a member of the British American
Business Group in the US.
Key Businesses Cash Services Security Justice Services
Americas
US 
Canada   Caribbean     Current Markets Target Markets Securicor Annual Report and Accounts 2003 17
TD Bank Financial Group 
In July, Securicor Canada
announced that it had secured
from the Toronto Dominion Bank
the largest cash logistics contract
awarded in Canadian history. This
contract is worth approximately
CAD$300m over a ﬁve-year period.
Securicor Canada provides a wide
range of ﬁnancial security services
to the bank, including cash-in-
transit, ATM management and ﬁrst-
line maintenance. The new contract
was implemented in November
with high emphasis placed on
communication – both internal 
and external.
The bank’s management team has
acknowledged that the established
relationship between the two
organisations was a key factor in
awarding this exclusive contract 
to Securicor. 
“Securicor’s business is integral to
the quality service we provide to our
customers. Their industry leadership
within the Canadian market has
presented us with an opportunity 
to further enhance our relationship.
The past couple of years have
proven that Securicor continues 
to bring a breadth of expertise and
knowledge to the partnership.”
Debby Young
Vice President, Branch Services 
TD Canada Trust
Outlook
Our focus in the Canadian cash services market will be on exploring
cash centre outsourcing opportunities and improving our share of 
the retail sector to achieve a more balanced revenue mix. Some
provincial acquisition targets have been identiﬁed which should
provide synergy beneﬁts and assist in reinforcing our position 
as the primary national cash services provider in the country. 
Within the US security business there will be a continuing emphasis
on organic revenue growth and streamlining the new organisational
structure to bring about a return to modest proﬁtability in the
coming year. This will be reinforced by an increased investment in
the sales effort and the introduction of improved operational and
administrative IT systems. Some new, niche, security markets are 
also being explored.
Our emphasis in the Caribbean and Central America region will 
be on exploring opportunities for product diversiﬁcation as well as
developing partnership initiatives with key banks on a pan-regional
basis. This will ensure that we are well placed to exploit improving
economic conditions and to continue to deliver strong returns in this
traditionally attractive market for the group. 2003 2002 2001
Turnover £81m £71m £38m
EBITA £6.2m £4.1m £0.9m
Employees 13,135 13,532 –
Regional Review
18 Securicor Annual Report and Accounts 2003
The sustained focus on productivity and service delivery in Asia has
enabled our businesses to perform strongly, despite the difﬁcult
deﬂationary environment and the impact of SARS on the region.
The merger with Safeguards in Malaysia and the acquisition 
of Donar in China have contributed positively to this strong
performance and are increasing our presence and brand exposure
throughout the region.
Hong Kong saw the renovation and upgrading of our existing cash
centre where the new facilities, equipped with extensive automation
and IT systems, will enable us to provide compelling outsourcing
solutions in addition to expanding existing services. 
Competition in Hong Kong remains high but was offset by a number
of signiﬁcant and high proﬁle temporary contracts as well as longer-
term contracts such as those with DHL, FedEx and PCCW Cyberport
in the security sector, MTRC in cash services and Standard Chartered
Bank in ATM managed services. In addition, our ATM managed
services product continues to evolve with research underway into 
new services that will add further value to our traditional offerings. 
In Malaysia, the integration with Safeguards is on track with the 
East Malaysian phase to be completed soon. Cash outsourcing work
continues to roll out countrywide for major banking customers
including Maybank, Bumiputra Commerce Bank and HSBC.
We have made signiﬁcant inroads into the ATM market in China,
through acquisition. Securicor Donar is the largest independent 
ATM maintenance service provider in China, operating in 24 cities
with customer relationships with all the major banks. The business 
is performing well and will beneﬁt from signiﬁcant projected 
growth in ATMs. 
Thailand performed well in spite of intense competition. This was
due in part to a business re-organisation and productivity
improvements which have been put in place. An alarm monitoring
acquisition in Thailand has allowed us to increase our reach in the
electronic security solutions market. Cash transportation competition
remains ﬁerce but will be mitigated by outsourcing opportunities 
and further gains in productivity. 
Taiwan has seen growth in the ATM sector largely on the back of
contracts with CTC Bank for 7-11 and Fubon Bank for McDonald’s. 
We have extended our branch network in the region to provide 
access to national customers.
In Macau, our merger with Great Wall has provided the business 
with a wider product mix and greater potential for growth. The
development of US-style casinos is expected to inject growth into 
the economy and provide further opportunities for the company. 
Despite the economic and political turmoil in Indonesia, we have
grown our business, particularly in electronic security and guarding.
Cash services continue to show productivity improvements and the
building of a second hub will accelerate further growth.
Asia
Regional review (continued)
Regional Managing Director: Ted Devereux
Ted has been actively involved in the Asian
security industry since 1973. Prior to joining
Securicor he co-founded Guardforce Group, 
an integrated security and cash services group
based in Hong Kong and which was acquired 
by Chubb in 1999. Ted joined Securicor in his
current role in 2001. He is Chairman of the
Security Association in Hong Kong and a
member of various industry working groups
within the Asia region.
Key Businesses Cash Services Security Justice Services
  Current Markets Target Markets
Hong Kong   Malaysia   China   Indonesia   Thailand   Taiwan   Macau   Australia   India   Securicor Annual Report and Accounts 2003 19
PCCW (Paciﬁc Century
CyberWorks)
Securicor has provided services to
PCCW since the early 1980s. Good
communications and a clear
understanding of PCCW’s own
strategy have enabled Securicor to
promote and provide solutions to 
a constantly evolving business.
“We selected Securicor from an
open tender for several reasons. One
of the main reasons was the variety
of value-added services which they
can provide. Price is important in
any contract, but it is also important
to review the additional services on
offer from the various contractors,
and on this basis our ultimate
selection was Securicor.”
Ian Dodds
Manager, Operations
PCCW
Outlook
Although the economy is only recovering slowly, there is renewed
conﬁdence across Asia and many countries expect improved growth
in their economies. 
We will be expanding our networks through an increase in the
number of branches in Thailand, Indonesia, Taiwan and Malaysia. 
We are committed to investing in staff development, technology,
vehicles and premises. 
This will position us well to capitalise on outsourcing 
opportunities and to introduce new products and 
solutions. We are actively pursuing acquisition 
opportunities in all services in existing markets 
and reviewing entry into new countries such as 
India and Australia. 
China remains a strong growth area in 
which to expand our services. As part of 
our integrated security offering, we have 
entered the risk consultancy market by 
targeting speciﬁc opportunities arising out 
of the new International Ship and Port 
Facility Security Code. 20 Securicor Annual Report and Accounts 2003
Corporate social responsibility
Securicor is committed to being a socially responsible corporate citizen
Environment
We have pledged a 3% improvement each year over four years on carbon dioxide emissions by 
our businesses in the UK. In the ﬁrst year we declared a total of 259,000 tonnes of carbon dioxide
emissions, an efﬁciency ratio of 13.8 tonnes per employee. In the year to 31 December 2001
emissions had risen to 260,000 tonnes and the efﬁciency ratio showed an apparent deterioration 
to 14.2 tonnes per employee, although we believed that this was due to an under-declaration of 
gas and electricity usage in the ﬁrst year’s total.
Our carbon dioxide emissions for the year to 31 December 2002 fell to 250,000 tonnes, producing
an efﬁciency ratio of 13.4 tonnes per employee, a 5.6% improvement against the previous year and
putting us back on track for our four-year commitment.
The absolute level of carbon dioxide emissions has fallen dramatically since the sale of our remaining
stake in the Distribution business as Securicor’s UK vehicle ﬂeet has reduced by a factor of two-thirds,
to approximately 3,500. An appropriate adjustment will be made to the calculation of emissions for
the year to 31 December 2003.
Nigel Grifﬁths is the director with responsibility for environmental matters.
Health and Safety
We require our operating companies to take due and proper care of any risks to health, safety or
welfare to which the workforce is exposed, although in an international organisation the precise legal
requirements depend upon individual national provisions. For this reason, a global policy statement
has been approved by the board, deﬁning certain minimum standards. In adopting these standards,
we will seek to create a workplace and work systems which enable staff to feel safe and secure and
where management is seen to take a proactive interest in staff welfare.
The director responsible for health and safety matters is Irene Cowden. Responsibility is devolved and
delegated through regional managing directors to the managing director of each group company,
who in turn must nominate a director to report on health and safety. Each company must appoint 
a person qualiﬁed and able to develop the company’s own policies and procedures and to undertake
management and employee training. Risk assessment policies will be developed with special
consideration for vulnerable groups, a process will be introduced for monitoring compliance with
policies and procedures, and accident reporting and analysis will be undertaken at both company
and group level.
Securicor Canada, ofﬁcial
sponsor of Kids Help Phone
Kids Help Phone operate 
24-hour, toll-free, professional
and anonymous phone
counselling, referral and
Internet services to help
troubled and abused
Canadian children, teenagers
and their families. As a Kids
Help Phone sponsor, Securicor
provides both ﬁnancial and
marketing support. It is
helping to raise awareness 
of the charity by displaying 
its logo on 400 Securicor
vehicles across Canada. Securicor Annual Report and Accounts 2003 21
Ethics
The group’s Statement of Business Ethics has been supplied to all managers throughout the group
worldwide. The statement contains 21 sections and includes guidance on, for example, business
practice and entertainment, equal opportunities, use of the internet and whistleblowing. The group
statement is treated as a minimum standard, with all business units required to adopt the statement
as it stands or to incorporate additions to reﬂect the local business or country environment.
Securicor is a member of Transparency International, a non proﬁt-making, independent, 
non-governmental organisation, dedicated to increasing government accountability and to curbing
both national and international corruption.
Employment
The group employs over 100,000 employees in some 50 different countries. Our success depends on
the commitment and competence of our employees and our human resource strategies are therefore
aimed at ensuring that employees are trained to be totally competent in their roles and have the
opportunity to develop to their full potential. Formal career and succession management processes
help support the movement of managers within and between the various group businesses as part 
of their career paths. They also enable us to share knowledge and expertise across the businesses.
We believe it is important for employees to be treated fairly and with dignity and respect. Such
treatment is the basis for an environment which engenders team spirit and a commitment to the
group which in turn helps to maintain good staff retention levels.
Communication and consultation with employees takes place on a range of issues. There are a wide
variety of channels for communication including newsletters, team brieﬁngs and intranets, as well 
as formal representational relationships with staff associations, trades unions and works councils.
Our policy of equal opportunity ensures that decisions relating to the recruitment, development,
promotion and training of individual employees are based solely on job requirements.
Community involvement
The Securicor Charitable Trust receives a substantial annual payment from the group for distribution
predominantly within the UK. The trustees make over 200 donations a year to a range of charities 
in ﬁelds as widespread as disability, medical research, children and youth projects, drug abuse,
homelessness and hospices.
In addition, Securicor companies around the world give direct support to various community projects,
three examples of which are shown on these pages.
Cognisa proud to support
‘Donate a Phone’
Donate a Phone is a national
programme started by the
Wireless Foundation, 
Motorola and the National
Coalition Against Domestic
Violence. Cognisa has donated
more than 200 surplus wireless
phones to the programme
which supports victims of
domestic violence. “With 
a large number of unused
phones on hand, Cognisa was
extremely pleased to be able
to put them to good use 
by participating in the Donate 
a Phone programme” said
Cognisa CEO Keith Badham.
Securicor Justice Services
working in partnership 
with The Prince’s Trust
Securicor is working with The
Prince’s Trust in the Kirklees
area of West Yorkshire to
increase the support available
to ex-offenders to assist them
entering education, training
and employment through
Development Awards.
Development Awards are
grants of between £50 and
£500 which, combined with
advice and support, help 
14-25 year olds access
education, training and work.
Securicor and The Prince’s Trust
are now in the process of
expanding the scheme to the
whole of West Yorkshire’s
Youth Offending Teams. 22 Securicor Annual Report and Accounts 2003
Financial review
For the year ended 30 September 2003
Operating Results
The overall results are commented upon by the Chairman in his statement and operational trading 
is reviewed by Nick Buckles and in the regional reviews.
Acquisitions
Signiﬁcant acquisitions in the year were (1) the extension of our ownership of Geldnet, the Dutch
cash services company, from 25%, accounted for as an associate, to 100%, a wholly-owned
subsidiary, and (2) the merger of our associate in Malaysia with Safeguards Corporation. Other
acquisitions were made in Africa and Asia. Acquisitions are detailed in note 21(a) on page 65 
and their contribution to the turnover and proﬁt of the group during the year is shown in note 1 
on pages 47 and 48.
Disposals
The most signiﬁcant disposal in the year was the sale of our 50% interest in the Securicor Distribution
joint venture. We also completed the exit from the communications sector with the sale of Securicor
Information Systems, sold Securicor Cash Machine and exited from operations in Angola and
Equatorial Guinea. Disposals are detailed in note 21(b) on page 66 and their contribution to the
turnover and proﬁt of the group during the year is shown in note 1 on pages 47 and 48.
Exceptional items
Exceptional items are shown in note 2(b) on page 49. They comprise three main elements: (1) a proﬁt
of £65.7m on the sale of our 50% share of Securicor Distribution, (2) a loss of £30.5m on the sale 
of Securicor Information Systems, and (3) a goodwill impairment charge of £28.6m relating to the 
exit from the US aviation security business. The net cash inﬂow in respect of these exceptional items
was £182.0m.
Accounting standards
FRS17 Retirement beneﬁts was issued by the Accounting Standards Board in November 2000, but 
in November 2002 it was announced that it will not be fully mandatory until 2005. The disclosures
required prior to full implementation are made in note 4(c) on pages 50 to 52 and pension fund
valuation is discussed later in this review.
As a group operating across the world, we welcome moves towards the harmonisation of accounting
standards, including the adoption of International Accounting Standards by the European Union. 
We are required to report in accordance with these standards for the year ending 30 September 2006.  Securicor Annual Report and Accounts 2003 23
Accounting for goodwill
Goodwill arising on acquisitions is capitalised and amortised over its useful economic life which is 
not expected to exceed 20 years. The charge for goodwill amortisation in the accounts for the year 
to 30 September 2003 (excluding joint ventures and associated undertakings) amounted to £12.5m.
Goodwill included in the balance sheet as an intangible asset at 30 September 2003 amounted 
to £219.2m.
Taxation
The taxation charge of £18.3m provided upon proﬁt before exceptional items and goodwill represents
a tax rate of 29%. The disposal of Securicor Information Systems gave rise to a signiﬁcant tax beneﬁt
and £14.4m tax relief has been provided against exceptional items and goodwill amortisation totalling
£13.4m. Potential tax assets amounting to £20.3m have not been recognised as their utilisation is
uncertain and/or long-term.
Cashﬂow
Cash generation in the year to 30 September 2003 was good after a strong prior year. Net cash ﬂow
from operating activities was £96.9m (2002: £127.4m), and free cash ﬂow after capital expenditure
was £57.2m (2002: £70.5m).
Net cash inﬂow from acquisitions and disposals amounted to £156.0m, including £156.9m (net 
of associated costs) on the disposal of the remaining 50% of the Distribution joint venture. £75m 
of these proceeds was returned to shareholders by way of a special dividend.
Net cash inﬂow in the year was £106.9m and the decrease in net debt, after allowing for ﬁnance
leases, borrowings acquired on acquisition of subsidiaries and translation adjustments, was £84.0m.
Financing and treasury activities
The group’s treasury function is responsible for ensuring the availability of adequate and cost-
effective ﬁnance for the group’s operating activities and for managing both exchange rate and
interest rate exposures. It is not permitted to speculate in foreign currency or derivative ﬁnancial
instruments, although it does make limited use of such instruments to hedge exposures on interest
rate or currency ﬂuctuations which arise from the group’s operations.
At the beginning of the year committed or guaranteed credit lines in place totalled £316m. During
the year net repayments of £3m and favourable exchange rate movements of £8m increased the
value of the facilities reported in sterling to £321m. The facilities comprise a £123m term loan from
four major UK banks, repayable in tranches in December 2003, December 2004 and December 2005,
£80m available by way of a revolving credit facility with the same four banks, committed until
December 2005, and a further £118m repayable in December 2003 and throughout 2004. 24 Securicor Annual Report and Accounts 2003
Financial review (continued)
At 30 September 2003 net debt of £114.5m represented a gearing of 42%. The group has substantial
capacity to ﬁnance growth, which will be enhanced by future cash generation from the group’s focus
upon security activities.
Interest rates
The group’s deposits and borrowings, including those negotiated after 30 September 2003, 
are at variable rates of interest linked to LIBOR.
Foreign currency
The group has many foreign subsidiaries and associates denominated in many different currencies.
Group policy is to match signiﬁcant net investments denominated in foreign currencies with
borrowings in the same currencies. The translation exposure arising from revenues and expenses 
of foreign businesses is not hedged. Signiﬁcant transactions denominated in a foreign currency may
be hedged using forward contracts. The group currently has no such contracts outstanding.
Dividends
As referred to above, the group paid a special dividend of 12.0p per share, totalling £75m, from 
the proceeds of the sale of our 50% share of Securicor Distribution.
The directors recommend a ﬁnal dividend of 1.62p per share which, taken with the interim dividend 
of 0.78p per share, makes a total ordinary dividend of 2.40p per share for the year ended 
30 September 2003. This represents an increase of 13.7% over the previous year’s dividend per share.
In proposing this ﬁnal dividend, the directors considered both the appropriate level of dividend
cover and the future strategy and prospective earnings of the group. The company intends to follow
a progressive dividend policy whilst maintaining a long-term dividend cover in the range 3.5 to 4 
on normalised proﬁt after tax excluding goodwill amortisation, compared to 3.4 in the current year.
Corporate governance
The group’s policies regarding risk management and corporate governance are set out in the
corporate governance report on pages 32 and 33.
Pensions
The full triennial actuarial assessment of the group’s main UK ﬁnal salary pension scheme (which is
closed to most new entrants) was carried out as at 5 April 2003 and updated to 30 September 2003.  Securicor Annual Report and Accounts 2003 25
The assessment revealed the scheme’s funding levels in respect of past service under the different
regulatory measures to be as follows:
Minimum Funding Requirement
The funding level was approximately 110%.
SSAP24
There was a shortfall of £21m (£15m after tax). The improved performance of the equity markets
since the end of September has resulted in this shortfall being completely eradicated.
FRS17
This valuation indicated a shortfall of £135m (£95m after tax). The value of the fund had increased
by approximately £40m by 31 December 2003.
There has been a degree of recovery in equity values in the year to 30 September 2003, but the
funding valuations must also take account of increasing longevity expectations. We continue to
believe that, over the long-term, improved investment returns should eliminate the deﬁcit in the
scheme in respect of past service liabilities. However, in recognition of the currently reported deﬁcits,
an additional cash contribution of £5m (£3.5m after tax) is being made to the scheme in the year
commencing 1 October 2003. This will not affect the proﬁt and loss account. As regards future
service beneﬁts, contribution rates have been increased, following actuarial advice, from 12% to
14% as from 1 October 2003, which will increase the cost of the scheme by approximately £1.5m 
a year before tax.
Going concern
The directors are conﬁdent that, after making enquiries and on the basis of current ﬁnancial
projections and available facilities, they have a reasonable expectation that the group has adequate
resources to continue in operational existence for the foreseeable future. For this reason they
continue to adopt the going concern basis in preparing the ﬁnancial statements.
Trevor Dighton 26 Securicor Annual Report and Accounts 2003
Board of directors
Lord Sharman (60) 
Chairman
Colin was appointed to the board of Securicor plc in 2003. An accountant, he spent
33 years with KPMG, many of which were in various senior roles within Continental
Europe. He retired from KPMG as Chairman of its worldwide operations in 1999. He
is non-executive Chairman of Aegis Group plc, a non-executive director of BG Group
plc and Reed Elsevier plc and a member of the supervisory board of ABN Amro
Holding N.V. He was created a Life Peer in 1999.
Nick Buckles (43)
Chief Executive
Nick joined the group in 1985 as a projects accountant. In 1996 he was appointed
Managing Director of Securicor Cash Services and he became Chief Executive of the
Security division in October 1999. He was appointed to the board in May 2000 and
became Chief Executive in January 2002.
Trevor Dighton (54)
Finance Director
Trevor joined the group in 1995 after a previous career which included posts in both
the accountancy profession and in industry, including ﬁve years in general management
in Papua New Guinea, three years in Zambia and seven years with BET plc. He was
appointed Finance Director of the Security division in 1997 and Deputy Group
Finance Director in October, 2001. He was appointed to the board in June 2002.
Nigel Grifﬁths LLB (57)
Company Secretary and Legal Director
Nigel joined the group’s French company in 1973. A solicitor, he was
appointed Company Secretary of Securicor Group plc and Security Services plc
in 1989 and to the boards of those companies in March 1990. Securicor Annual Report and Accounts 2003 27
Irene Cowden (50)
Human Resources Director
Irene joined the group in 1977 and has held senior management appointments
specialising in employee relations, compensation and beneﬁts, and organisation
development. She has been a director at both divisional and company level and
was appointed to the board in August 2002.
Roger Wiggs (64)
Non-Executive Director
A solicitor, Roger became Director for Overseas Operations of Securicor Limited in
1974. In 1977 he was appointed to the boards of Securicor Group plc and Security
Services plc, becoming Group Chief Executive in 1988, a position from which he
retired at the end of 2001. He is a non-executive director of the Crown Agents
Foundation.
Jonathan Kitchen (64)
Non-Executive Director
Jonathan was appointed to the board in 1998. After previous positions within
Midland Bank, Phillips & Drew and Samuel Montagu, he joined Lazard Brothers in
1979, being appointed director in 1981 with executive responsibilities within the
corporate ﬁnance division. He retired from Lazards in January 1998. He is a 
non-executive director of The 600 Group plc.
Lord Condon QPM (56)
Non-Executive Director
Paul was appointed to the board in October 2000. He joined the Metropolitan
Police in 1967 and, after holding various senior appointments in the Police Force,
including Chief Constable of Kent, served as Commissioner of the Metropolitan
Police between 1993 and January 2000. He was created a Life Peer in 2001.
The directors on the boards of Securicor Group plc and Security Services plc became, at the time 
of a group reconstruction in 1996, directors of Securicor plc. 28 Securicor Annual Report and Accounts 2003
Contents
Report of the directors 29
Corporate governance report 32
Remuneration report 34
Directors’ responsibilities 39
Independent auditor’s report to the 
members of Securicor plc 40
Consolidated proﬁt and loss account 41
Consolidated balance sheet 42
Consolidated cash ﬂow statement 43
Statement of total recognised gains and losses 44
Note of historical cost proﬁts and losses 44
Reconciliation of movement in equity shareholders’ funds 44
Statement of accounting policies 45
Notes to the consolidated accounts 47
Parent company balance sheet 71
Notes to the parent company balance sheet 72
Group ﬁnancial record 74
Notice of meeting 75
Financial calendar and corporate addresses 76 Securicor Annual Report and Accounts 2003 29
The directors have pleasure in presenting their Annual Report together with the audited accounts of Securicor plc and the consolidated accounts
of that company and its subsidiaries, associated undertakings and joint ventures (“the group”) for the year ended 30 September 2003. 
1 Principal activities of the group
Securicor plc is a parent company with subsidiaries, associated undertakings and joint ventures.
The principal activities of the group, carried out both in the United Kingdom and internationally, include the management and transportation
of cash and valuables, cash processing, provision of security guards and patrols, and justice services. 
2 Group results
The consolidated proﬁt for the year and the appropriation thereof are shown in the consolidated proﬁt and loss account on page 41.
Details of major business activities during the year, future developments and prospects of the group are contained on pages 2 to 25.
3 Dividends
The directors have declared or now propose the following net dividends for the year
– Special dividend of 12p per share paid on 18 July 2003.
– Interim dividend of 0.78p per share paid on 30 September 2003.
– Final dividend of 1.62p per share payable on 5 April 2004.
4 Business acquisitions, disposals and developments
In December 2002 Securicor International merged its existing Malaysian business with the security business of Safeguards Corporation, 
the leading company in the Malaysian security market. Securicor has a 49% interest in the combined business.
In December 2002 Securicor Wireless Technology was sold.
In February 2003 Argenbright Security completed its withdrawal from the US aviation services market.
In April 2003 Securicor International acquired 70% of Inco Holdings, the leading provider of security services in Botswana.
In April 2003 Securicor Macau merged with Great Wall – Property Management and Security Services, with Securicor owning 51% 
of the merged entity.
In May 2003 Securicor International acquired the remaining 75% share capital of Geldnet Holding, a Netherlands cash services business, 
bringing Securicor’s ownership to 100%.
In May 2003 Securicor Information Systems was sold.
In June 2003 Securicor Cash Machine was sold.
In July 2003 the remaining 50% interest in Securicor’s Distribution division was sold to Deutsche Post.
In August 2003 Securicor International acquired a 51% interest in the ATM maintenance services business of Shenzhen Donar, the market
leader in the provision of such services in China.
Report of the directors
For the year ended 30 September 2003 30 Securicor Annual Report and Accounts 2003
Report of the directors (continued)
5 Capital
The authorised and issued share capital of Securicor plc at 30 September 2003 is set out on page 63 (note 19 to the accounts).
Resolution 7 set out in the Notice of Meeting on page 75 is a special resolution seeking a renewal of the authority to make market purchases 
of the company’s shares up to an aggregate value of 10% of the number of shares in issue. The current authority expires at the next Annual
General Meeting. The directors have no present intention of utilising this authority but believe it appropriate to maintain this ﬂexibility 
in accordance with common business practice.
Information concerning the company’s shares held under option is set out on page 64 (note 19 to the accounts).
6 Research and development expenditure
Research in connection with the development of new services and products and the improvement of those currently provided by the group is
carried out continuously. Research expenditure, which is written off during the year in which it is incurred, amounted to £0.2m (2002: £2.1m).
Development expenditure is dealt with in accordance with accounting policy 7 on page 45.
7 Payment of suppliers
It is the company’s and the group’s policy to pay suppliers in accordance with the payment terms negotiated with them. Thus, prompt payment
is normally made to those suppliers meeting their obligations. The company and the group do not follow any formal code or standard on
payment practice.
During the year to 30 September 2003 Securicor plc, the parent company, did not have any trade creditors.
At 30 September 2003 the consolidated trade creditors of the group represented 31 days (2002: 33 days) of annual purchases.
8 Employee involvement
The group keeps employees informed about current activities, progress and general matters of interest by various methods including:
(a) regular regional and branch meetings;
(b) newsletters, bulletins and similar items produced by various individual companies;
(c) the group web-site and intranet.
The group’s policy and practice is to encourage the recruitment and subsequent training, career development and promotion of disabled
persons according to their aptitudes and abilities, and the retention and retraining of employees who become disabled.
9 Political and charitable contributions
The group remains committed to the support of charities, the community, job creation and training, local development, the arts, sport and
music. Charitable contributions by the group during the year amounted to £121,000 (2002: £100,000).
There were no political contributions.
10 Substantial holdings
The directors have been notiﬁed of the following substantial shareholdings at 20 January 2004 in the ordinary capital of Securicor plc:
Legal & General 16,869,994 (3.2%)
Standard Life Investments 16,473,528 (3.1%)
Barclays plc 16,357,789 (3.1%) Securicor Annual Report and Accounts 2003 31
11 Auditors
A resolution to re-appoint Baker Tilly, chartered accountants, as auditors to the company and for their remuneration to be ﬁxed by the directors
will be submitted to the Annual General Meeting.
12 Directors
The directors, biographical details of whom are contained on pages 26 and 27, held ofﬁce throughout the year, with the exception of Lord
Sharman whose appointment took effect in May 2003. 
Professor Norton retired from the board in December 2002 and Sir Neil Macfarlane in May 2003.
The directors retiring by rotation are Messrs Grifﬁths and Kitchen who, being eligible, offer themselves for re-election. Lord Sharman retires 
in accordance with the Articles of Association and, being eligible, offers himself for election. The board believes that the ﬁnancial, commercial
and international experience possessed by Lord Sharman is of great value to the company.
The contracts of service of the executive directors are terminable at 12 months’ notice. None of the non-executive directors has a contract 
of service.
Details of directors’ interests in the share capital of Securicor plc and of the directors’ remuneration are set out on pages 34 to 39.
None of the directors had a material interest in any contract signiﬁcant to the business of the group during the ﬁnancial year.
Sutton Park House By order of the board
15 Carshalton Road Nigel Grifﬁths
Sutton Secretary
Surrey SM1 4LD 4 February 2004
Report of the directors (continued) 32 Securicor Annual Report and Accounts 2003
Corporate governance report
The board’s report on the company’s corporate governance performance for the year ending 30 September 2003 is based on the Combined
Code as formulated by the Committee on Corporate Governance in 1998 (“the Code”). The Code on Corporate Governance published in July
2003 (“the Revised Code”) is only mandatory for reporting years beginning on or after 1 November 2003.
The Code requires companies to disclose how they apply the principles in the Code, and to conﬁrm that they comply with the Code provisions
or, where they do not comply, to provide an explanation.
(a) Application of Code principles
The board comprises the non-executive chairman (whom the board considers to be independent), the chief executive, three other executive
directors and three other non-executive directors (of whom the board considers Lord Condon and Mr Kitchen to be independent). The senior
independent director is Mr Kitchen.
All directors submit themselves for re-election at least every three years.
Membership of the three board committees is as follows:
Audit Committee
Jonathan Kitchen (Chairman)
Lord Condon
Remuneration Committee
Lord Condon (Chairman)
Jonathan Kitchen
Nomination Committee
Lord Sharman (Chairman)
Jonathan Kitchen 
Lord Condon
Nick Buckles
The chairmen of the three committees are available to answer questions at the Annual General Meeting.
The board met on 11 occasions during the year ending 30 September 2003. All directors were present at all meetings. At each meeting, 
the board receives reports from the chief executive, the ﬁnance director, the HR director and the company secretary. The board also receives 
an investor relations report which includes a summary of comments received from major shareholders since the previous board meeting.
There is a detailed schedule of matters reserved to the board which are set out under ﬁve separate categories: (1) Board and management; 
(2) Operations; (3) Finance; (4) Business control; and (5) Secretarial. By way of example, board approval is required for (a) acquisitions,
disposals, investments and capital projects exceeding £1.25m; (b) any changes to the group’s business strategy; and (c) the annual trading,
capital expenditure and cash-ﬂow budgets.
In the year under review, the Audit Committee met three times, the Remuneration Committee ﬁve times and the Nomination Committee three
times. Lord Condon and Mr Kitchen attended all meetings of these committees and Mr Buckles attended the meetings of the Nomination
Committee. Lord Sharman did not join the Nomination Committee until after the end of the year under review, assuming its chairmanship 
in November. Sir Neil Macfarlane was a member of and attended the meetings of the Remuneration Committee prior to his retirement in 
May 2003. His successor as chairman, Lord Sharman, who is not a member of the Remuneration Committee, is also non-executive chairman 
of Aegis Group plc and a non-executive director of BG Group plc and Reed Elsevier plc.
The performance of each of the executive directors is evaluated by the chief executive through an annual career and development review
process, which includes an assessment of whether those directors have achieved speciﬁc business objectives set at the beginning of the year. 
As yet, there is no formal process in place for evaluating the performance of the chief executive himself, of the non-executive directors or 
of the board committees. It is intended that such a process be established as soon as possible.
The chief executive and the ﬁnance director hold regular meetings with individual institutional shareholders to discuss the group’s strategy 
and ﬁnancial performance, although price sensitive information is never divulged at these meetings. All the directors attend the Annual General
Meeting and are available to answer questions, most of which in the past have been raised by private investors present at the meeting. Securicor Annual Report and Accounts 2003 33
The Nomination Committee appointed an external search consultancy to identify suitable candidates to succeed Sir Neil Macfarlane as chairman.
It was through this consultancy that Lord Sharman was short-listed, with a subsequent recommendation for his appointment being approved by
the full board. The Nomination Committee has retained an external search consultancy to ﬁnd two independent non-executive directors to join
the board. The board intends to use external search consultants for all future appointments of a chairman or a non-executive director.
Audit Committee meetings are also attended by representatives of the group’s auditors, the ﬁnance director, the director of compliance and the
company secretary. The committee considers the group’s annual and interim ﬁnancial statements and any questions raised by the auditors on
the ﬁnancial statements and ﬁnancial systems. It also considers, amongst other matters, risk management procedures and internal controls and 
it requires the auditors, who perform certain non-audit work for the company, to provide a Statement of Independence to the committee at the
year-end, setting out the auditors’ internal procedures for avoiding conﬂicts. The Audit Committee also meets with the group’s auditors in the
absence of management.
(b) Compliance with provisions of the Code
The company complied throughout the year ended 30 September 2003 with the provisions set out in Section 1 of the Code save that the Audit
Committee consisted of only two non-executive directors. It is intended that one of the two new non-executive directors currently being recruited
by the company would serve on this committee.
Currently, the company does not comply with some of the provisions of the Revised Code. However, the company intends to move progressively
towards compliance with all such provisions.
(c) Risk management and internal control
The directors acknowledge their responsibility for the group’s system of internal control and for reviewing its effectiveness. The system is
designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute
assurance against material misstatement or loss.
The risks associated with the group’s activities are regularly reviewed by the board, which considers major risks and evaluates their impact 
on the group. Policies and procedures, which are reviewed and monitored by the director of compliance, are in place to deal with any matters
which may be considered by the board to present signiﬁcant exposure.
Business risks throughout the group are continuously identiﬁed, evaluated and managed, a process which has been in place for the year ended
30 September 2003 and up to the date of this report. The process, which is regularly reviewed by the board and accords with the internal
control guidance for directors on the Code, is carried out under the supervision of regional risk management committees, which report to the
Group Risk Management Committee. This latter committee, which meets quarterly and which reports to the Audit Committee, includes both 
the chief executive and the ﬁnance director.
The Audit Committee undertakes a high level review of risk management and internal control. Both the regional risk management committees
and the Group Risk Management Committee receive internal audit reports and regular reports on risks. They monitor the actions taken to
reduce risks.
Risk review exercises are undertaken twice a year or following material events, at company, regional and group level, and updated risk proﬁles
are prepared. These exercises have been undertaken as part of the integration process for all major new acquisitions.
A common risk management framework has been used throughout the group to produce a summary of the risks which may impact on the
achievement of business objectives. Each signiﬁcant risk is documented, showing an overview of the risk, how the risk is managed, and any
improvement actions. The risk proﬁles are also used to ensure that internal audit reviews of the adequacy, application and effectiveness of risk
management and internal controls are targeted on the key risks.
The internal control system includes clearly deﬁned reporting lines and authorisation procedures, a comprehensive budgeting and monthly
reporting system, and written policies and procedures. In addition to a wide range of internal audit reports, management also receive assurance
from other sources including security inspections, third party reviews, company ﬁnancial control reviews, external audit reports, management
reports and control self-assessment returns. 
The board has reviewed the group’s risk management and internal control system for the year to 30 September 2003 by considering reports
from both the Audit Committee and the Group Risk Management Committee and has taken account of events since 30 September 2003.
Nigel Grifﬁths
Secretary
4 February 2004
Corporate governance report (continued) 34 Securicor Annual Report and Accounts 2003
Remuneration report
This report sets out the company’s remuneration policies and provides details of the remuneration of each of the directors. The report will 
be put to the Annual General Meeting for approval by the shareholders.
The Remuneration Committee met ﬁve times during the period under review. The members of the committee are Lord Condon (Chairman) 
and Jonathan Kitchen. Sir Neil Macfarlane was a member until his retirement from the board in May 2003.
Advice on executive pay was provided to the committee by Monks Partnership, compensation consultants, who were appointed by the
committee. Advice on share-based incentive schemes was provided to the committee by New Bridge Street Consultants who for a number of
years have advised the company on such matters, but who do not have any formal appointment. Neither Monks Partnership nor New Bridge
Street Consultants provided any other services to the company during the period under review.
Nick Buckles, the chief executive, provided guidance to the committee on remuneration packages for senior executives within the group. 
Further guidance was received from the group HR department.
The group’s remuneration policy is to ensure that individual rewards and incentives are directly aligned with the performance of the group 
and the interests of its shareholders and that packages are provided which attract, retain and motivate directors and other senior managers 
to perform at the highest levels. This policy will be reviewed each year to ensure that it reﬂects changing circumstances. The various components 
of the directors’ remuneration are:
(a) Basic salary and beneﬁts
The salaries of the executive directors and other senior executives are reviewed at 1 October each year, having regard to responsibility, individual
performance and salary and other market information supplied by Monks Partnership. Beneﬁts include the provision of company cars, health
insurance and life assurance.
(b) Performance-related annual bonus scheme
The executive directors participate in a performance-related bonus scheme, payments under which are dependent on the attainment of deﬁned
proﬁt targets of the group and which were for the year under review and are for the current year subject to a maximum of 50% of base salary.
No bonus payments were made for the year under review.
The target for the current year is based on the achievement of a speciﬁed proﬁt before tax target for the group, excluding the effect of any
exceptional items, discontinued operations and goodwill amortisation. If any signiﬁcant unbudgeted changes take place during the year, for
example acquisitions or disposals, the proﬁt target will be adjusted accordingly. Achievement of the proﬁt target will result in a payment of
25% of salary, increasing on a phased basis up to 50% for an over-target performance up to a speciﬁed ﬁgure. A payment between 18.75%
and 25% of salary will be made for achieving a proﬁt ﬁgure below but within 5% of the target. The payment of a bonus to an individual
director may be reduced by up to 50% if that director achieves less than 80% of a series of speciﬁc business objectives agreed at the 
beginning of the ﬁnancial year. 
Bonus payments do not form part of salary for pension purposes.
(c) Executive Share Option Scheme 
The executive directors participate in the Executive Share Option Scheme (“the original scheme”), having received grants of options prior to the
scheme being amended (“the amended scheme”) following shareholder approval at the Annual General Meeting in March 2003. No grants of
options have as yet been made to the executive directors under the amended scheme.
The original scheme, which provides for the selective grant of options to Securicor executives, is in two parts: an Inland Revenue approved part
and an unapproved part. Options were granted up to a maximum aggregate market value at the date of grant of four times the participant’s
annual remuneration. No options were granted at a discounted price. The exercise of options is not normally permitted unless and until the
group’s earnings per share over a rolling three-year period have grown by at least 3% per annum above the growth in the retail prices 
index (“RPI”).
Under the amended scheme, the market value of options granted to an executive in any one ﬁnancial year is limited to twice basic salary, 
save that where an executive also receives an award under the Performance Share Plan in the same ﬁnancial year the limit is normally reduced 
to one times salary. The exercise of options is not normally permitted unless and until the group’s earnings per share over a ﬁxed three-year
period, subject to one retest only after four years, have grown by at least 4% per annum above the growth in the RPI. At EPS growth of 4%
above RPI, the portion of the option grant up to a value of 0.5 times salary may be exercised, increasing on a straight line basis up to one
times salary at 7% growth above RPI and up to two times salary at 12% growth. Securicor Annual Report and Accounts 2003 35
(d) Sharesave Scheme
This savings-related scheme, in which the executive directors participate, is open to all United Kingdom, Channel Islands and Isle of Man
employees of the group with at least 12 months’ service. Eligible employees may save up to £250 per month under a three-year sharesave
contract and then apply the savings in the acquisition of new shares in the company. The option price is set at 80% of the market value at 
the date of grant.
Under both the Executive Share Option Scheme and the Sharesave Scheme, options are not normally exercisable until the third anniversary 
of the date of grant. The limit on the number of ordinary shares which may be issued under both schemes until 30 April 2006 is 8.4% of 
the issued ordinary share capital of Securicor plc, as approved by shareholders at an extraordinary general meeting of the company on 
29 April 2003.
(e) Performance Share Plan
The Performance Share Plan was introduced in March 2003. Under the plan, the executive directors and certain other senior executives receive
conditional allocations of the company’s shares which are released to them only on the achievement of demanding performance targets.
The maximum annual award of shares under the plan is one times basic salary, save that where executives also participate in the Executive Share
Option Scheme in the same ﬁnancial year, awards will not normally exceed half of basic salary. The extent to which allocations of shares under
the plan vest will be determined by the company’s normalised earnings per share growth relative to the RPI over a single three-year period.
There is no provision for retesting. The following targets apply to awards granted in the year under review:
Average annual growth in EPS Proportion of allocation vesting
RPI + 5% per annum (15% over three years) 35%
RPI + 12% per annum (36% over three years) 100%
RPI + 5-12% per annum Pro rata between 35% and 100%
Less than RPI + 5% per annum Nil
Unless the committee determines that there are exceptional circumstances, the performance conditions will continue to apply (pro rata to the
time the allocation has been held) if an employee leaves the group, or in the event of a change of control or restructuring of the company. 
The committee believes that earnings per share growth is the most appropriate performance measure for both the Executive Share Option
Scheme and the Performance Share Plan, as it provides a transparent method of assessing the company’s performance. The company calculates
whether the performance targets have been achieved by reference to the company’s audited accounts which provide an accessible and objective
measure of the company’s earnings per share. 
The committee also believes that continued shareholding by senior executives will strengthen the alignment of their interests with shareholders’
interests. Accordingly, executive directors of the company will be expected to retain shares to the value of 30% of the after-tax gains made 
on the vesting of performance share plan awards and the exercise of share options until they have built up a shareholding equivalent to one
times basic salary.
A signiﬁcant proportion of total remuneration is related to performance, through participation in both short-term and long-term incentive schemes. 
The service contracts of the executive directors are dated as follows: 
Nick Buckles 25 May 2001
Irene Cowden 19 August 2002
Trevor Dighton 30 May 2002
Nigel Grifﬁths 26 September 2000
All are terminable by the company on 12 months’ notice and by the directors on six months’ notice. There are no provisions for compensation
payable upon early termination, but the company reserves the right to pay salary in lieu of notice. It is the group’s policy that it should be able
to terminate service contracts of all senior executives on no more than 12 months’ notice and that payments for termination of contract are
restricted to the value of salary and other contractual entitlements for the notice period. The non-executive directors do not have service contracts
but letters of appointment which provide for ﬁxed three-year terms. All directors are required to stand for re-election by the shareholders at
least once every three years.
Remuneration report (continued) 36 Securicor Annual Report and Accounts 2003
Remuneration report (continued)
The performance graph below shows the total cumulative shareholder return of the company since 1 October 1998, based on a hypothetical
shareholding worth £100, compared with the return achieved by the support services sector of the Financial Times All Share Index over the last
ﬁve years. As the company is a constituent of the support services sector, the committee believes that this is the appropriate index against which
to base a comparison.
THE FOLLOWING INFORMATION HAS BEEN AUDITED
Base salaries and bonuses
Salary Performance 2003 2002
and fees Beneﬁts related bonus Total Total
£££ £ £
Chairman (non-executive)
Sir Neil Macfarlane (retired 2 May 2003) 116,133 – – 116,133 134,000
Lord Sharman (appointed 2 May 2003) 58,066 – – 58,066 –
Executive directors
Nick Buckles 401,070 24,136 – 425,206 573,880
Irene Cowden (appointed 1 August 2002) 190,789 15,057 – 205,846 49,892
Trevor Dighton (appointed 1 June 2002) 261,562 21,470 – 283,032 154,496
Nigel Grifﬁths 265,645 14,900 – 280,545 397,580
Christopher Shirtcliffe (retired 31 May 2002) – – – – 317,390
Other non-executive directors
Sir James Birrell (retired 30 September 2002) – – – – 34,000
Lord Condon 35,360 – – 35,360 34,000
Jonathan Kitchen 35,360 – – 35,360 34,000
Jim Norton (retired 31 December 2002) 8,840 – – 8,840 39,700
Roger Wiggs (non-executive since 1 January 2002) 132,706 21,869 – 154,575 995,266
0
50
100
150
200
30.09.99 30.09.98 30.09.00 30.09.01 30.09.02 30.09.03
Securicor – total return
FTSE Support Services – total return       
Performance graph
£ Securicor Annual Report and Accounts 2003 37
Directors’ Share Options
Granted Outstanding Option 
Option At 30.09.02 during year at 30.09.03 price (p)
Nick Buckles A 72,901 72,901 107.98
B 95,000 95,000 164.00
C 75,000 75,000 133.75
D 9,053 9,053 107.00
E 55,000 55,000 153.00
F 700,000 700,000 108.00
G 14,453 14,453 64.00
Irene Cowden B 50,000 50,000 164.00
C 30,000 30,000 133.75
D 9,053 9,053 107.00
E 20,000 20,000 153.00
F 250,000 250,000 108.00
G 14,453 14,453 64.00
Trevor Dighton B 55,000 55,000 164.00
C 40,000 40,000 133.75
D 9,053 9,053 107.00
E 30,000 30,000 153.00
F 350,000 350,000 108.00
G 14,453 14,453 64.00
Nigel Grifﬁths B 135,000 135,000 164.00
C 80,000 80,000 133.75
D 9,053 9,053 107.00
E 55,000 55,000 153.00
F 460,000 460,000 108.00
G 14,453 14,453 64.00
Roger Wiggs B 240,000 240,000 164.00
C 240,000 240,000 133.75
D 9,053 9,053 107.00
Option A = Executive Share Option Scheme, normally exercisable between June 2001 and June 2008.
Option B = Executive Share Option Scheme, normally exercisable between December 2002 and December 2009.
Option C = Executive Share Option Scheme, normally exercisable between June 2003 and June 2010.
Option D = Sharesave Scheme, normally exercisable between October 2003 and March 2004.
Option E = Executive Share Option Scheme, normally exercisable between December 2003 and December 2010.
Option F = Executive Share Option Scheme, normally exercisable between December 2004 and December 2011.
Option G = Sharesave Scheme, normally exercisable between October 2006 and March 2007.
None of the directors exercised options under these schemes during the year.
The market price of the ordinary shares at 30 September 2002 was 101p and at 30 September 2003 it was 83.5p.
The highest and lowest market prices of an ordinary share during the year to 30 September 2003 were 109p and 69p respectively.
Executive share options may normally only be exercised in accordance with the performance criteria described under (c) Executive Share Option
Scheme on page 34.
Remuneration report (continued) 38 Securicor Annual Report and Accounts 2003
Remuneration report (continued)
Directors’ interests in Performance Share Plan
Shares
conditionally Market price
awarded Date of at date of
At 30.09.02 during year award award (p) Vesting date At 30.09.03
Nick Buckles – 483,300 26.03.03 82.75 26.03.06 483,300
Irene Cowden – 229,600 26.03.03 82.75 26.03.06 229,600
Trevor Dighton – 302,100 26.03.03 82.75 26.03.06 302,100
Nigel Grifﬁths – 320,200 26.03.03 82.75 26.03.06 320,200
The conditions subject to which allocations of shares vest under this plan are described under (e) Performance Share Plan on page 35.
Directors’ interests in shares of Securicor plc 
(not including shares under option)
At 30.09.03 At 30.09.02
Nick Buckles 100,000 76,594
Lord Condon 2,000 1,000
Irene Cowden 175,000 168,309
Trevor Dighton 100,000 84,244
Nigel Grifﬁths 250,000 253,253
Jonathan Kitchen 12,750 6,000
Lord Sharman 8,500 –
Roger Wiggs 431,124 507,206
All interests shown above are beneﬁcial. 
No changes in these holdings have taken place since 30 September 2003.
Directors’ pension entitlements
The executive directors participate in the non-contributory category of the group’s deﬁned beneﬁt pension scheme. Roger Wiggs, who was
formerly an executive director, receives a pension from the scheme.
The normal retirement age for the category is 60 and members achieve the maximum of 
2
⁄3 of their ﬁnal pensionable salary at normal retirement
age after 20 years’ service (ten years’ service for those who joined the company prior to 17 March 1987). The pension of 
2
⁄3 accrues uniformly
between the date of joining the scheme and normal retirement age. An actuarial reduction is applied to pensions payable before normal retirement
age and an increase is applied where retirement is deferred beyond normal retirement age.
For death before retirement a capital sum equal to four times pensionable salary is payable, together with a spouse’s pension of 50% of the
member’s prospective pension at the age of 60 plus a return of any contributions paid prior to the admission to the non-contributory category.
For death in retirement, a spouse’s pension of 50% of the member’s pre-commutation pension is payable. Post retirement pension increases are
payable at the rate of 5% per annum in respect of pension earned up to 31 December 1994 and in line with the increase in the Retail Prices
Index subject to a maximum of 5% in respect of pension earned after that date. Securicor Annual Report and Accounts 2003 39
Pension entitlements and corresponding transfer values increased as follows during the year (all ﬁgures are in £’000s).
Gross Increase Total Value of Total Transfer value Transfer value
increase in accrued accrued net increase change in of accrued of accrued
in accrued pension net pension at in accrual transfer value pension pension
pension of inﬂation 30.09.03 over period during period at 30.09.03 at 01.10.02
(1) (2) (3) (4) (5) (6) (7)
Nick Buckles 12 9 134 68 174 1,185 1,011
Irene Cowden 27 25 91 272 363 1,206 843
Trevor Dighton 4 3 24 40 65 310 245
Nigel Grifﬁths 12 8 156 115 301 2,772 2,471
Roger Wiggs N/A N/A 277 see below (vi) see below (vi) 5,612 5,679
Notes:
(i) Pension accruals shown are the amounts which would be paid annually on retirement based on service to the end of the year.
(ii) Transfer values have been calculated in accordance with version 8.1 of guidance note GN11 issued by the actuarial profession.
(iii) The value of net increase (4) represents the incremental value to the director of his or her service during the year, calculated on 
the assumption that service terminated at the year-end. It is based on the increase in accrued pension (2).
(iv) The change in transfer value (5) includes the effect of ﬂuctuations in such value due to factors beyond the control of the company 
and the directors, such as stock market movements.
(v) Voluntary contributions paid by directors and resulting beneﬁts are not shown.
(vi) The total accrued pension (3) shown for Roger Wiggs is after reduction for the pension which was commuted for cash in 2001. 
Mr Wiggs has been granted no discretionary or augmented beneﬁts during the year and hence there is no increase in his accrued 
pension net of the standard scheme pension increases.
Lord Condon
Chairman of the Remuneration Committee 
4 February 2004
Directors’ responsibilities
The following statement, which should be read in conjunction with the report of the auditors set out on page 40, is made with a view 
to distinguishing for shareholders the respective responsibilities of the directors and of the auditors in relation to the ﬁnancial statements.
Company law requires the directors to prepare ﬁnancial statements for each ﬁnancial year which give a true and fair view of the state of affairs
of the company and of the group and of the proﬁt or loss of the group for that year. In preparing those ﬁnancial statements, the directors are
required to:
– select suitable accounting policies and then apply them consistently;
– make judgements and estimates that are reasonable and prudent;
– state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the
ﬁnancial statements;
– prepare the ﬁnancial statements on the going concern basis unless it is inappropriate to presume that the company and the group will
continue in business for the foreseeable future.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy the ﬁnancial position of the
company and of the group and enable them to ensure that the ﬁnancial statements comply with the requirements of the Companies Act 1985.
They are also responsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
The directors are also responsible for the maintenance and integrity of the Securicor plc web-site. Legislation in the United Kingdom governing
the preparation and dissemination of ﬁnancial statements may differ from legislation in other jurisdictions.
Remuneration report (continued) 40 Securicor Annual Report and Accounts 2003
We have audited the ﬁnancial statements on pages 41 to 73. We have also audited the disclosures required by Part 3 of Schedule 7A to the
Companies Act 1985 contained in the directors’ Remuneration report (“the auditable part”).
This report is made solely to the company’s members, as a body, in accordance with section 235 of the Companies Act 1985. Our audit work
has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s 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
and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the Annual Report, the directors’ Remuneration report and the ﬁnancial statements in accordance
with applicable law and United Kingdom Accounting Standards are set out in the Statement of directors’ responsibilities.
Our responsibility is to audit the ﬁnancial statements and the auditable part of the directors’ Remuneration report in accordance with relevant
legal and regulatory requirements, and United Kingdom Auditing Standards.
We report to you our opinion as to whether the ﬁnancial statements give a true and fair view and whether the ﬁnancial statements and the
auditable part of the directors’ Remuneration report have been properly prepared in accordance with the Companies Act 1985. We also report
to you if, in our opinion, the directors’ report is not consistent with the ﬁnancial statements, if the company has not kept proper accounting
records, if we have not received all the information and explanations we require for our audit, or if information speciﬁed by law regarding
directors’ remuneration and transactions with the company and other members of the group is not disclosed.
We review whether the Corporate governance report reﬂects the company’s compliance with the seven provisions of the Combined Code
speciﬁed for our review by the Listing Rules of the Financial Services Authority, and we report if it does not. We are not required to consider
whether the board’s statements on internal control cover all risks and controls, or form an opinion on the effectiveness of the group’s corporate
governance procedures or its risk and control procedures.
We read the other information contained in the Annual Report and consider whether it is consistent with the audited ﬁnancial statements. 
This other information comprises only the directors’ report, the unaudited part of the directors’ Remuneration report, the Chairman’s statement,
the Financial review and the Corporate governance report. We consider the implications for our report if we become aware of any 
apparent misstatements or material inconsistencies with the ﬁnancial statements. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices Board. An audit includes
examination, on a test basis, of evidence relevant to the amounts and disclosures in the ﬁnancial statements and the auditable part of the
directors’ Remuneration report. It also includes an assessment of the signiﬁcant estimates and judgements made by the directors in the
preparation of the ﬁnancial statements, and of whether the accounting policies are appropriate to the company’s circumstances, consistently
applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide 
us with sufﬁcient evidence to give reasonable assurance that the ﬁnancial statements and the auditable part of the directors’ Remuneration
report are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the
overall adequacy of the presentation of information in the ﬁnancial statements and the auditable part of the directors’ Remuneration report.
Opinion
In our opinion:
• the ﬁnancial statements give a true and fair view of the state of affairs of the company and the group at 30 September 2003 and of the
group proﬁt for the year then ended; and
• the ﬁnancial statements and the auditable part of the directors’ Remuneration report have been properly prepared in accordance with the
Companies Act 1985.
Baker Tilly
Registered Auditor
Chartered Accountants
2 Bloomsbury Street, London WC1B 3ST
4 February 2004
Independent auditor’s report to the members of Securicor plc Securicor Annual Report and Accounts 2003 41
Consolidated proﬁt and loss account
For the year ended 30 September 2003
Before Exceptional Before Exceptional
exceptional items exceptional items
items and (Note 2) and items and (Note 2) and
goodwill goodwill goodwill goodwill
amortisation amortisation Total amortisation amortisation Total
2003 2003 2003 2002 2002 2002
Notes £m £m £m £m £m £m
Turnover
Total turnover 1,644.8 – 1,644.8 1,759.9 – 1,759.9
Less share of joint ventures (321.0) – (321.0) (359.8) – (359.8)
Group turnover 1,323.8 – 1,323.8 1,400.1 – 1,400.1
Continuing operations 1,231.0 – 1,231.0 1,197.9 – 1,197.9
Acquisitions 38.9 – 38.9 –––
Discontinued operations 1 53.9 – 53.9 202.2 – 202.2
Group turnover 1 1,323.8 – 1,323.8 1,400.1 – 1,400.1
Group operating proﬁt/(loss)
Continuing operations 69.9 (11.6) 58.3 76.7 (11.3) 65.4
Acquisitions 3.8 (0.9) 2.9 –––
Discontinued operations 1 (7.0) – (7.0) (4.6) (76.0) (80.6)
1 66.7 (12.5) 54.2 72.1 (87.3) (15.2)
Share of operating proﬁt/(loss) in joint ventures and associates
Continuing operations 5.4 – 5.4 6.3 – 6.3
Acquisitions 1.1 – 1.1 –––
Discontinued operations 7.0 (0.1) 6.9 7.1 (0.1) 7.0
1 80.2 (12.6) 67.6 85.5 (87.4) (1.9)
Loss on sale or closure of operations 1, 2 – (0.8) (0.8) – (4.3) (4.3)
Loss on sale of ﬁxed assets 1, 2 ––– – (0.7) (0.7)
Proﬁt/(loss) on ordinary activities before 
interest and taxation 1, 2 80.2 (13.4) 66.8 85.5 (92.4) (6.9)
Net interest: 3
– Group (13.2) – (13.2) (13.0) – (13.0)
– Joint ventures and associates (continuing) (3.4) – (3.4) (3.3) – (3.3)
– Joint ventures (discontinued) (0.7) – (0.7) (1.4) – (1.4)
(17.3) – (17.3) (17.7) – (17.7)
Proﬁt/(loss) on ordinary activities before taxation 62.9 (13.4) 49.5 67.8 (92.4) (24.6)
Taxation 5 (18.3) 14.4 (3.9) (21.0) 4.2 (16.8)
Proﬁt/(loss) on ordinary activities after taxation 44.6 1.0 45.6 46.8 (88.2) (41.4)
Minority interests (1.1) – (1.1) (1.4) – (1.4)
Proﬁt/(loss) for the year 43.5 1.0 44.5 45.4 (88.2) (42.8)
Ordinary dividend 6 (12.8) – (12.8) (13.2) – (13.2)
Special dividend 6 – (75.0) (75.0) –––
Retained earnings/(deﬁcit) 20 30.7 (74.0) (43.3) 32.2 (88.2) (56.0)
Earnings/(loss) per share 7
Basic earnings/(loss) per share 7.4p (6.8)p
Diluted earnings/(loss) per share 7.4p (6.8)p
Normalised earnings per share before goodwill amortisation,
discontinued operations and exceptional items 7.3p 7.1p 42 Securicor Annual Report and Accounts 2003
2003 2003 2002 2002
Notes £m £m £m £m
Fixed assets
Intangible assets – goodwill 9 219.2 221.2
– development expenditure 10 – 26.4
Tangible assets 11 177.1 166.2
Investment in joint ventures:
– Share of gross assets 42.9 172.2
– Share of gross liabilities (36.1) (116.4)
– Net investment 12 6.8 55.8
Investment in associated undertakings 12 8.6 3.5
Investment in own shares 12 2.4 –
414.1 473.1
Current assets
Stocks 13 6.3 13.5
Debtors 14 222.0 232.5
Bank and deposit balances 15 73.5 67.2
301.8 313.2
Creditors – amounts falling due within one year
Borrowings 15 72.9 33.5
Corporation tax 10.9 7.7
Proposed dividends 8.6 8.7
Other 17 234.7 223.5
327.1 273.4
Net current (liabilities)/assets (25.3) 39.8
Total assets less current liabilities 388.8 512.9
Creditors – amounts falling due after more than one year
Borrowings 15 115.1 232.2
Provision for liabilities and charges 18 4.0 8.4
Net assets 8 269.7 272.3
Capital and reserves
Called up share capital 19 31.3 31.3
Reserves 20 232.0 235.6
Equity shareholders’ funds 263.3 266.9
Equity minority interests 20 6.4 5.4
Capital employed 269.7 272.3
Note:
The parent company balance sheet and notes are on pages 71 to 73.
Approved by the board on 4 February 2004.
Nick Buckles Trevor Dighton
Director Director
Consolidated balance sheet
At 30 September 2003 Securicor Annual Report and Accounts 2003 43
Consolidated cash ﬂow statement
For the year ended 30 September 2003
2003 2003 2002 2002
£m £m £m £m
Net cash ﬂow from operating activities (note 25a) 96.9 127.4
Dividends from associates and joint ventures 1.3 2.2
Net cash ﬂow from returns on investments and servicing of ﬁnance (note 25b) (13.8) (13.5)
Taxation (5.9) (13.1)
Net cash ﬂow from capital expenditure (note 25b) (39.7) (56.9)
Net cash ﬂow from acquisitions and disposals (note 25b) 156.0 (47.7)
Ordinary dividends paid (12.9) (10.7)
Special dividend paid (75.0) –
Cash ﬂow before use of liquid resources and ﬁnancing 106.9 (12.3)
Financing:
– Share issue – 3.6
– (Decrease)/increase in loans (101.1) 42.6
– Capital element of ﬁnance lease rental payments (1.3) (0.7)
Net cash ﬂow from ﬁnancing (102.4) 45.5
Increase in cash in the year 4.5 33.2
Reconciliation of net cash ﬂow to movement in net debt (note 25c)
Increase in cash in the year 4.5 33.2
Cash ﬂow from decrease/(increase) in debt and lease ﬁnancing 102.4 (41.9)
Change in net debt resulting from cash ﬂows 106.9 (8.7)
Borrowings acquired with subsidiary (1.8) (6.8)
New ﬁnance leases (5.2) (6.3)
Movement in net debt in the year 99.9 (21.8)
Translation adjustments (15.9) 6.4
Net debt at 1 October 2002 (198.5) (183.1)
Net debt at 30 September 2003 (114.5) (198.5) 44 Securicor Annual Report and Accounts 2003
2003 2002
£m £m
Proﬁt/(loss) on ordinary activities after taxation and minority interests 44.5 (42.8)
Translation adjustments on foreign currency net investments (note 20) (5.1) (9.4)
Total gains/(losses) recognised for the year and since the last Annual Report 39.4 (52.2)
Note of historical cost proﬁts and losses
There is no material difference between the reported proﬁt shown on page 41 and the proﬁt for the year restated on an historical cost basis.
Reconciliation of movement in equity shareholders’ funds
For the year ended 30 September 2003 
2003 2002
£m £m
Proﬁt/(loss) on ordinary activities after taxation and minority interests 44.5 (42.8)
Dividends (87.8) (13.2)
Retained deﬁcit (43.3) (56.0)
Translation adjustments on foreign currency net investments (note 20) (5.1) (9.4)
Proceeds of share capital issued – 3.6
Write-back of goodwill on disposals previously written off (note 21b) 44.8 –
Net decrease in shareholders’ funds (3.6) (61.8)
Equity shareholders’ funds at 1 October 2002 266.9 328.7
Equity shareholders’ funds at 30 September 2003 263.3 266.9
Statement of total recognised gains and losses
For the year ended 30 September 2003 Securicor Annual Report and Accounts 2003 45
Statement of accounting policies
1 Basis of accounting
The ﬁnancial statements have been prepared in accordance with applicable accounting standards. A summary of the more important group
accounting policies is given below. Accounting policies have been applied consistently with previous years other than in respect of the
implementation of UITF32 Employee beneﬁt trusts as detailed in note 12(b) to the consolidated accounts.
The company’s investment in Bridgend Custodial Services which has previously been accounted for as an associate has in these ﬁnancial
statements been reclassiﬁed as a joint venture. The carrying value of £7.0m at September 2002 has been restated accordingly, and the total
turnover for 2002 restated, increasing by £7.5m.
Accounting policies are periodically reviewed to ensure that they continue to be the most appropriate.
2 Accounting convention
The ﬁnancial statements are prepared under the historical cost convention.
3 Basis of consolidation
The consolidated accounts incorporate the accounts of Securicor plc, its subsidiary undertakings and the group’s share of the results and net
assets of its associates and joint ventures for the year ended 30 September 2003.
(a) Associated undertakings and joint ventures
Associated undertakings are entities in which a member of the group holds a long-term minority equity interest, but over which it is in a
position to exert a signiﬁcant inﬂuence. The accounts include the relevant proportion of the results of associated undertakings based on the 
last audited accounts and subsequent management accounts where year ends are not coterminous.
In the consolidated balance sheet the investments in associated undertakings are shown as the group’s share of underlying net assets under 
the heading “Investment in associated undertakings” .
Joint ventures are entities in which a member of the group holds a long-term interest and shares control under a contractual agreement. 
The accounts include the group’s share of results based on the last audited accounts and subsequent management accounts where year ends 
are not coterminous.
In the consolidated balance sheet the share of gross assets and gross liabilities is shown under the heading “Investment in joint ventures” .
(b) Dominant inﬂuence
For those associated undertakings and joint ventures where the group exercises dominant inﬂuence through management control of the
business the accounting treatment follows that of subsidiary undertakings.
4 Accounting for acquisitions and disposals
The results of businesses acquired or disposed of are consolidated from or to the effective dates of acquisition or disposal. On the acquisition 
of subsidiary undertakings or businesses, the acquisition cost is allocated against the fair value of net assets acquired, after adjustments to bring
accounting policies into line with those of the group. 
5 Group turnover
Turnover represents sales, excluding value added tax, by group companies to external customers.
6 Depreciation
Depreciation is calculated to write off the cost of tangible ﬁxed assets to their estimated residual values by equal annual instalments over their
expected economic life. No depreciation is provided on freehold or long leasehold land. Details of depreciation rates are disclosed in note 11 
to the consolidated accounts.
7 Research and development expenditure
Research expenditure is written off in the year in which it is incurred. Development expenditure represents expenditure mainly of a revenue
nature in establishing new services and products of the group. Such expenditure is amortised over the period during which the expenditure 
is revenue-producing up to a maximum of ten years. The directors review the capitalised development expenditure on an ongoing basis and,
where appropriate, provide for any impairment in value.
8 Stocks
Stocks are valued at the lower of cost and net realisable value on bases consistent with previous years. Cost represents expenditure incurred 
in the ordinary course of business to bring stock to its present condition and location and includes appropriate overheads. 46 Securicor Annual Report and Accounts 2003
9 Deferred taxation
In accordance with FRS19, deferred tax is provided in full on timing differences between the recognition of gains and losses in the ﬁnancial
statements and their recognition in tax computations, except that a net deferred tax asset is recognised only when it can be regarded as more
likely than not that it will be recovered. Provision is made for deferred tax that would arise upon the remittance of earnings from foreign
subsidiaries only to the extent that dividends have been accrued as receivable. Deferred tax is provided at current rates and is not discounted.
Deferred tax assets and liabilities are offset where they relate to taxes levied by the same tax authority and arise in the same taxable entity 
or group.
10 Foreign currencies
Transactions denominated in foreign currencies are translated at the average rate applicable to the accounting period. Assets and liabilities
denominated in foreign currencies have been translated into sterling at the rates of exchange ruling at the balance sheet dates. Foreign exchange
adjustments arising on consolidation and on borrowings arranged to ﬁnance foreign investments, have been transferred to reserves as disclosed 
in note 20 to the consolidated accounts. All other exchange adjustments are taken to the proﬁt and loss account.
11 Goodwill and amortisation
Goodwill, being the excess of the cost of an acquisition over the fair value attributed to the net tangible assets at acquisition, is capitalised 
and amortised over its useful economic life, which is expected not to exceed 20 years. Provision is made for any impairment.
Goodwill arising on acquisitions made on or before 30 September 1998 was charged directly to reserves. The proﬁt or loss on disposal 
or closure of a business includes any attributable goodwill previously charged to reserves.
12 Provisions
The costs of meeting lease requirements on unoccupied properties are provided for and discounted to present value. Interest is calculated 
at an applicable interest rate and charged to the proﬁt and loss account within external interest payable.
Expenditure incurred in the year is charged to the provision.
13 Leases
Assets held under ﬁnance leases are included as tangible ﬁxed assets at their capital value and depreciated over the shorter of the lease term
and their useful economic life. The capital element of future rentals is included within creditors and ﬁnance charges are allocated to accounting
periods over the period of the lease.
Annual rentals payable or receivable under operating leases are charged or credited to the proﬁt and loss account as incurred and future rental
obligations are disclosed in note 23 to the consolidated accounts.
14 Pensions
The group operates various funded pension schemes that are established in accordance with local conditions and practices within the countries
concerned. The principal UK scheme is of a deﬁned beneﬁt structure. The regular cost of providing beneﬁts is charged to operating proﬁt 
over the service lives of the members of the schemes on the basis of a constant percentage of pensionable pay. Variations from the regular 
cost arising from periodic actuarial valuations of the schemes are allocated to operating proﬁt over the expected remaining service lives of 
the members.
A contracted-in deﬁned contribution scheme was established in 1996 and is the main scheme for new employees.
The group has adopted the interim disclosure requirements of FRS17 as shown in note 4(c) to the consolidated accounts.
15 Financial instruments
The ﬁnancial instruments utilised by the group are interest rate swaps and forward exchange contracts. These instruments are held to manage 
the interest rate exposure of borrowings and currency exposures arising from operational transactions. Interest differentials arising from
derivatives are recognised by adjusting net interest payable. Gains or losses on forward contracts taken out to hedge certain transactions 
are recognised in the proﬁt and loss account at the same time as the transactions to which they relate.
16 Share awards
The estimated cost of share awards is spread evenly over the performance period.
Statement of accounting policies (continued) Securicor Annual Report and Accounts 2003 47
Notes to the consolidated accounts
1 Segmental and geographical analysis of results
Continuing Discontinued
operations Acquisitions operations Total Total
2003 2003 2003 2003 2002
£m £m £m £m £m
Turnover
United Kingdom 569.8 – 36.0 605.8 594.1
Europe, Middle East and Africa 410.5 38.4 2.1 451.0 395.9
Americas 177.6 – 15.8 193.4 351.5
Asia 80.3 0.5 – 80.8 70.9
1,238.2 38.9 53.9 1,331.0 1,412.4
Less: security joint venture UK (7.2) –– (7.2) (7.5)
Less: security joint venture Asia –––– (4.8)
Group turnover 1,231.0 38.9 53.9 1,323.8 1,400.1
Cost of sales (930.7) (19.3) (46.7) (996.7) (1,081.4)
Gross proﬁt 300.3 19.6 7.2 327.1 318.7
Administration expenses (230.4) (15.8) (14.2) (260.4) (246.6)
Goodwill amortisation (11.6) (0.9) – (12.5) (11.3)
Operating exceptional items –––– (76.0)
Group operating proﬁt/(loss) 58.3 2.9 (7.0) 54.2 (15.2)
Proﬁt/(loss) on ordinary activities before interest and taxation
United Kingdom 54.6 – 0.1 54.7 46.3
Europe, Middle East and Africa 15.0 3.8 (0.4) 18.4 25.5
Americas 0.6 – (6.7) (6.1) 2.5
Asia 5.1 1.1 – 6.2 4.1
75.3 4.9 (7.0) 73.2 78.4
Distribution (50%) share
United Kingdom –– 6.6 6.6 6.5
Europe, Middle East and Africa –– 0.4 0.4 0.6
–– 7.0 7.0 7.1
EBITA (earnings before interest, taxation, goodwill
amortisation and exceptional items) 75.3 4.9 – 80.2 85.5
Goodwill amortisation
United Kingdom (2.3) – (0.1) (2.4) (0.8)
Europe, Middle East and Africa (5.1) (0.9) – (6.0) (5.6)
Americas (2.7) –– (2.7) (4.0)
Asia (1.5) –– (1.5) (1.0)
(11.6) (0.9) (0.1) (12.6) (11.4)
Operating exceptional items (note 2b)
United Kingdom –––– (38.9)
Americas –––– (37.1)
–––– (76.0)
Operating proﬁt/(loss) including share of proﬁt/(loss)
in joint ventures and associates 63.7 4.0 (0.1) 67.6 (1.9) 48 Securicor Annual Report and Accounts 2003
Notes to the consolidated accounts (continued)
1 Segmental and geographical analysis of results (continued)
Continuing Discontinued
operations Acquisitions operations Total Total
2003 2003 2003 2003 2002
£m £m £m £m £m
Operating proﬁt/(loss) including share of proﬁt/(loss) 
in joint ventures and associates 63.7 4.0 (0.1) 67.6 (1.9)
Proﬁt/(loss) on sale or closure of operations (note 2b)
United Kingdom –– 30.1 30.1 (6.0)
Europe, Middle East and Africa –– (2.3) (2.3) 1.7
Americas –– (28.6) (28.6) –
Loss on sale of ﬁxed assets (note 2b)
United Kingdom –––– (0.7)
–– (0.8) (0.8) (5.0)
Total proﬁt/(loss) on ordinary activities before interest and taxation 63.7 4.0 (0.9) 66.8 (6.9)
Discontinued group operations for 2003 represent the aviation security activities of Argenbright Security (exited February 2003), the operations of
Securicor Wireless Technology (sold December 2002), the operations of Securicor Information Systems (sold May 2003), the operations of Securicor
Cash Machine (sold June 2003), operations in Angola, Equatorial Guinea and Qatar (exited during the year) and the group’s share of the operations
of the Securicor Distribution joint venture (sold July 2003). For 2002, discontinued group operations also include SafeDoor (closed May 2002).
In the year to 30 September 2002 turnover from discontinued operations amounted to £57.0m in the United Kingdom, £3.6m in Europe,
Middle East and Africa and £141.6m in the Americas. Operating proﬁts/(losses) from discontinued operations before exceptional items and
goodwill amortisation and excluding the Distribution joint venture in 2002 amounted to £(7.7m) in the United Kingdom, £1.2m in Europe,
Middle East and Africa and £1.9m in the Americas.
The group’s continuing operations are all in the Security sector. Turnover from discontinued operations in the year to 30 September 2003
amounted to £25.6m from the Security sector and £28.3m from the Communications sector (year to 30 September 2002: £141.6m and £60.6m
respectively). Operating proﬁts/(losses) from discontinued operations before exceptional items and goodwill amortisation and excluding the
Distribution joint venture in the year to 30 September 2003 all arose in the Security sector (year to 30 September 2002: £2.9m from the Security 
sector and £(7.5m) from the Communications sector).
2Proﬁt/(loss) on ordinary activities before interest and taxation
(a) Proﬁt/(loss) on ordinary activities before interest and taxation has been arrived at after taking account of:
2003 2002
£m £m
Auditors’ remuneration:
– audit 0.6 0.6
– other services in the UK 0.1 0.1
Depreciation of tangible ﬁxed assets:
– owned assets 33.3 30.5
– leased assets 1.9 0.2
Goodwill amortisation (excluding joint ventures and associated undertakings) 12.5 11.3
Amortisation of development expenditure – 0.5
Research and development expenditure 0.2 2.1
Operating lease rentals payable:
– plant, machinery and vehicles 22.4 15.2
– other including properties 17.3 15.1
Operating lease rentals receivable:
– plant and machinery 1.4 0.7
Loss on disposal of tangible ﬁxed assets 0.9 0.8
Cost of Performance Share Plan awards 0.4 –
In addition to the amounts shown above, the auditors received fees of £0.4m (2002: £0.4m) relating to the acquisition and disposal of subsidiaries
and businesses during the year. Securicor Annual Report and Accounts 2003 49
Notes to the consolidated accounts (continued)
2Proﬁt/(loss) on ordinary activities before interest and taxation (continued)
(b) Exceptional items
2003 2002
£m £m
Within group operating proﬁt/(loss)
Impairment of goodwill arising on acquisition of Argenbright Security – (33.0)
Restructuring costs of Argenbright Security – (4.1)
Impairment of intangible ﬁxed asset at Securicor Information Systems – (36.3)
Impairment of intangible ﬁxed asset and associated costs at Securicor Wireless Technology – (2.6)
– (76.0)
Proﬁt/(loss) on sale or closure of operations
SafeDoor – (5.7)
Securicor Distribution 65.7 –
Securicor Information Systems (30.5) –
Others (7.1) 1.6
Impairment of goodwill arising on acquisition of Argenbright Security associated with exit from 
aviation security activities (28.6) –
Loss on sale or closure of joint venture operations (0.3) (0.2)
(0.8) (4.3)
Loss on sale of ﬁxed assets – (0.7)
3 Net interest
2003 2003 2002 2002
£m £m £m £m
Interest receivable (group) 2.4 2.1
Interest payable (group)
Loans and overdrafts (15.1) (14.9)
Interest on ﬁnance leases (0.5) (0.2)
(15.6) (15.1)
Interest payable (joint ventures – continuing) (3.3) (3.3)
Interest payable (associates – continuing) (0.1) –
Interest payable (joint ventures – discontinued) (0.7) (1.4)
(17.3) (17.7)
4 Staff costs and employees
(a) Staff costs:
2003 2002
£m £m
Staff costs, including directors’ emoluments:
Wages and salaries 796.5 840.1
Social security costs 85.5 86.2
Pension costs 15.8 11.9
897.8 938.2 50 Securicor Annual Report and Accounts 2003
Notes to the consolidated accounts (continued)
4 Staff costs and employees (continued)
(b) Number of employees:
2003 2002
Number Number
The average monthly number of employees of the group during the year was:
United Kingdom 20,080 19,632
Europe, Middle East and Africa 55,620 51,174
Americas 11,991 12,496
Asia 13,135 11,277
Continuing operations 100,826 94,579
Discontinued operations:
United Kingdom 298 712
Europe, Middle East and Africa 190 61
Americas 465 9,807
101,779 105,159
(c) Pension arrangements:
The group operates various funded pension schemes which are established in accordance with local conditions and practices within the countries
concerned. Contributions made to deﬁned contribution schemes, including the contracted-in deﬁned contribution scheme which is the main
scheme for new UK employees, and to foreign schemes totalled £9.2m (2002: £5.4m). The group’s principal scheme, which operates in the UK,
is of a deﬁned beneﬁt structure. The assets of the deﬁned beneﬁt scheme are held in a separate trustee-administered fund. The pension costs
are assessed on the advice of a qualiﬁed independent actuary using the projected unit credit method.
The contributions paid into the UK deﬁned beneﬁt scheme constitute the cost recognised in the proﬁt and loss account and amounted to £6.6m
(2002: £6.5m) together with £4.8m (2002: £5.5m) contributed by the Distribution joint venture up to the date of the disposal of the group’s
interest. Regular actuarial assessments of the scheme are carried out, the latest being at 5 April 2003, and updated to 30 September 2003. 
The most signiﬁcant actuarial assumptions used were that the long-term composite rates of return on investments would be 2.4% above the
risk-free return, 2.4% above the rate of annual salary increase and 4.4% above the rate of pension increase. As at 30 September 2003 the
market value of the scheme assets was £602m. This is in excess of the assessment of the scheme’s liabilities on a current funding level basis 
(the Minimum Funding Requirement solvency level), being based upon pensionable service to and pensionable earnings at 30 September 2003.
The scheme has therefore been certiﬁed by an independent actuary as meeting the Minimum Funding Requirement solvency level. The assets
comprise 97% of the scheme’s liabilities on actuarial assumptions which take account of future service and earnings increases.
Variances arising on the actuarial valuation of the deﬁned beneﬁt scheme will be reviewed regularly and, in accordance with SSAP24 Pension
costs, recognised in the proﬁt and loss account over the average remaining service lives of the scheme’s members. An additional cash contribution
of £5m before tax has been made in the year commencing 1 October 2003, with no proﬁt and loss account impact. The contribution rate for
the year commencing 1 October 2003 has been increased from 12% to 14% of pensionable earnings in respect of future service beneﬁts.
FRS17 Retirement beneﬁts was issued by the Accounting Standards Board in November 2000 but is not fully mandatory until the accounts 
for the year ended 30 September 2006 and some of its requirements may alter in the process of the harmonisation of UK and international
accounting standards. Prior to this the transitional arrangements are to disclose certain items by way of note.
The major assumptions for the UK deﬁned beneﬁt pension scheme valuation in accordance with the methodology prescribed by FRS17 are 
as follows:
2003 2002 2001
% %%
Rate of increase in salaries 4.70 4.25 4.50
Rate of increase in pension payment 2.70 2.25 2.50
Discount rate 6.20 5.40 6.00
Inﬂation assumption 2.70 2.25 2.50 Securicor Annual Report and Accounts 2003 51
Notes to the consolidated accounts (continued)
4 Staff costs and employees (continued)
On full compliance with FRS17, the amounts which would have been charged to the proﬁt and loss account and statement of total recognised
gains and losses for the year, on the basis of the valuation assumptions made as at the previous year end, including the group’s share of the
Distribution joint venture up to the date of the disposal of the group’s interest, are as follows:
2003 2002
£m £m
Proﬁt on ordinary activities before interest and taxation
Current service cost (9.3) (10.5)
Past service cost (24.0) –
Curtailment gain 32.0 –
(1.3) (10.5)
Financial items
Expected return on scheme assets 36.0 34.2
Interest cost on scheme liabilities (40.0) (34.7)
(4.0) (0.5)
Total included within proﬁt before taxation (5.3) (11.0)
Statement of total recognised gains and losses
Actual return less expected return on scheme assets 44.1 (79.3)
Experience gains/(losses) on scheme liabilities 0.3 (4.5)
Changes in assumptions in valuation of scheme liabilities 33.0 (55.5)
Total actuarial gain/(loss) 77.4 (139.3)
Difference between expected and actual return on scheme assets as a percentage of scheme assets (%) 7.3 (16.9)
Experience gains/(losses) on scheme liabilities as a percentage of scheme liabilities (%) – (0.7)
Total actuarial gain/(loss) as a percentage of scheme liabilities (%) 10.5 (20.3)
The market value of assets in the UK deﬁned beneﬁt scheme at 30 September 2003, the comparative numbers for 2002 and 2001 (including
the group’s share of the Distribution joint venture) and the expected rates of return are as follows:
2003 2003 2002 2002 2001 2001
£m % £m % £m %
Equities 413.1 8.0 263.3 8.0 351.5 7.0
Bonds 188.9 5.5 204.7 5.4 221.5 6.0
Total market value of assets 602.0 468.0 573.0
Actuarial value of liability (737.0) (686.0) (650.0)
Deﬁcit in the scheme (135.0) (218.0) (77.0)
Related deferred tax asset 40.5 65.4 23.1
Net pension liability (94.5) (152.6) (53.9) 52 Securicor Annual Report and Accounts 2003
Notes to the consolidated accounts (continued)
4 Staff costs and employees (continued)
The analysis of the movement in the scheme deﬁcit during the year calculated in accordance with FRS17 is as follows:
2003 2002
£m £m
Deﬁcit at 1 October 2002 (218.0) (77.0)
Current service cost (9.3) (10.5)
Past service cost (24.0) –
Curtailment gain 32.0 –
Contributions 10.9 9.3
Expected return on scheme assets 36.0 34.2
Interest cost on scheme liabilities (40.0) (34.7)
Actuarial gain/(loss) 77.4 (139.3)
Deﬁcit at 30 September 2003 (135.0) (218.0)
FRS17 speciﬁes that pension liabilities should be discounted at an appropriate high quality corporate bond rate. At 30 September 2002, the
rate used was the then median AA corporate bond rate. The directors consider that it is more appropriate to apply the AA corporate bond rate
which most closely approximates to the timescale of the liability proﬁle and the asset portfolio of the scheme and have therefore used such 
a rate, being 6.2%, at 30 September 2003.
Upon the sale of the group’s 50% interest in the Distribution joint venture the liabilities in respect of the employees of the joint venture 
became the full responsibility of the group pension scheme, giving rise to a past service cost of £24.0m, but reduced by £32.0m as those
employees became deferred rather than active members of the group scheme.
The UK deﬁned beneﬁt scheme is largely closed to new members. Under the projected unit method of actuarial valuation prescribed by FRS17
the current service cost will increase as the members of the scheme approach retirement.
If the pension scheme deﬁcit calculated as above in accordance with FRS17 had been recognised in the ﬁnancial statements, the group’s net
assets and proﬁt and loss account reserve would have been disclosed as follows:
2003 2002
£m £m
Net assets excluding pension deﬁcit 269.7 272.3
Pension deﬁcit (net of deferred tax) (94.5) (152.6)
Net assets including pension deﬁcit 175.2 119.7
Proﬁt and loss account reserve excluding pension deﬁcit 171.3 174.9
Pension deﬁcit (net of deferred tax) (94.5) (152.6)
Proﬁt and loss account reserve including pension deﬁcit 76.8 22.3
(d) Emoluments of the directors of Securicor plc:
2003 2002
£’000 £’000
As executives 1,195 2,380
As directors 408 384
Total directors’ emoluments excluding employer’s pension scheme contributions 1,603 2,764
The remuneration of the highest paid director (Mr Buckles) was £425,206 (2002, Mr Wiggs: £995,266). Mr Wiggs’ remuneration in 2002
included £750,000 by way of special bonus.
(e) Number of directors accruing retirement beneﬁts:
2003 2002
Number Number
The number of directors who accrued beneﬁts under the group’s deﬁned beneﬁt scheme 4 6
For further details regarding directors’ remuneration, see the Remuneration report on pages 34 to 39. Securicor Annual Report and Accounts 2003 53
Notes to the consolidated accounts (continued)
5 Taxation
2003 2002
£m £m
Group
UK corporation tax 21.8 16.0
UK corporation tax adjustments for previous years 0.5 (8.9)
Overseas tax – 10.5
22.3 17.6
Joint ventures
UK corporation tax 2.4 1.2
UK corporation tax adjustments for previous years – (0.2)
Associated undertakings
UK corporation tax 0.5 0.3
Exceptional items
UK corporation tax (12.1) (1.7)
Overseas tax (0.5) (0.8)
Total current tax 12.6 16.4
Deferred tax
Group (3.2) (0.2)
Joint ventures – 0.2
Adjustments in respect of previous years (3.7) 2.1
Exceptional items – current year (3.5) (1.7)
Exceptional items – adjustments in respect of previous years 1.7 –
Total deferred tax (8.7) 0.4
Tax on proﬁt/(loss) on ordinary activities 3.9 16.8
The current tax charge may be reconciled to the standard UK tax rate as follows:
Tax on proﬁt on ordinary activities at UK tax rate of 30% 14.9 (7.4)
(Income)/expenses not (chargeable)/deductible for tax purposes (21.8) 22.2
Timing differences in the recognition of proﬁts and losses for tax purposes 6.7 0.1
Different tax rates on overseas earnings (2.3) (1.1)
Unutilised overseas losses 14.6 12.4
Adjustments in respect of previous years 0.5 (9.8)
Total current tax 12.6 16.4
The deferred tax charge may be analysed as follows:
Origination and reversal of timing differences (6.7) (1.7)
Adjustments in respect of previous years (2.0) 2.1
Total deferred tax (8.7) 0.4
Factors that may impact the group’s tax charges in the future include:
1 No deferred tax has been provided in respect of the remittance of earnings from foreign subsidiaries except to the extent that dividends 
have been accrued as receivable.
2 Tax losses to the value of £20.3m have not been recognised as deferred tax assets as their utilisation is uncertain and/or long-term. 54 Securicor Annual Report and Accounts 2003
Notes to the consolidated accounts (continued)
6 Dividends
2003 2002
£m £m
Ordinary dividend
Interim (paid) 0.78p (2002: 0.72p) 4.2 4.5
Final (proposed) 1.62p (2002: 1.39p) 8.6 8.7
Total ordinary dividend 2.40p (2002: 2.11p) 12.8 13.2
Special dividend (paid) 12.0p 75.0 –
The special dividend was paid following the completion of the sale of the group’s share of the Distribution joint venture.
7 Earnings/(loss) per share
2003 2002
£m £m
Basic
Proﬁt/(loss) after taxation 45.6 (41.4)
Minority interests (1.1) (1.4)
Proﬁt/(loss) attributable to shareholders 44.5 (42.8)
Weighted average number of shares outstanding (m) 605.1 625.0
Basic earnings/(loss) per share (pence) 7.4 (6.8)
Diluted
Weighted average number of shares outstanding (m) 605.2 625.0
Diluted earnings/(loss) per share (pence) 7.4 (6.8)
Normalised earnings before goodwill amortisation, discontinued operations and exceptional items
Proﬁt/(loss) attributable to shareholders 44.5 (42.8)
Exceptional items, goodwill amortisation and discontinued operations (all net of tax) (0.4) 87.4
Adjusted attributable proﬁt 44.1 44.6
Weighted average number of shares outstanding (m) 605.1 625.0
Normalised earnings per share (pence) 7.3 7.1 Securicor Annual Report and Accounts 2003 55
Notes to the consolidated accounts (continued)
8 Net assets
Segmental analysis of net assets
Share of joint Share of joint
ventures and ventures and
associated Total associated Total 
Group undertakings net assets Group undertakings net assets
2003 2003 2003 2002 2002 2002
£m £m £m £m £m £m
United Kingdom 204.4 6.8 211.2 192.8 7.0 199.8
Europe, Middle East and Africa 110.5 0.5 111.0 93.8 2.2 96.0
Americas 45.0 – 45.0 78.8 – 78.8
Asia 14.2 8.1 22.3 14.0 1.3 15.3
374.1 15.4 389.5 379.4 10.5 389.9
Discontinued operations ––– 45.4 48.8 94.2
Net operating assets 374.1 15.4 389.5 424.8 59.3 484.1
Tax, dividends and provisions (5.3) (13.3)
Net debt (114.5) (198.5)
Total net assets 269.7 272.3
The net operating assets at 30 September 2002 of operations discontinued during the year ending 30 September 2003 amounted to £91.8m 
in the United Kingdom and £2.4m in Europe, Middle East and Africa.
Note:
Share of net assets of joint ventures and associated undertakings represents shares at cost, loans and the group’s share of post acquisition reserves
(note 12).
9 Intangible ﬁxed assets – goodwill
£m
Cost
At 1 October 2002 239.5
Additions 27.3
Amounts written out (29.2)
Translation adjustments 12.6
At 30 September 2003 250.2
Amortisation
At 1 October 2002 18.3
Provision for the year 12.5
Translation adjustments 0.2
At 30 September 2003 31.0
Net book value
At 30 September 2003 219.2
At 30 September 2002 221.2 56 Securicor Annual Report and Accounts 2003
Notes to the consolidated accounts (continued)
10 Intangible ﬁxed assets – development expenditure
£m
Cost
At 1 October 2002 28.4
Additions 1.0
Amounts written out (29.4)
At 30 September 2003 –
Amortisation
At 1 October 2002 2.0
Provision for the year –
Amounts written out (2.0)
At 30 September 2003 –
Net book value
At 30 September 2003 –
At 30 September 2002 26.4
11 Tangible ﬁxed assets
Land and Equipment
buildings and vehicles Total
£m £m £m
Cost
At 1 October 2002 85.4 214.5 299.9
Additions at cost 14.6 44.0 58.6
Acquisition of subsidiaries 6.1 3.2 9.3
Disposals (3.6) (38.6) (42.2)
Disposal of subsidiaries (1.2) (19.3) (20.5)
Translation adjustments 1.0 0.5 1.5
At 30 September 2003 102.3 204.3 306.6
Depreciation
At 1 October 2002 19.3 114.4 133.7
Provision for the year 3.6 31.6 35.2
Disposals (0.9) (25.3) (26.2)
Disposal of subsidiaries – (14.0) (14.0)
Translation adjustments 0.3 0.5 0.8
At 30 September 2003 22.3 107.2 129.5
Net book value
At 30 September 2003 80.0 97.1 177.1
At 30 September 2002 66.1 100.1 166.2
Notes:
(a) Equipment held under ﬁnance leases and included above:
Net book value £11.2m (2002: £6.8m)
Accumulated depreciation £3.4m (2002: £1.5m)
Provision for the year £1.9m (2002: £0.2m) Securicor Annual Report and Accounts 2003 57
Notes to the consolidated accounts (continued)
11 Tangible ﬁxed assets (continued)
(b) Land and buildings
2003 2002
£m £m
The net book value of land and buildings comprises:
Freeholds 41.9 39.0
Long leaseholds (50 years and over) 13.3 16.2
Short leaseholds (under 50 years) 24.8 10.9
80.0 66.1
(c) Depreciation rates
The following table shows the annual rates of depreciation. Depreciation is calculated on a straight line basis:
Freehold and long leasehold buildings up to 2%
Short leaseholds (under 50 years) over the life of the lease
Equipment 10-33.33%
Motor vehicles 10-33.33%
12 Investments
(a) Investments in associated undertakings and joint ventures
Associated Joint
undertakings ventures Total
£m £m £m
Shares at cost
At 1 October 2002 1.4 0.1 1.5
Additions 6.5 – 6.5
Disposals (0.1) – (0.1)
Transfer to subsidiary undertakings (0.4) – (0.4)
At 30 September 2003 7.4 0.1 7.5
Loans at cost
At 1 October 2002 0.4 5.9 6.3
Additions 0.5 – 0.5
Repayments (0.4) (0.1) (0.5)
At 30 September 2003 0.5 5.8 6.3
Share of post acquisition reserves
At 1 October 2002 1.7 49.8 51.5
Retained proﬁts for year 0.9 4.0 4.9
Transfer to subsidiary undertaking (1.3) – (1.3)
Disposals (0.7) (52.9) (53.6)
Translation adjustments 0.1 – 0.1
At 30 September 2003 0.7 0.9 1.6
Total investments
At 30 September 2003 8.6 6.8 15.4
At 30 September 2002 3.5 55.8 59.3 58 Securicor Annual Report and Accounts 2003
Notes to the consolidated accounts (continued)
12 Investments (continued)
Associates: group share of results and net assets
2003 2002
£m £m
Share of turnover 8.8 10.4
Share of proﬁt before tax 1.4 0.8
Share of taxation (0.5) 0.2
Share of proﬁt after taxation 0.9 1.0
Share of assets
Fixed assets 7.0 3.9
Current assets 3.8 6.4
Share of gross assets 10.8 10.3
Share of liabilities
Liabilities due within one year 1.9 6.2
Liabilities due after more than one year 0.3 1.0
2.2 7.2
Less loans from group companies – (0.4)
Group share of gross liabilities 2.2 6.8
Share of net assets 8.6 3.5
Joint ventures: group share of results and net assets
2003 2002
Distribution Distribution
joint Other joint Total joint joint Other joint Total joint
venture ventures ventures venture ventures ventures
£m £m £m £m £m £m
Share of turnover 313.8 7.2 321.0 347.5 12.3 359.8
Share of proﬁt on ordinary activities before 
exceptional items and taxation 6.2 1.7 7.9 5.7 2.1 7.8
Share of exceptional items (0.3) – (0.3) (0.2) – (0.2)
Share of taxation (1.9) (0.5) (2.4) (1.2) (0.5) (1.7)
Share of proﬁt after taxation 4.0 1.2 5.2 4.3 1.6 5.9
Share of assets
Fixed assets – 3.6 3.6 43.5 0.2 43.7
Current assets – 39.3 39.3 88.6 39.9 128.5
Share of gross assets – 42.9 42.9 132.1 40.1 172.2
Share of liabilities
Liabilities due within one year – 2.0 2.0 82.4 2.8 85.2
Liabilities due after more than one year – 39.9 39.9 0.9 36.2 37.1
– 41.9 41.9 83.3 39.0 122.3
Less loans from group companies – (5.8) (5.8) – (5.9) (5.9)
Group share of gross liabilities – 36.1 36.1 83.3 33.1 116.4
Share of net assets – 6.8 6.8 48.8 7.0 55.8
The group’s share of net assets of associates and joint ventures includes £nil in respect of purchased goodwill (2002: £2.1m). The group’s share 
of goodwill amortisation charged in associates and joint ventures for the year to 30 September 2003 was £0.1m (2002: £0.1m). Securicor Annual Report and Accounts 2003 59
Notes to the consolidated accounts (continued)
12 Investments (continued)
(b) Investment in own shares
Investment of £2.4m in own shares at 30 September 2003 comprises the cost of 2,602,300 ordinary shares held on the company’s behalf 
by an employee beneﬁt trust in respect of the Performance Share Plan for senior executives. The market value of these shares at 30 September
2003 was £2.2m. Dividends are waived in respect of these shares.
13 Stocks
2003 2002
£m £m
Raw materials 0.6 0.9
Work in progress 0.3 8.2
Finished goods including consumables 5.4 4.4
6.3 13.5
14 Debtors
2003 2002
£m £m
Trade debtors 154.0 170.1
Amounts owed by associated undertakings 0.3 1.7
Corporation tax 3.4 3.7
Other debtors 22.2 22.6
Prepayments and accrued income 27.2 26.6
Deferred tax asset 14.9 7.8
222.0 232.5
Included in prepayments is £1.4m (2002: £0.5m) falling due after more than one year.
The deferred tax asset will be utilised after more than one year. The deferred tax movements are analysed in note 18. 60 Securicor Annual Report and Accounts 2003
Notes to the consolidated accounts (continued)
15 Net borrowings
2003 2002
£m £m
Long-term borrowings
Secured 0.5 0.5
Unsecured 106.1 226.2
Finance leases 10.6 6.8
Less: repayable within one year (2.1) (1.3)
Total long-term borrowings 115.1 232.2
Short-term borrowings
Bank overdraft (unsecured) 6.8 4.0
Secured loans – 0.2
Unsecured loans 64.0 28.0
Finance leases 2.1 1.3
Total short-term borrowings 72.9 33.5
Total borrowings 188.0 265.7
Bank and deposit balances (73.5) (67.2)
Net debt 114.5 198.5
The payment proﬁle of long-term borrowings is noted below.
Repayable within one to two years
Secured 0.3 0.4
Unsecured 4.1 35.4
Finance leases 1.7 0.8
Repayable within two to ﬁve years
Secured 0.1 0.1
Unsecured 102.0 190.8
Finance leases 4.4 4.7
Not wholly repayable within ﬁve years
Secured 0.1 –
Finance leases 2.4 –
115.1 232.2
Secured loans are secured on property and other assets of the group, and are mainly repayable by monthly instalments during 2003-5.
16 Financial instruments
Financial instrument disclosures made in respect of net borrowings (note 15), excluding short-term debtors and creditors as permitted under
FRS13 Derivatives and other ﬁnancial instruments, are as follows: 
Currency risk
The group conducts business in many currencies and publishes its ﬁnancial statements in sterling. It is in consequence subject to foreign
exchange risk due to the translation of the results and net assets of its foreign subsidiaries. The group hedges a substantial portion of its
exposure to ﬂuctuations in the translation into sterling of its foreign net assets by holding borrowings in foreign currencies. Exchange differences
arising on the translation of foreign currency net borrowings are recognised in the statement of total recognised gains and losses to match
exchange differences on foreign currency equity investments, in accordance with SSAP20 Foreign currency translation. At 30 September 2003,
the group’s US dollar and euro net assets (after the impairment of goodwill in respect of the US aviation security activities) before net
borrowings were approximately 120% and 100% hedged by net borrowings respectively. Securicor Annual Report and Accounts 2003 61
Notes to the consolidated accounts (continued)
16 Financial instruments (continued)
Interest rate risk
The group has an exposure to interest rate risk and within this category of market risk is most vulnerable to changes in US dollar, sterling and
euro interest rates. To manage interest rate risk, the group manages its proportion of ﬁxed to variable rate borrowings within limits approved 
by the directors, primarily by utilising interest rate swaps and, where appropriate, forward rate agreements to manage short-term interest rate
exposures. At 30 September 2003 the group had no existing swaps or forward rate agreements.
Financial liabilities
2003 2002
£m £m
Fixed rates
Net obligations under ﬁnance leases 10.6 6.8
Floating rates
Sterling 3.5 161.1
Euro 83.3 1.9
SA rand 26.8 20.5
US dollar 60.7 66.5
Other 3.1 8.9
188.0 265.7
Net obligations under ﬁnance leases bear interest at a weighted average rate of 5%. Interest-bearing ﬁnancial liabilities at ﬂoating rates comprise
revolving credit loans and bank overdrafts and bear interest based on short-term interbank rates (predominantly three month LIBOR). There were
no ﬁnancial liabilities upon which no interest is paid either at 30 September 2003 or at 30 September 2002.
Undrawn committed facilities
2003 2002
£m £m
Repayable within one year 70.0 5.0
Repayable within one to two years – 8.0
Repayable within two to ﬁve years 63.6 22.0
133.6 35.0
Commitment fees are paid on the undrawn portion of these facilities. Borrowings on the facilities will be at prevailing LIBOR rates, dependent 
on the period of drawdown, plus an agreed margin. The committed bank facilities are subject to ﬁnancial covenants and any non-compliance 
with covenants may lead to an acceleration of maturity. The group was fully in compliance with its ﬁnancial covenants throughout the years to
30 September 2003 and 30 September 2002.
Fair value of ﬁnancial assets and liabilities
Set out below is a year-end comparison of fair and book values of all the group’s ﬁnancial instruments by category. Fair values are determined
by reference to market values, where available, or calculated by discounting cash ﬂows at prevailing interest rates.
2003 2003 2002 2002
Book value Fair value Book value Fair value
£m £m £m £m
Bank and deposit balances 73.5 73.5 67.2 67.2
Short-term borrowings and current portion of long-term debt (72.9) (72.9) (33.5) (33.5)
Long-term borrowings (115.1) (115.1) (232.2) (232.2)
(114.5) (114.5) (198.5) (198.5) 62 Securicor Annual Report and Accounts 2003
Notes to the consolidated accounts (continued)
16 Financial instruments (continued)
Credit risk
During the year the group entered into a number of foreign exchange contracts. Counterparties to these transactions have a long-term credit
rating of A or better. The group monitors its exposure to its counterparties, together with their credit ratings, and, by policy, limits the amount
of agreements or contracts it enters into with any one party.
Bank and deposit balances
Cash at bank and liquid resources principally comprise money market deposits, current account balances and cash of £29.2m held in ATM
machines. Approximately 80% of the group’s bank and deposit balances are held in sterling, US dollars and euros.
17 Creditors
2003 2002
£m £m
Amounts falling due within one year
Trade creditors 31.7 37.6
Amounts owed to associated undertakings 3.3 2.4
Other taxation and social security costs 40.7 56.4
Other creditors 58.1 40.6
Accruals and deferred income 100.9 86.5
234.7 223.5
18 Provisions for liabilities and charges
2003 2002
£m £m
Provisions relating to onerous property contracts 4.0 6.0
Deferred tax liabilities – 2.4
4.0 8.4
The group has provided against future liabilities for all properties sub-let at a shortfall and for long-term idle properties. The provision is based
on the present value of future net cash outﬂows relating to rent, rates, service charges and costs of marketing the properties. Although the
majority of the provision should be realised within ﬁve years, the exact timing is unclear. The movement in the provision was as follows:
£m
At 1 October 2002 6.0
Proﬁt and loss account (1.1)
Expended in year (0.9)
At 30 September 2003 4.0 Securicor Annual Report and Accounts 2003 63
Notes to the consolidated accounts (continued)
18 Provisions for liabilities and charges (continued)
The movement in the deferred tax provision was as follows:
£m
Provision at 1 October 2002 (2.4)
Asset at 1 October 2002 7.8
Total deferred tax position at 1 October 2002 5.4
Proﬁt and loss account 8.7
Subsidiaries acquired (0.1)
Translation adjustments 0.9
Total deferred tax position at 30 September 2003 14.9
Asset at 30 September 2003 14.9
Provision at 30 September 2003 –
The deferred tax asset is disclosed within debtors (note 14). The total deferred tax position is analysed as follows:
2003 2002
£m £m
United Kingdom
Accelerated capital allowances 1.4 (3.1)
Other timing differences 1.9 0.7
3.3 (2.4)
Overseas
Accelerated capital allowances (0.2) (0.1)
Other timing differences (0.1) (1.4)
Tax losses 11.9 9.3
11.6 7.8
14.9 5.4
Deferred tax recognised in respect of tax losses principally relates to subsidiaries in Canada, Germany and South Africa. As these entities are
returning to proﬁtability, the recovery of tax losses is foreseeable.
19 Share capital
2003 2003 2002 2002
Authorised Issued Authorised Issued
££ ££
Securicor plc
Ordinary fully paid shares of 5
15
⁄17p each (2002: 5p each) 40,000,000 31,266,770 40,000,000 31,264,582
Nominal
value
Number £m
Ordinary shares in issue
At 1 October 2002 625,291,647 31.3
Shares issued during the year in connection with share consolidation 10 –
Shares issued during the year on exercise of options:
Executive Scheme 34,262 –
Sharesave Scheme 7,540 –
Share consolidation (93,798,363) –
At 30 September 2003 531,535,096 31.3
Following the disposal of the group’s 50% interest in Securicor Distribution and the payment of a special dividend of £75m on 18 July 2003,
the group effected a 17 for 20 share consolidation to ensure comparability of reported earnings per share data. 64 Securicor Annual Report and Accounts 2003
Notes to the consolidated accounts (continued)
19 Share capital (continued)
Options over shares outstanding at 30 September 2003 were as follows:
(a) Executive share option scheme
3 options over a total of 126,380 shares at 59.92p per share, exercisable during 2003-2006
6 options over a total of 127,073 shares at 68.48p per share, exercisable during 2003-2007
20 options over a total of 313,429 shares at 107.98p per share, exercisable during 2003-2008
71 options over a total of 2,535,000 shares at 164p per share, exercisable during 2003-2009
80 options over a total of 1,762,000 shares at 133.75p per share, exercisable during 2003-2010
85 options over a total of 1,363,235 shares at 153p per share, exercisable during 2003-2010
119 options over a total of 9,290,000 shares at 108p per share, exercisable during 2004-2011
13 options over a total of 730,000 shares at 130p per share, exercisable during 2005-2012
81 options over a total of 2,785,000 shares at 85p per share, exercisable during 2006-2013
12 options over a total of 425,000 shares at 82.75p per share, exercisable during 2006-2013
4 options over a total of 100,000 shares at 79.75p per share, exercisable during 2006-2013
The proceeds from shares allotted under this scheme during the year amounted to £23,462 (2002: £210,211)
(b) Sharesave scheme
1,657 options over a total of 4,360,317 shares at 107p per share, exercisable during 2003-2004
970 options over a total of 1,304,232 shares at 143p per share, exercisable during 2004-2005
1,275 options over a total of 3,231,646 shares at 104p per share, exercisable during 2005-2006
The proceeds from shares allotted under this scheme during the year amounted to £8,178 (2002 : £3,384,988)
All of the above options are inclusive of those held by directors as set out on page 37.
20 Reserves
Proﬁt and Share Merger
loss account premium reserve Total
£m £m £m £m
At 1 October 2002 174.9 7.3 53.4 235.6
Retained deﬁcit (43.3) –– (43.3)
Write-back of goodwill on disposals previously written off 44.8 –– 44.8
Translation adjustments (5.1) –– (5.1)
At 30 September 2003 171.3 7.3 53.4 232.0
Goodwill of £32.8m arising on acquisitions since 1989 has been written off to reserves up to 30 September 2003 (2002 restated: £77.6m).
Equity minority interests
The minority interests totalling £6.4m (2002: £5.4m) relate to Securicor Barbados Limited, Securicor Guyana Inc., Securicor Jamaica Limited, 
Al Mulla Security Services Co WLL (Kuwait), MAF-Securicor LLC (Dubai), Securicor Segura SA (Costa Rica), Securicor Segura SA (Dominican Republic),
Securicor Trinidad Limited, Securicor (South Africa) (Pty) Limited, Securicor New Century LLC (USA), PT Securicor Indonesia, Securicor (Thailand)
Limited, Securicor Sdn Bhd (Brunei), Shenzhen Securicor Donar Technology Co. Limited (China), Securicor Macau Limitada, Securicor Botswana
Limited and A Gray Security Services (Mauritius) (Pvt) Limited. Securicor Annual Report and Accounts 2003 65
Notes to the consolidated accounts (continued)
21 Acquisitions and disposals of subsidiaries and businesses
(a) Acquisitions
The principal acquisitions in the year were:
1 The remaining issued share capital of Geldnet Holding BV in The Netherlands (“Geldnet”). 
2 Acquisitions in Africa, principally Inco Holdings Limited in Botswana (“Africa”).
3 Other acquisitions, principally Shenzhen Donar Financial Equipment Service Co Ltd in China (“Other”).
Geldnet Geldnet Geldnet Africa Africa Africa
Provisional Provisional
Provisional fair value Provisional fair value
Net assets fair value of assets Net assets fair value of assets
acquired adjustments
1
acquired acquired adjustments
2
acquired
£m £m £m £m £m £m
Fixed assets – tangible 7.6 – 7.6 1.5 – 1.5
Stock 0.1 – 0.1 0.1 – 0.1
Debtors 9.8 – 9.8 0.8 – 0.8
Net debt (1.5) – (1.5) (0.3) – (0.3)
Creditors less than one year (10.3) (12.4) (22.7) (0.1) (0.2) (0.3)
Minority interests ––– (0.6) – (0.6)
Total assets 5.7 (12.4) (6.7) 1.4 (0.2) 1.2
Investment in associate transferred to subsidiary 1.3 – 1.3 –––
Cash consideration 14.4 – 14.4 4.9 – 4.9
Total consideration 15.7 – 15.7 4.9 – 4.9
Capitalised goodwill 10.0 12.4 22.4 3.5 0.2 3.7
Other Other Other Total Total Total
Provisional Provisional
Provisional fair value Provisional fair value
Net assets fair value of assets Net assets fair value of assets
acquired adjustments acquired acquired adjustments acquired
£m £m £m £m £m £m
Fixed assets – tangible 0.2 – 0.2 9.3 – 9.3
Stock ––– 0.2 – 0.2
Debtors ––– 10.6 – 10.6
Net debt ––– (1.8) – (1.8)
Creditors less than one year 0.9 – 0.9 (9.5) (12.6) (22.1)
Minority interest (0.9) – (0.9) (1.5) – (1.5)
Total assets 0.2 – 0.2 7.3 (12.6) (5.3)
Investment in associate transferred to subsidiary 0.6 – 0.6 1.9 – 1.9
Cash consideration 0.8 – 0.8 20.1 – 20.1
Total consideration 1.4 – 1.4 22.0 – 22.0
Capitalised goodwill 1.2 – 1.2 14.7 12.6 27.3
Notes:
1 Recognition of contractual liabilities and pension obligations in accordance with group accounting policies together with additional costs for
rebranding vehicles and equipment to comply with contractual requirements.
2 Recognition of liabilities in accordance with group accounting policies.
Adjustments made to the fair value of assets are provisional due to uncertainties as to the outcome of the issues to which they relate and
therefore they may be adjusted in 2004. 66 Securicor Annual Report and Accounts 2003
Notes to the consolidated accounts (continued)
21 Acquisitions and disposals of subsidiaries and businesses (continued)
(b) Disposals
The principal disposals in the year were:
1 The sale of the remaining 50% interest in the Distribution joint venture (“Distribution”).
2 The sale of Securicor Information Systems (“SIS”).
3 The sale of Securicor Cash Machine, the exit from operations in Qatar, Angola and Equatorial Guinea and the adjustment to sales proceeds 
in respect of previous Communications business disposals (“Other”).
Distribution SIS Other Total
£m £m £m £m
Net assets disposed
Intangible ﬁxed assets – (26.3) – (26.3)
Tangible ﬁxed assets – (3.6) (3.0) (6.6)
Investment in joint ventures (52.9) – (0.7) (53.6)
Stocks – (11.1) – (11.1)
Debtors – (13.0) (8.0) (21.0)
Creditors falling due within one year – 11.7 3.2 14.9
Creditor arising upon disposal (6.5) (0.3) – (6.8)
(59.4) (42.6) (8.5) (110.5)
Sale proceeds received (net of costs) 156.9 25.1 1.1 183.1
Write-back of goodwill previously written off through reserves (31.8) (13.0) – (44.8)
Proﬁt/(loss) on disposal 65.7 (30.5) (7.4) 27.8
22 Contingent liabilities
The company’s wholly-owned US subsidiary, Argenbright Security, Inc. (‘Argenbright’) was responsible for passenger checkpoint security screening
for two of the ﬂights involved in the terrorist atrocities of 11 September 2001, being the United Airlines ﬂight from Newark to San Francisco 
and the American Airlines ﬂight from Washington to Los Angeles. The hijacked planes performing these ﬂights crashed respectively in rural
Pennsylvania and into the Pentagon, Washington.
The directors believe that, in respect of those two ﬂights, Argenbright carried out its security screening services properly and in accordance 
with its contractual and regulatory duties and that it should have no liability for the losses that occurred subsequently. However, the events of
11 September were so extraordinary that it is impossible at this stage to state with certainty that no ﬁndings against Argenbright will be made.
Argenbright, which is a stand-alone limited liability corporation, is being sued and a number of lawsuits have been served upon it. Securicor plc
itself has been named in some of the lawsuits.
At 11 September 2001, Argenbright and the company had in place joint aviation liability insurance which included cover for acts of terrorism 
and which provided insurance cover of US$1bn for each of the two ﬂights referred to above.
The directors are conﬁdent that, if there were to be awards of damages against Argenbright, they would be below the limits of the 
available insurance.
Additionally, contingent liabilities exist in respect of agreements entered into in the normal course of business. Securicor Annual Report and Accounts 2003 67
Notes to the consolidated accounts (continued)
23 Operating lease commitments
2003 2003 2002 2002
Land and Land and
buildings Other buildings Other
£m £m £m £m
Commitments at 30 September 2003 on operating leases which expire:
Within one year 7.4 10.7 5.1 5.1
Between one and two years 6.5 8.0 4.0 7.6
Between two and ﬁve years 14.7 9.8 6.6 6.6
After more than ﬁve years 26.5 1.5 12.9 2.7
55.1 30.0 28.6 22.0
24 Capital commitments
2003 2002
£m £m
Contracted 1.3 3.6
25 Notes to the cash ﬂow statement
(a) Reconciliation of operating proﬁt/(loss) to operating cash ﬂows
2003 2002
£m £m
Operating proﬁt/(loss) 54.2 (15.2)
Depreciation 35.2 30.7
Amortisation of intangible assets – 0.5
Amortisation of goodwill 12.5 11.3
Exceptional impairment of intangible assets – 38.5
Exceptional impairment of goodwill – 33.0
(Proﬁt)/loss on sale of ﬁxed assets (0.3) 0.1
(Increase)/decrease in stocks (3.7) 0.5
Decrease in debtors 11.6 19.4
(Decrease)/increase in creditors (10.4) 7.6
(Decrease)/increase in provisions (2.2) 1.0
Net cash ﬂow from operating activities 96.9 127.4 68 Securicor Annual Report and Accounts 2003
Notes to the consolidated accounts (continued)
25 Notes to the cash ﬂow statement (continued)
(b) Analysis of cash ﬂow headings netted in the cash ﬂow statement
2003 2002
£m £m
Return on investments and servicing of ﬁnance
Interest received 2.4 0.9
Interest paid (15.2) (13.7)
Dividends paid to minority interest (1.0) (0.7)
Net cash outﬂow from returns on investments and servicing of ﬁnance (13.8) (13.5)
Capital expenditure
Purchase of tangible ﬁxed assets (53.4) (54.4)
Purchase of intangible ﬁxed assets (0.3) (13.3)
Purchase of own shares (2.4) –
Sale of tangible ﬁxed assets 16.4 10.8
Net cash outﬂow from capital expenditure (39.7) (56.9)
Acquisitions and disposals
Purchase of subsidiary undertakings (note 25e) (20.1) (52.3)
Purchase of interest in associated undertakings (7.0) –
Net cash balances acquired – 5.1
Sale of subsidiary undertakings 26.2 (3.4)
Sale of interest in joint venture undertakings 156.9 2.9
Net cash outﬂow from acquisitions and disposals 156.0 (47.7)
(c) Analysis of net debt
Other
2002 Cash ﬂow Acquisitions Exchange non-cash 2003
£m £m £m £m £m £m
Cash in hand and at bank 67.2 7.3 – (1.0) – 73.5
Overdrafts (4.0) (2.8) ––– (6.8)
Increase in cash in the year 4.5
Debt due after more than one year (226.7) 136.9 – (15.0) (1.8) (106.6)
Debt due within one year (28.2) (35.8) (1.8) – 1.8 (64.0)
Finance leases (6.8) 1.3 – 0.1 (5.2) (10.6)
Total (198.5) 106.9 (1.8) (15.9) (5.2) (114.5)
(d) Major non-cash transactions
During the year the group entered into ﬁnance lease arrangements in respect of assets with a total capital value at the inception of the leases 
of £5.2m. Securicor Annual Report and Accounts 2003 69
Notes to the consolidated accounts (continued)
25 Notes to the cash ﬂow statement (continued)
(e) Acquisition of subsidiaries
Geldnet Africa Other Total
£m £m £m £m
Fixed assets – tangible 7.6 1.5 0.2 9.3
Investment in associates (1.3) – (0.6) (1.9)
Stock 0.1 0.1 – 0.2
Debtors 9.8 0.8 – 10.6
Creditors (22.7) (0.3) 0.9 (22.1)
Borrowings due over one year (1.5) (0.3) – (1.8)
Minority interest – (0.6) (0.9) (1.5)
Net assets acquired (8.0) 1.2 (0.4) (7.2)
Goodwill 22.4 3.7 1.2 27.3
Cash outﬂow in respect of purchase of subsidiary undertakings 14.4 4.9 0.8 20.1
The subsidiary undertakings acquired during the year contributed £6.7m to the group’s net operating cash ﬂows, paid £0.7m in respect of interest
and taxation and utilised £1.7m for investing activities.
26 Related party transactions
Transactions with joint ventures and associated undertakings
All transactions with joint ventures and associated undertakings are in the normal course of business. Details of transactions and balances with
these related parties are set out below:
2003
Total
£m
Transactions
Turnover 18.3
Administration expenses 3.5
Dividends received 1.2
Balances
Debtors
Loans 5.8
Other debtors 0.3
Creditors
Other creditors 0.1
Related party turnover relates to fees of £17.2m charged to Bridgend Custodial Services Limited, fees of £0.6m charged to STC (Milton Keynes)
Limited and £0.5m charged to Securicor Distribution (all joint venture undertakings). Related party administration expenses relate to vehicle
leasing costs charged to the group by Securicor Vehicle Management Limited, a subsidiary of the Distribution joint venture. 
There are no transactions with other related parties.
Details of principal joint ventures and associated undertakings are shown in note 27. 70 Securicor Annual Report and Accounts 2003
Notes to the consolidated accounts (continued)
27 Signiﬁcant investments
The businesses set out below are those which were part of the group at 30 September 2003 and in the opinion of the directors signiﬁcantly
affected the group’s results and net assets during the year. Except as otherwise stated, the country of incorporation is England, the operations
are within the United Kingdom, the shares are in equity share capital and the businesses are wholly owned.
Subsidiary undertakings
Argenbright Security, Inc. (USA)
Securicor (South Africa) (Pty) Limited (South Africa)
Securicor Beheer BV (Netherlands)
Securicor Cash Services Limited
Securicor Cash Centres Limited
Securicor Justice Services Limited (formally Securicor Custodial Services Limited)
Securicor GTG GmbH (Germany)
Securicor Security Limited
Securicor Luxembourg SA (Luxembourg)
Securicor Security Services Ireland Limited (Ireland)
Securicor Sicherheitsdienste GmbH (Germany)
Securicor Hong Kong Limited (HK) 
Securicor Guarding Services (Hong Kong) Limited (HK)
Securicor Gurkha Services Limited (HK)
Securicor Aviation Limited
Securicor Canada Limited (Canada)
Geldnet BV (Netherlands)
Issued capital
Joint ventures and associated undertakings
Bridgend Custodial Services Limited (49.5% owned) £250,000
STC (Milton Keynes) Limited (49% owned) £10,000
Safeguards Securicor Sdn Bhd (Malaysia) (49% owned) MYR 40,100,000
Holding Companies
Securicor (1996) plc (100% directly owned subsidiary of Securicor plc)
Securicor Communications Limited
Securicor Holdings BV (Netherlands) 
Securicor International BV (Netherlands)
Securicor International Holdings SA (France)
Securicor International Limited
Securicor Group Limited
Securicor Asia Holdings Limited (British Virgin Islands) Securicor Annual Report and Accounts 2003 71
2003 2002
Notes £m £m
Fixed assets
Investments (a) 846.4 844.0
846.4 844.0
Current assets
Debtors (b) 8.4 260.5
8.4 260.5
Creditors – amounts falling due within one year
Borrowings (unsecured) (c) 66.5 15.0
Proposed dividends 8.6 8.7
Other 0.4 0.6
75.5 24.3
Net current (liabilities)/assets (67.1) 236.2
Total assets less current liabilities 779.3 1,080.2
Creditors – amounts falling due after more than one year
Borrowings (unsecured) (c) 100.9 224.2
Net assets 678.4 856.0
Capital and reserves
Called up share capital 19 31.3 31.3
Reserves (d) 647.1 824.7
Equity shareholders’ funds 678.4 856.0
Approved by the board on 4 February 2004
Nick Buckles Trevor Dighton
Director Director
Parent company balance sheet (including employee beneﬁt trust)
At 30 September 2003 72 Securicor Annual Report and Accounts 2003
Notes to the parent company balance sheet
Notes to the parent company balance sheet
(a) Investments
2003 2002
£m £m
Subsidiary undertakings
Shares at cost in Securicor (1996) plc
At 30 September 2002 844.0 844.0
Additions 77.5 –
Provision (77.5) –
As at 30 September 2003 844.0 844.0
Investment in own shares as at 30 September 2003 2.4 –
Total investments as at 30 September 2003 846.4 844.0
Investment in own shares comprises the cost of 2,602,300 ordinary shares held on the company’s behalf by an employee beneﬁt trust 
in respect of the Performance Share Plan for senior executives.
(b) Debtors
2003 2002
£m £m
Amounts owed by group undertakings 5.1 257.2
Other debtors 3.3 3.3
8.4 260.5
(c) Unsecured borrowings
The unsecured borrowings are at ﬂoating rates, including some ﬁnancial liabilities ﬁxed in accordance with the applicable bank reference rate
for periods of one month. The ﬁgures shown take into account interest rate swaps used to manage interest rate risk.
The total borrowings are in the following currencies:
2003 2002
£m £m
Sterling 15.0 167.1
Euro 81.3 –
SA rand 10.9 7.7
US dollar 60.2 64.4
167.4 239.2
The payment proﬁle of the unsecured borrowings is as follows:
2003 2002
£m £m
Repayable within one year 66.5 15.0
Repayable within one to two years – 34.7
Repayable within two to ﬁve years 100.9 189.5
167.4 239.2
There were no ﬁxed rate ﬁnancial liabilities and no ﬁnancial liabilities upon which no interest is paid either at 30 September 2003 or at
30 September 2002. Securicor Annual Report and Accounts 2003 73
(c) Unsecured borrowings (continued)
Undrawn committed facilities are as follows:
2003 2002
£m £m
Repayable within one year 54.9 –
Repayable within one to two years – 8.0
Repayable within two to ﬁve years 63.6 22.0
118.5 30.0
The fair value of the company’s ﬁnancial instruments equates to their book values. Fair values are determined by reference to market values,
where available, or calculated by discounting cash ﬂows at prevailing interest rates.
(d) Reserves
Capital
Proﬁt and redemption Share
loss account reserve premium Total
£m £m £m £m
At 1 October 2002 817.3 0.1 7.3 824.7
Retained deﬁcit (177.6) –– (177.6)
At 30 September 2003 639.7 0.1 7.3 647.1
As permitted by Section 230 of the Companies Act 1985, the company has not presented its own proﬁt and loss account. The (loss)/proﬁt for
the ﬁnancial year attributable to shareholders after dividends was £(168.2m) (2002: £7.1m).
Notes to the parent company balance sheet (continued) 74 Securicor Annual Report and Accounts 2003
2003 2002 2001 2000 1999
£m £m £m £m £m
Turnover 1,323.8 1,400.1 1,135.8 720.8 959.1
Proﬁt before taxation and exceptional items 50.3 56.4 31.3 47.3 32.9
Proﬁt/(loss) attributable to shareholders 44.5 (42.8) (27.6) 33.8 76.7
Fixed assets 414.1 473.1 463.3 261.4 206.5
Net assets 269.7 272.3 332.5 374.4 317.4
Normalised earnings per ordinary share (pence) before goodwill
amortisation, discontinued operations and exceptional items 7.3 7.1 6.0 6.2 3.6
Ordinary dividends per ordinary share (pence) 2.40 2.11 1.65 1.50 1.13
Return on net assets (%) 19 21 91410
Net debt/(cash) (£m) 114.5 198.5 183.1 (50.9) (88.4)
Net debt/equity (%) 42 73 55 (15) (28)
Group ﬁnancial record
(excluding (a) the results and net assets of BT Cellnet and the impact of development ﬁnance retained and (b) the proceeds of share issues)  Notice of meeting
Notice is hereby given that the ﬁfth Annual General Meeting of Securicor plc will be held at Ironmongers’ Hall, Barbican, London EC2Y 8AA 
on Thursday, 11 March 2004 at 11.00 am.
For the purpose of transacting the following Ordinary Business:
1 To receive and consider the ﬁnancial statements of Securicor plc for the year ended 30 September 2003 and the reports of the directors 
and auditors thereon.
2 To conﬁrm payment of the interim dividend and to declare a ﬁnal dividend.
3 To re-elect the directors who retire by rotation:
Mr Jonathan Kitchen (member of Remuneration Committee)
Mr Nigel Grifﬁths
4 To elect the director appointed since the last Annual General Meeting:
Lord Sharman
5 To re-appoint Baker Tilly as auditors of the company from the conclusion of this meeting until the conclusion of the next general meeting 
at which accounts are laid before the shareholders, and to authorise the directors to ﬁx their remuneration.
For the purpose of transacting the following Special Business:
6 As an Ordinary Resolution:
“That the Remuneration report contained in the ﬁnancial statements for the year ended 30 September 2003 is hereby approved.”
7 As a Special Resolution:
“That the company be generally and unconditionally authorised to make market purchases (within the meaning of Section 163(3) of the
Companies Act 1985) of ordinary shares of 5
15
⁄17p each in the capital of the company provided that:
(i) the maximum number of shares which may be purchased is 53,153,500;
(ii) the minimum price which may be paid for each share is 5
15
⁄17p;
(iii) the maximum price which may be paid for each share is an amount equal to 105% of the average of the middle market quotations for 
an ordinary share in the company as derived from The London Stock Exchange Daily Ofﬁcial List for the ﬁve business days immediately
preceding the day on which such share is contracted to be purchased; and
(iv) this authority shall expire at the conclusion of the Annual General Meeting of the company to be held in 2005 (except in relation to 
the purchase of shares the contract for which was entered into before the expiry of this authority and which might be executed wholly 
or partly after such expiry).”
Sutton Park House By Order of the Board
15 Carshalton Road Nigel Grifﬁths
Sutton Secretary
Surrey 4 February 2004
SM1 4LD
Notes:
(a) Every member entitled to attend and vote at the meeting may appoint another person as his/her proxy or proxies to attend and, on a poll,
to vote thereat instead of him/her and such proxy or proxies need not be a member or members. Forms appointing proxies must be
deposited at the ofﬁce of the company’s registrar by 11.00 am on 9 March 2004. The appointment of a proxy or proxies will not prevent 
a member from attending and voting at the annual general meeting should he or she decide to do so.
(b) Copies of the directors’ service contracts will be available for inspection at the registered ofﬁce from the date of the above notice until 
the date of the meeting and at the place of the meeting from 15 minutes prior to until close of the meeting.
(c) To have the right to attend and vote at the meeting (and also for the purposes of calculating how many votes a person may cast), a person
must have his or her name entered on the register of ordinary shares by no later than 11.00 am on 9 March 2004. Changes to entries 
on the register after this time shall be disregarded in determining the rights of any person to attend or vote at the meeting.
Securicor Annual Report and Accounts 2003 75 76 Securicor Annual Report and Accounts 2003
Results announcements
Interim results – late May
Final results – early December
Dividend payment
Interim paid – 30 September 2003
Final payable – 5 April 2004
Annual General Meeting
11 March 2004
Registered ofﬁce
Sutton Park House
15 Carshalton Road
Sutton
Surrey SM1 4LD
Telephone: 020 8770 7000
Registrars and transfer ofﬁce
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Telephone: 0870 162 3100
Fax: 020 8639 2342
Email: ssd@capitaregistrars.com
Auditors
Baker Tilly
Chartered Accountants
Registered Auditors
2 Bloomsbury Street
London WC1B 3ST
Financial PR consultants
Citigate Dewe Rogerson
3 London Wall Buildings
London Wall
London EC2M 5SY
Stockbrokers
Cazenove & Co. Limited
20 Moorgate
London EC2R 6DA
Deutsche Bank AG London
Winchester House
Great Winchester Street
London EC2N 2DB
Merchant bankers
Morgan Stanley & Co. Limited
25 Cabot Square
Canary Wharf
London E14 4QA
Securicor web-site address
www.securicor.com
Financial calendar and corporate addresses Contents
Vision 1
Financial highlights 1
Product review 2
Chairman’s statement 6
Chief Executive’s review 8
Group at a glance 11
Regional review 12
Corporate social responsibility 20
Financial review 22
Board of directors 26
Report of the directors 29
Corporate governance report 32
Remuneration report 34
Directors’ responsibilities 39
Independent auditor’s report to the 
members of Securicor plc 40
Consolidated proﬁt and loss account 41
Consolidated balance sheet 42
Consolidated cash ﬂow statement 43
Statement of total recognised gains and losses 44
Note of historical cost proﬁts and losses 44
Reconciliation of movement in equity shareholders’ funds 44
Statement of accounting policies 45
Notes to the consolidated accounts 47
Parent company balance sheet 71
Notes to the parent company balance sheet 72
Group ﬁnancial record 74
Notice of meeting 75
Financial calendar and corporate addresses 76
This report is printed on Phoenixmotion paper made in Germany from 100% Totally Chlorine Free ﬁbres 
from actively sustained forests. The paper mill holds the Nordic Swan Award for environmental practices.
Designed and produced by Merchant with Carrow Design. Printed by St Ives Westerham Press.  Securicor plc
Sutton Park House
15 Carshalton Road
Sutton
Surrey SM1 4LD, UK
Telephone: +44 (0)20 8770 7000
Registered no. 3811216
www.securicor.com
Annual Report and Accounts Year ended 30 September 2003
Securicor plc
Annual Report and Accounts 2003
The international security
solutions group