Final Results

Reliance Security Group PLC
28 June 2000


                          Reliance Security Group plc
                      Preliminary announcement of Results
                       for the year ended 30 April 2000
                                       
      Turnover up 17% to £153m (1999 : £131m)
      Profit before tax up 20% to £8.5m (1999 : £7.1m)
      Earnings per share up 22% to 25.08p (1999: 20.59p)
      Proposed final dividend of 8p, giving full year 10.5p (1999 : 9.0p)
      Cash balances at the year end of £6.6m
      
      
Commenting on the results Brian Kingham, Chairman, said

Record results made possible by sustained investment and the steady building
of infrastructure and skills which have enabled us to develop new businesses
and income streams.

Our markets - security, support services and facilities management - are
growing at a healthy level.

We continue to invest in new markets and the development of innovative, high
quality services and products.

The Future

We occupy a leading position in three growing and complementary markets which
are estimated to be worth more than £5 billion per annum. We have shown strong
capacities over the long term in developing high performance management teams
and in providing innovative, quality product offerings in specialist market
segments.  We continue to invest in building market share and in the quality
of earnings and diversity of our businesses.  Cash generation, in spite of
continued investment, remains strong.  We enjoy a wide range of development
options which we are continuing to pursue.  The year has started well and the
board expect to see satisfactory growth in the year ahead.

For further information contact:

Brian Kingham, Chairman                 020 7730 9716
Geoff Haslehurst, Finance Director      01895 205 000


Notes to Editors:  Reliance is an established market leader in the provision
of contract security, facilities management and support services.  Reliance
employs over 8,000 people from a network of offices throughout the U.K.


                          RELIANCE SECURITY GROUP PLC
      
CHAIRMAN'S STATEMENT 1999/2000

RESULTS
Turnover for the year to 30 April 2000 increased by 17% to £153m (1998/99
£131m).  Profit before tax for the year rose by 20% to £8.5m (1998/99 £7.1m)
and earnings per share rose by 22% to 25.08p (1999 20.59p).  Net cash balances
at the year end were £6.6m.

REVIEW OF THE YEAR

I am delighted once again to report record results made possible by sustained
investment over the last few years and the steady building of infra-structure
and skills which have enabled us to develop new businesses and income streams.

Our markets, security, support services and facilities management, are growing
at a healthy level.  Competition is highly fragmented and we have strengthened
our position and market share in each segment.  We have broadened our appeal
through providing business solutions dependant on specialist skills and
technology and giving value added services which are highly customer specific.

Security Services
Our security businesses enjoyed an eventful year though I take comfort that
none of the more colourful media fears of millennium IT failure materialised.
Further regulation of employment conditions came into effect which will
undoubtedly help in moderating the excessively low wage competition we have
fought for so long.  We expect material changes in the security market over
the next decade, driven by rising cost and customer desire for greater scope
and effectiveness.  We are in no doubt that the challenge for us is in
enabling our people to be more valuable through better systems, through
training, higher levels of skill and greater specialism and knowledge - all
key to the 'Reliance Difference'.   Our investment, now over £2m, in
re-engineering our IT capabilities will greatly improve work processes
minimising administrative and clerical effort and increasing that which adds
most value.  With extended use of CCTV, electronic and electro mechanical
access control and remote surveillance, we will extend our reach and
effectiveness and thus the value of our people.

We continue to place our major emphasis and management resource at the point
of delivery of services to customers, strengthening and extending our local
management teams and facilities.  Complementing the growth in our office
network and the steady progress of offices opened last year at Edinburgh,
Norwich and Exeter, we opened an office at Preston.  Our current new business
development programmes, which have successfully delivered long term growth,
have operated for more than a decade.  This year we have re-organised and
strengthened these programmes; new processes, better IT applications and the
formation of a new team of our well experienced customer service people have
renewed our competitive edge.

Focusing our depth of knowledge and experience of particular industry sectors
into specialist management teams has enabled us to offer more benefits to our
customers.  Our retail team won important new contracts with Tesco, Somerfield
and the Co-op and mobilised in record time the security for 130 Iceland
stores.  We believe we are the largest UK provider of shopping centre
security, again this year extending our depth of involvement by winning high
quality contracts at the Arndale Centre Manchester; Shopping City, Salford;
Priory Meadows, Hastings and Guildhall, Exeter.  In addition, we expanded our
business in the financial services, pharmaceuticals and distribution sectors. 
We were delighted to win contracts in the new technology sector with
Amazon.com, Planet Online, Computershare and GlobalCenter Inc.

The scale and use of private property with open public access and the role of
the Police has changed, generating new and different demands for safety,
security and related services to the public.  Representative of these special
needs, we welcomed Canary Wharf, London, as a new customer.  With more than
4.5 million sq. ft. of offices and retail space and 23,000 people at work and
leisure, this is an exciting environment in which to innovate and develop
services and facilities which add a new dimension of care for the owners,
tenants and the public.

PatrolNet, our national network of rapid response vehicles has made strong
progress growing by 40% this year.  The partnership provisions of the Crime
and Disorder Act 1998 opens a broad range of new tasks and markets for this
service.  The success of PatrolNet in Business Watch schemes like Trafford
Park, Manchester, where crime has been reduced is compelling.  School Watch
and Campus Watch offer further opportunities for a highly flexible means of
meeting a wide range of security and estate management needs.

Reliance Custodial Services Limited, established in 1996 to provide prisoner
custody, offender electronic tagging and other services to the criminal
justice system, has made excellent progress winning new customers for the
advanced secure task management capacities we have developed over the last 4
years.  In partnership with Charterhouse Projects Investments Ltd. and the
construction company Ballast Wiltshier PLC, we are bidding for new PFI design,
build and operate projects for the Police service.

I regret to report that our partnership with GSSC of Minneapolis, USA to
provide electronic offender tagging for the Home Office in the South of
England has been terminated.  Notably high standards were provided in this
pioneering contract which gave a new magnitude of flexibility, dedicated care
and economy to the criminal justice system.  The circumstances of the
breakdown of this partnership are unacceptable to us and we have instructed
our Solicitors to take the appropriate legal action against GSSC.

The government's 'best value' initiative for the public sector creates new
opportunities for working in genuine partnership with many more local and
national government departments and agencies.  Renewed interest in the most
cost effective allocation of resources and buying in from the private sector
new ideas, greater flexibility and focused expertise provides a significant
growth opportunity for the group.
                       
Regulation of Private Security
Our current information is that the government may introduce a draft
bill to regulate the private security industry this summer.   We support
regulation and are working with the British Security Industry
Association to help ensure the flexibility which the government's better
regulation task force called for in response to the White Paper.

We believe regulation could help create a greater emphasis on quality of
service and restrain irresponsible operators who depend on reduced wages
and little training to provide excessively low price competition.
Licensing would provide a helpful measure of transparency, improve
public confidence and promote wider private security participation in
the nature of partnerships envisaged in the Crime and Disorder Act,
1998.

We voluntarily submit our operations at every level to frequent
inspection by the independent Inspectorate of the Security Industry.  We
are also subject to regular operational audits under our ISO 9000
quality certification.  We welcomed this year the additional commitments
in relation to training, active consultation and sharing of business
objectives with our employees which we have entered into under our
Investors In People accreditation.   Our electronic installations are
inspected by the National Approval Council for Security Systems.

Electronic Surveillance
It is a year since the merger to create Reliance High Tech. Ltd and it
has been a demanding and eventful time for everyone in the new company.
We have rationalised the two businesses whilst driving forward product
development and sales.  As expected, we have advanced our product and
technical capabilities gaining a new dimension in value to customers.
Working with English Heritage, we installed new surveillance for Hampton
Court Palace meeting the unique design needs of this ancient monument.
The biometric finger print access readers installed in a high security
global communications switching centre and the intrinsically safe
intruder system (BASEEFA approved) for a British Aerospace explosive
production facility are examples of higher value and more complex
electronic systems which differentiate Reliance in what is a highly
competitive market.  We have seen a growing awareness of the need for
imaginative security packages of electronic and manpower components
providing total security solutions.

FM and Integrated Support Services
Reliance Integrated Services Limited, our facilities management and
wider support services company, has seen strong growth, with potential
new business this year with leading private sector companies with a
projected annual turnover value in excess of £40m.  We announced in the
final quarter the success of our joint venture with Carillion plc and
Haden Building Management  in achieving preferred supplier status for
the delivery of facilities management services to British Telecom's
estate of 8500 buildings.  This is probably the largest private sector
total facilities management contract yet awarded.  It breaks new ground
in its imaginative partnership approach to the management and delivery
of services and may prove to be the model for the FM industry long into
the future.

The growth in demand for facilities management, support services and
outsourced business processes is estimated to be more than 20% p.a.  We
plan to increase our investment in this business including creating
capacity to offer customers a new dimension in IT and IS support.  Our approach
to this market will be one of constant development of features which  move our
product offering  up the value added chain.

People
It is our people who make the 'Reliance Difference' and I take this
opportunity to thank warmly everyone at Reliance for their enthusiasm,
outstanding commitment and hard work.  The fiercely competitive
environment in which  our businesses operate calls for professionalism,
unremitting effort and a high degree of care and dedication.  The work
demands an uncommon degree of tact and patience and, on occasions,
considerable courage.  It is greatly heartening when this is publicly
recognised as with the Royal Humane Society award this year to security
officer Hughie Corr for saving the life of a member of the public.
Echoing this dedication, I felt privileged in the presence of the
management team to make a presentation to security officer George Kamara
to mark his 25 years of service with Reliance.

After independent assessment, winning Investors in People accreditation
this year was a proud moment for everyone in Reliance and the
culmination of years of work.   The IIP Standard powerfully affirms our
belief in enabling our people to improve their knowledge and skills.
The standard provides a framework for improving business performance and
competitiveness through a planned approach to setting and communicating
business objectives and developing our people to meet these objectives.
The result is that what our people can do, and are motivated to do,
matches our customers' needs.  Our value to customers is a direct and
constant reflection of our ability to learn, to change and to
continuously improve work practices and efficiency.

We increased the number of employees by 15% in spite of the record low
level of unemployment and difficult recruitment conditions.   I am
pleased to report that, contrary to the usual trend at times of full
employment, our employee turnover fell slightly in the year.  Our
success in recruiting and retaining high calibre people is never taken
for granted. In-house training provision was increased by more than 50%
for the second year.  In addition to basic job training, more than 250
skills' advancement courses were carried out involving almost a quarter
of our employees.  All managers received special training in our
'Reliance Difference' continuous improvement techniques and all contract
managers participated in our new 'Passion for Customers' initiative.
More than 30% of management vacancies were filled by internal promotions

Dividend
The directors are proposing a final dividend of 8.0p making a total of
10.5p (1998/99 final dividend of 6.8p, total 9.0p) subject to approval
at the AGM on 13 September 2000 and will be payable on 18 September 2000
to those shareholders on the register of members on 18 August 2000.

The Future
We occupy a leading position in three growing and complementary markets
which are estimated to be worth more than £5 billion per annum. We have
shown strong capacities over the long term in developing high
performance management teams and in providing innovative, quality
product offerings in specialist market segments.   We continue to invest
in building market share and in the quality of earnings and diversity of
our businesses.  Cash generation, in spite of continued investment,
remains strong.  We enjoy a wide range of development options which we
are continuing to peruse. The year has started well and the board expect
to see satisfactory growth in the year ahead.

BRIAN KINGHAM

Chairman
June 2000

 
Reliance Security Group plc

Preliminary announcement of Group profit and loss account (Unaudited)
for the financial year ended 28 April 2000


                                                            2000       1999
                                                           £'000      £'000
                                                                           
Turnover                                                 152,888    130,969

Cost of sales                                          (123,498)  (105,769)

Gross profit                                              29,390     25,200

Administrative expenses                                 (21,276)   (18,589)

Operating profit                                           8,114      6,611

Interest receivable                                          458        548
Interest payable                                             (67)      (90)

Profit on ordinary activities before                       8,505      7,069
taxation

Tax on profit on ordinary activities                     (2,840)    (2,403)
                                                                           
Profit for the financial year                              5,665      4,666

Dividends                                                (2,378)    (2,041)

Retained profit for the financial year                                     
transferred to reserves                                    3,287      2,625
                                                                           
Earnings per share                                                         
Basic                                                     25.08p     20.59p
Diluted                                                   24.81p     20.53p
                                                                

All material operations in the group continued throughout both financial
years and no material operations were acquired or discontinued.

There were no recognised gains or losses other than those recognised in
the profit and loss account.


Reliance Security Group plc

Preliminary announcement of Group balance sheet (Unaudited)
for the financial year ended 28 April 2000


                                                             2000      1999
                                                            £'000     £'000
                                                                           
Fixed Assets                                                               
Intangible assets - Goodwill                                1,348         -
Tangible assets                                             5,920     4,823
Investments                                                   925       527
                                                            8,193     5,350
Current assets                                                             
Stocks                                                        523       198
Debtors                                                    21,597    16,606
Cash at bank and in hand                                    8,172     9,729
                                                           30,292    26,533
Creditors: amounts falling due within one                (21,350)  (18,029)
year
                                                                           
Net current assets                                          8,942     8,504
                                                                           
Total assets less current liabilities                      17,135    13,854
                                                                           
Creditors: amounts falling due after more                   (272)     (373)
than one year
                                                                           
Net assets                                                 16,863    13,481
                                                                           
Capital and reserves                                                       
Called up share capital                                     1,153     1,149
Share premium account                                       1,844     1,753
Revaluation reserve                                           152       152
Profit and loss account                                    13,714    10,427
                                                                           
Equity shareholders' funds                                 16,863    13,481



Reliance Security Group plc

Preliminary announcement of Group cash flow statement (Unaudited)
for the financial year ended 28 April 2000


                                                             2000      1999
                                                            £'000     £'000
                                                                           
Net cash inflow from operating activities                   5,588     9,745
                                                                           
Returns on investment and servicing of finance                             
Interest received                                             433       552
Interest paid                                                (12)      (16)
Interest element of finance lease repayments                 (30)      (66)
Net cash inflow from returns on investment and                391       470
servicing of finance
                                                                           
Taxation                                                                   
UK corporation tax paid                                   (3,193)   (2,134)
                                                                           
Capital expenditure and financial investment                               
Purchase of tangible fixed assets                         (2,700)   (2,024)
(Purchase)/sale of own shares by ESOP                       (398)        23
Sale of tangible fixed assets                                 970       143
Net cash outflow from capital expenditure and                              
financial investment                                      (2,128)   (1,858)
                                                                           
Acquisitions and disposals                                                 
Purchase of subsidiary undertaking                          (550)         -
                                                                           
Equity dividends paid                                     (2,097)   (1,773)
                                                                           
Net cash (outflow)/inflow before financing                (1,989)     4,450
                                                                           
Financing                                                                  
Issue of ordinary share capital                                95        57
Increase in short term borrowings                             417         -
Capital element of finance leases                            (59)     (298)
Net cash inflow/(outflow) from financing                      453     (241)
                                                                           
(Decrease)/Increase in cash in the financial              (1,536)     4,209
year                                                             


Reliance Security Group plc

Preliminary announcement of Notes to the accounts (Unaudited)
for the financial year ended 28 April 2000

The figures for the year ended 28 April 2000 are unaudited and do not
constitute statutory accounts within the meaning of section 240 of the
Companies Act 1985. The results for the year to 30 April 1999 have been
extracted from the full accounts for that year which have been delivered
to the Registrar of Companies and on which the auditors gave an unqualified
report.

Basis of preparation of the accounts
The group accounts, which have been prepared in accordance with applicable
accounting standards and under the historical cost convention, as modified  by
the revaluation of land and buildings, incorporate the accounts of the company
and its subsidiaries.  The financial years of all group companies are the 52
or 53 weeks up to the Friday nearest the accounting reference date of 30
April.  The accounting policies used in the presentation of the group's
financial statements are consistent with those applied in prior years.

Dividends
In addition to the interim dividend of 2.5p (1999: 2.2p), the directors
recommend a final dividend of 8.0p (1999:  6.8p)  which, subject to approval 
at the Annual General Meeting on 13 September 2000, will be payable on 18th
September 2000 to those shareholders on the register of members on 18th August
2000.

Earnings per Share Earnings per share have been calculated on the profit
attributable to shareholders on ordinary activities after taxation of
£5,665,000 (1999:£4,666,000).  The basic and diluted earnings per share have 
been calculated in accordance with FRS14 using the profit after tax and on
the weighted average number of ordinary shares in issue during the year
less shares held by the ESOP trust.

Reconciliation of operating profit to net cash inflow from operating
activities
                                                           2000        1999
                                                          £'000       £'000
Operating profit                                          8,114       6,611
Depreciation charges                                      1,101       1,707
Amortisation of goodwill                                     60           -
Profit on sale of fixed assets                            (213)        (45)
(Increase) in stocks                                      (264)        (25)
(Increase) in debtors                                   (4,422)     (1,194)
Increase in creditors                                     1,212       2,691
                                                          5,588       9,745

Analysis and reconciliation of net debt
                                                                           
                                                                           
                             1 May 1999   Cash flow                28 April
                                  £'000       £'000                    2000
                                                                      £'000
                                                                           
Cash at bank and in               9,729     (1,557)                   8,172
hand
Overdrafts                         (21)          21                       -
                                  9,708     (1,536)                   8,172
Debt due within one               (550)       (417)                   (967)
year
Finance leases                    (647)          59                   (588)
                                (1,197)       (358)                 (1,555)
                                                                           
Net funds                         8,511     (1,894)                   6,617