Interim Results

Reliance Security Group PLC
5 December 2001



                         RELIANCE SECURITY GROUP PLC

             INTERIM RESULTS FOR THE 6 MONTHS TO 26 OCTOBER 2001



  * Turnover up 28% to £107.6m (2000: £83.7m)

  * Profit before tax of £4.5m (2000: £3.9m), increase of 16%

  * Earnings per share up 12%

  * Operating cashflow £6.6m (2000: £2.2m)

  * Dividend increase to 3.15p per share (2000: 2.8p), up 12.5%



Commenting on the results, the Chairman, Brian Kingham, said:

'The Group has made excellent progress in the first half, with turnover,
profits and operating cash flow at record levels. This results from investment
over the last few years in geographic expansion, specialist skills, market
segments and complementary businesses. Building on the achievements of the
first half, we anticipate continued growth.'


Notes to Editors

Reliance is an established market leader in the provision of contract
security, facilities management, and support services. Reliance employs over
10,000 people from a network of offices throughout the UK.



For further information:

Brian Kingham, Chairman                       020 7730 9716

Geoff Haslehurst, Group Managing Director     01895 205002




CHAIRMAN'S STATEMENT

                         CHAIRMAN'S INTERIM STATEMENT



Results

The Group has made excellent progress in the first half, with turnover,
profits and operating cash flow at record levels. Our markets in security,
electronic surveillance, facilities management and support services have
continued to grow. Turnover for the six months to 26 October 2001 increased by
28.5% to £107.6m (2000 : £83.7m), pre-tax profits rose by 15.9% to £4.5m (2000
: £3.9m) and earnings per share grew by 12.3% to 13.7p (2000 : 12.2p). Net
cash generated from operations was £6.6m (2000 : £2.2m).

Security Services

In the period under review, for the most part unaffected by the tragic events
of September 11, we saw record levels of new business. Our emphasis on
specialist markets and providing solutions- based higher value-added services
has resulted in an increase in the average value and duration of contracts won
in the first half of this year. We mobilised the five year, £50m contract with
BAe Systems announced in June and, in October, we commenced a contract with
Deutsche Bank, covering 32 locations and valued at £5m per annum. We are
delighted that our electronic surveillance business has won the 2001 Security
Excellence Awards for 'best security installer' and 'best customer care
initiative'. We continue to invest in management and infrastructure and to
derive benefits from our earlier investment in both.


In November, the USA Government enacted legislation to nationalise airport
security. The practical consequences and timing of this legislation are yet to
be determined and the impact on the aviation security business of Command
Security Corporation, in which the Group has an effective 37% stake, is not
yet clear. The legislation will not affect the non-airport businesses of
Command or any of the Group's other businesses. Command's contribution to the
Group's pre-tax profit in the first half of this year was not material. The
carrying value of the Group's investment in Command as at 28 October 2001 was
£4.4m. We expect to complete our assessment of the impact over the next few
months.

Facilities Management

The facilities management contract with BT, in which we provide services to
more than 2000 locations, was fully mobilised in the period. Our relationship
with BT has offered the opportunity to extend the current FM contract
following the sale of the majority of BT properties to Land Securities/

Trillium. We are working towards a new longer term contract.

Our specialist FM and support services business focussed on the criminal
justice system, has enjoyed continued success. In August, we announced we had
won a PFI contract, in partnership with Ballast plc, to design, build and
provide security and facilities management and support services for the Police
Service in a ground breaking, £90m, 30 year contract. We have won new support
services contracts with the West Mercia Police Authority and the Merseyside
Magistrates Courts. In October, in settlement of an action brought by us
against GSSC for breach of contract, we took over the running of the offender
electronic monitoring services contract in the south of England for the Home
Office.





Dividend

The directors are pleased to declare an interim dividend of 3.15p per share
(2000 : 2.8p), payable on 25 January 2002 to shareholders on the register on 4
January 2002.

Outlook

We expect continued growth in our markets for security, facilities management
and support services. Our earlier and continuing investment in building
competitive strength, focusing on specialist skills and market segments and
our investment in new complementary businesses provides significantly more
capacity for growth. Building on the achievements of the first half, we
anticipate continued progress.






Brian Kingham, Chairman

December 2001




Independent Review Report

to Reliance Security Group plc



Introduction

We have been instructed by the company to review the financial information for
the six months ended 26 October 2001 which comprises summarised profit and
loss account, statement of total gains and losses, summarised balance sheet
information as at 26 October 2001, summarised cash flow statement and
associated notes. We have read the other information contained in the interim
report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.



Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the
Listing Rules of the Financial Services Authority which require that the
accounting policies and presentation applied to the interim figures should be
consistent with those applied in preparing the preceding annual accounts
except where any changes, and the reasons for them, are disclosed.



Review work performed

We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of group management and
applying analytical procedures to the financial information and underlying
financial data and based thereon, assessing whether the accounting policies
and presentation have been consistently applied unless otherwise disclosed. A
review excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially less in scope than
an audit performed in accordance with United Kingdom Auditing Standards and
therefore provides a lower level of assurance than an audit. Accordingly, we
do not express an audit opinion on the financial information.



Review Conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 26 October 2001.



Arthur Andersen

Chartered Accountants and Registered Auditors

London

5 December 2001


Group Profit and Loss Account
for the six months ended 26 October 2001
                                                                Restated
                                                     Unaudited          Audited
                                               Six months Six months       Year 
                                                       to         to         to
                                               26 October 27 October   27 April
                                                     2001       2000       2001
                                         Notes      £'000      £'000      £'000

Group turnover                                    107,611     83,713    179,794

Cost of sales                                    (88,067)   (67,843)  (145,476)

Gross profit                                       19,544     15,870     34,318

Administrative expenses                          (15,113)   (12,141)   (25,238)

Group operating profit                              4,431      3,729      9,080

Share of associates' operating profit                 386          0        942

Profit on ordinary activities before                4,817      3,729     10,022
finance charges

Interest receivable (Group)                            12        124        166
Interest payable
Group                                               (292)          0      (212)
Associates                                           (73)          0       (60)

Profit on ordinary activities before                4,464      3,853      9,916
taxation

Tax on profit on ordinary activities              (1,384)    (1,098)    (3,196)

Profit on ordinary activities after                 3,080      2,755      6,720
taxation

Dividends                                           (707)      (646)    (2,665)

Retained profit for the period             4        2,373      2,109      4,055
transferred to reserves

Earnings per share
Basic                                      3        13.7p      12.2p      29.7p
Diluted                                    3        13.5p      12.1p      29.3p
Dividend per share                                  3.15p       2.8p      11.8p

Shares issued and fully paid                   23,073,200 23,059,768 23,066,768

There were no unrecognised gains or losses in the period under review.



Group Balance Sheet
as at 26 October 2001
                                                                 Restated
                                                       Unaudited        Audited
                                                 26 October 27 October 27 April
                                                       2001       2000     2001
                                           Notes      £'000      £'000    £'000
Fixed Assets
Intangible assets - Goodwill                          2,495      1,312    1,847
Tangible assets                                       7,099      5,604    6,585
Investments                                          12,747      1,429   11,906
                                                     22,341      8,345   20,338
Current Assets
Stocks and work in progress                           1,485      1,451    1,072
Debtors                                              32,197     26,713   29,892
Cash at bank and in hand                     5        3,804      6,955        7
                                                     37,486     35,119   30,971

Creditors: amounts falling due within one          (30,132)   (23,746) (29,025)
year

Net current assets                                    7,354     11,373    1,946

Total assets less current liabilities                29,695     19,718   22,284

Creditors: amounts falling due after
more than one year                                  (5,824)      (210)    (821)

Net Assets                                           23,871     19,508   21,463

Capital and reserves
Called up share capital                               1,154      1,153    1,153
Share premium account                                 1,887      1,844    1,853
Revaluation reserve                                     152        152      152
Profit and loss account                              20,678     16,359   18,305

Equity shareholders' funds                   4       23,871     19,508   21,463




Group Cash Flow Statement
for the six months ended 26 October 2001
                                                          Unaudited    Audited
                                                         Six      Six     Year 
                                                      months   months  
                                                       to 26    to 27    to 27 
                                                     October  October    April
                                                        2001     2000     2001
                                              Notes    £'000    £'000    £'000

Net cash inflow from operating activities       6      6,642    2,165    6,544

Returns on investment and servicing of finance
Interest received                                         12      142      166
Interest paid                                          (218)        0    (135)
Interest element of finance lease repayments            (31)     (18)     (45)

Net cash (outflow) / inflow from returns on            (237)      124     (14)
investment and servicing of finance

Taxation
UK corporation tax paid                              (1,020)    (732)  (2,743)

Capital expenditure and financial investment
Purchase of tangible fixed assets                    (1,042)    (423)  (1,304)
Purchase of own shares by ESOP                         (663)     (95)    (503)
Purchase of fixed asset investments                        0    (409)  (5,373)
Sale of tangible fixed assets                              9       61       94

Net cash outflow from capital expenditure and        (1,696)    (866)  (7,086)
financial investment

Acquisitions
Purchase of business                                   (305)        0        0
Purchase of subsidiary undertaking                         0        0    (593)
Investment in associates                                   0        0  (4,521)
Net cash outflow from acquisitions                     (305)        0  (5,114)

Equity dividends paid                                (2,019)  (1,845)  (2,489)

Net cash inflow / (outflow) before financing           1,365  (1,154) (10,902)

Financing
Issue of ordinary share capital                           35        0        9
Increase in short term borrowings                          0        0      504
Capital element of finance lease repayments            (155)     (63)    (224)

Net cash (outflow) / inflow from financing             (120)     (63)      289

Increase / (decrease) in cash in the period            1,245  (1,217) (10,613)




Notes to the Accounts

1 Preparation of interim report
  The interim report has been prepared on the basis of the accounting policies
  set out in the statutory accounts of the group for the year ended 27 April    
  2001, with the exception that
  FRS 19 'Deferred Tax' has been adopted for the first time in this
  report.

  The effect of adopting FRS 19 is to recognise a deferred tax asset as at 26
  October 2001 of £384,000 (27 October 2000 - £671,000; 27 April 2001
  - £364,000)

2 Taxation
  Corporation tax for the six months to 26 October 2001 has been
  calculated at the rate of 30% (2000: 30%).

3 Earnings per share
  The basic and diluted earnings per share for the six months to 26
  October 2001 have been calculated based on the profit after tax and on the
  weighted average number of shares in issue during the period less the weighted
  average number of shares held by the ESOP trust of 22,509,757 and 22,818,235
  respectively.

4 Reconciliation of movement in equity shareholders' funds

                                                                  Restated
                                               26 October 27 October   27 April
                                                     2001       2000       2001
                                                    £'000      £'000      £'000
  Profit on ordinary activities after               3,080      2,755      6,720
  taxation
  Dividends                                         (707)      (646)    (2,665)
                                                    2,373      2,109      4,055
  New share capital subscribed                         35          0          9
  Net movement in equity shareholders' funds        2,408      2,109      4,064
  Opening equity shareholders' funds               21,463     17,399     17,399
  (restated)

  Closing equity shareholders'                     23,871     19,508     21,463
  funds

5 Analysis of the balances of cash and cash equivalents as shown in the balance
  sheet

                                               26 October 27 October   27 April
                                                     2001       2000       2001
                                                    £'000      £'000      £'000
  Cash at bank and in hand                          3,804      6,955          7
  Bank overdrafts                                       0          0    (2,448)

  Cash and cash equivalents                         3,804      6,955    (2,441)

Notes to the Accounts (continued)

6 Reconciliation of operating profit to net cash inflow from
  operating activities
                                               26 October 27 October   27 April
                                                     2001       2000       2001
                                                    £'000      £'000      £'000
  Operating profit                                  4,431      3,729      9,080
  Depreciation charges                                801        680      1,380
  Loss / (profit) on the sale of fixed                (1)        (2)          4
  assets
  Amortisation of goodwill                             74         36         77
  (Increase) in stocks                              (413)      (928)      (549)
  (Increase) in debtors                           (2,918)    (4,445)    (7,931)
  Increase in creditors                             4,668      3,095      4,483

  Net cash flow from operating activities           6,642      2,165      6,544

7 Analysis and reconciliation of net debt

                                    27 April    Cash flow   Non-cash 26 October
                                        2001               movements       2001
                                       £'000        £'000      £'000      £'000
  Cash at bank and in hand                 7        3,797          0      3,804
  Overdrafts                         (2,448)        2,448          0          0
                                     (2,441)        6,245          0      3,804

  Debt due within one year           (1,471)            0          0    (1,471)
  Bank loan                                0      (5,000)          0    (5,000)
  Finance Leases                     (1,185)          155       (65)    (1,095)

                                     (2,656)      (4,845)       (65)    (7,566)
  Net debt                           (5,097)        1,400       (65)    (3,762)

8 Financial information
  The financial information for the periods ended 26 October 2001 and 27
  October 2000 are unaudited and do not constitute full accounts within the
  meaning of the Companies Act 1985. The financial information for the year
  ended 27 April 2001 has been extracted from the full accounts for that year
  which has been delivered to the Registrar of Companies. The auditors report
  was unqualified and did not contain statements under Section 237 (2) or (3)
  of the Companies Act 1985.

9 Distribution
  A copy of the financial information will be sent to all
  shareholders. Copies are available to the public from the Company's registered
  office at Boundary House, Cricketfield Road, Uxbridge, Middlesex, UB8 1QG.