G4S Annual Report and Accounts 2011

Governance Financial statements Shareholder information
21 Investment in joint ventures
At the year end the group owned 59% of the equity of Bridgend Custodial Services Ltd. The group jointly shares operational and financial control over
the operations and is therefore entitled to a proportionate share of its results, which are consolidated on the basis of the equity shares held. The group’s
correctional facilities in South Africa are under a similar arrangement other than that the group’s holding is 20%.
During 2011, the group sold its 50% share of the equity in STC (Milton Keynes) Ltd. Up until the date of disposal, its results were also consolidated on the
basis of equity shares held.
The results of each of the jointly controlled operations are prepared in accordance with group accounting policies. Amounts proportionately consolidated
into the group’s financial statements are as follows:
Results
2011
2010
£m
£m
Income 44 55
Expenses (41) (52)
Profit after tax 3 3
Balance sheet
2011
2010
£m
£m
Assets
Non-current assets 22 38
Current assets 7 8
29 46
Liabilities
Current liabilities (10) (10)
Non-current liabilities (14) (32)
(24) (42)
Net assets 5 4
22 Investment in associates
Total assets 31 19
Total liabilities (22) (9)
Net investment in associates 9 10
Revenue 60 79
Profit for the year 3 5
2011
£m
2010
£m
The net investment and results presented above largely relate to Space Gateway Support LLC and MW-All Star, both in the USA, in which the group holds
investments of 46% and 49% respectively. The results of both associates are reported in the North America security segment.
23 Inventories
Raw materials 16 16
Work in progress 13 13
Finished goods including consumables 94 55
Total inventories 123 84
2011
£m
2010
£m
24 Investments
Investments comprise primarily listed securities of £44m (2010: £43m) held by the group’s wholly-owned captive insurance subsidiaries stated at their fair
values based on quoted market prices. Use of these investments is restricted to the settlement of claims against the group’s captive insurance subsidiaries.
G4S plc
Annual Report and Accounts 2011
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