G4S Botswana, the Botswana Stock Exchange (BSE) quoted security company, has announced that the company’s results for the period ended 30th June 2014 will be significantly higher than those achieved in the same period the previous year. The security company said this is due to the success of the ongoing turnaround drive in achieving operational stability, improved revenue growth and significant cost efficiencies.
G4S further advised shareholders to exercise caution when dealing in the company’s securities until the interim results are announced on or about 22 August 2014.
In the corresponding period in the prior year, G4S, led by Managing Director Michael Kampani, saw its half year results increasing due to impairment of trade receivables in the period under review. There was a marginal revenue growth of two percent due to challenging market conditions.
At the time, Kampani highlighted that the growth was largely due to contribution from the Facilities Management division which was acquired in June 2012 while traditional products such as Manned Security and Systems faced some trading pressure. Also there was growth in systems which the company said was affected by a reduced run rate from the second half of 2012.
“Profit improvement measures are in place which includes a review of overheads and operating costs and enhanced focus on collection of trade receivables. In addition various initiatives are being undertaken to improve the service offering and drive revenue growth,” said Kampani at the time.
The G4S MD pointed out that another area of improvement is operations and service improvement, investment in operating equipment, customer service orientation as well as training. The company’s net earnings were 35 percent lower on the corresponding period in 2012 due to reduced systems run rates from the second half of 2012 and also an increase in impairment of trade receivables in the period under review.
“The financial information on which this statement is based has not been reviewed or reported on by G4S Botswana auditors,” the company said. In terms of the listing requirements of the BSE, a listed company is required to announce any circumstances or events that have, or are likely to have, a material effect on the financial results of the company for the period to be reported upon next.
In the same period the previous year, G4S profit before tax went down 37.4 percent to P6.0 million while profit after tax also went down 34.8 percent to P4.7 million. There was also a dividend of 3.53 thebe per share which translates to P2.824 million. In June 2012, the company concluded a P12 million acquisition of Facilities Management Group (FMG), which comprised PS Cleaning and a facilities management division. The listed security solutions outfit has confirmed that a total number of 33 employees were retrenched from the company in 2013 between November and December.