The only listed security company on the Botswana Stock Exchange, G4S Botswana Limited, posted surging profits as the deployment of technology based on the company’s security solutions nudged growth from top to bottom line.
G4S revenue climbed 2.2 percent to P218.5 million, with gross profit coming at P85.2 million, up by 16.3 percent. The company said revenue growth was bolstered by category mixed benefits, new business gained and positive contract adjustments.
“Our out-sourced cash services delivered a stellar 7% top line growth, owing to enhanced demand and customer retention underlining the value our Deposita technology brings to our retail and bank customers. Manned business services expanded by 2.4% supported by customer retention, new business gained as well as short term contracts,” the company revealed in the statement accompanying the results.
Profit after tax jumped 22.4 percent to P31.2 million for the year ended 31 December 2017, up from P25.5 million recorded in the previous year. This was achieved despite an 8.3 percent increase in expenses as well as a 27 percent decline in Facilities management, one of the company’s segments. The company’s Managing Director said they continue to undertake targeted project initiatives in improving productivity as well as other cost efficiency programs including business process re-engineering.
“Whilst our deployment is technology based in our security solutions offering, we started reaping the benefits in our electronic security offering around mid-year, which extended to improved process handling and thus well reflected in our customer retention achievements and leading to a revenue upside of 1 percent,” said Mokgethi Magapa, G4S Botswana Managing Director. “Net earnings expanded by 22.4 percent owing to improved customer retention gains as well as greater liberation of resources which was more pronounced in both our secure solutions and cash services which was partially offset by the impact of non-performing contract.”
Magapa said in spite of a weak trading environment, the company’s outlook is bullish as they have a deck of cards to play. “Our strong market positions, commercial discipline, growing technology-enabled revenues, positive cash generation and on-going productivity programmes provide substantial confidence that the Group is well positioned to deliver a strong performance over the next three years.”
The release of the results comes after the security company was cautioned by the BSE for failure to release the audited results within the stipulated time.