G4S, the listed security solutions group has posted marginal improvements in its half year results, bringing hope that its turnaround strategy is starting to bear fruit. The company was forced to implement new measures to address declining fortunes that came with the appointment of a new non local Managing Director. Net earnings were 129 percent higher than for the corresponding period in 2013 that were praised on the new drive in achieving improved revenue growth and significant cost efficiencies.
In its interim results for the period ended 30 June 2014, the company saw its revenues go up 6.6 percent from P92.4 million, on the prior year to P98.4 million. Profit before tax stood at P13. 7 million from P6 million, and taxation of P3 million meant total comprehensive income stands at P10.7 million.
The company, headed by Michael Kampani said the top-line growth was achieved during the period due to the success of the turnaround initiatives aimed at achieving operational stability, driving sales momentum, attracting new business, and contract retention.
“Good growth was achieved across all products on the back of significant growth in the cash business and a healthy recovery of the facilities management business,” it said in statement accompanying the
Cost efficiencies resulting from a restructuring of the business in the last quarter of 2013 and various other cost containment initiatives including bad debts and recovery of the facilities management business contributed to the significant growth in profitability.
“As the turnaround drive continues revenue growth and profit improvement measures will continue in the second half of the year. Good cash management prospects including the rollout of innovative
cash management products and continued investment in fleet and other operating infrastructure and equipment are expected to entrench operational stability, strengthen operational capabilities, enhance contract retention and stimulate revenue growth,” G4S said.
“Efforts also will continue towards a general improvement in service delivery and customer service as positive benefits continue to emerge from the recent investments in alarm monitoring software upgrade, implementation of an incident management system, among many other initiatives.”
G4S cut 33 jobs last year as it looked to scale down on duplicate jobs as the previous structure had many positions in terms of hierarchy with many supervisors or many layers. The Directors have recommended an interim dividend of 7.80 thebe per share gross of tax. The interim dividend is payable on or about 12th September 2014 to shareholders registered as at 5th September 2014.