G4S Botswana Limited, the listed security solutions outfit, has confirmed a total number of 33 employees have been retrenched from the company last year between November and December.
On Friday, the company’s Managing Director, Michael Kampani, revealed that about 25 of the affected employees were on the overheads structure side and the other eight were on the direct cost side, adding that the emphasis is on the overheads.
“The exercise was done on finance department, human resources, and support functions services and the operating structure was redone as it earlier had so many positions,” he said.
The company looked at which roles are similar and what the extent in terms of concentration of the job in each division and the similar jobs were combined. Kampani added that the previous structure had many positions in terms of hierarchy with many supervisors or many layers.
He also said that the company realised that the structure itself was not good in terms of efficiency and added that they did not look at the individuals.
“We have other branches such as in Francistown and we said that do we really a particular function at the branch level and whether it adds any value and also resources used at the branches,” he said.
He spoke about G4S 2014 strategy highlighting organic growth of +10 percent as well as gaining sales momentum.
He is also optimistic about the new products and product innovation to be introduced and added that other focus areas are account management and customer retention.
“We are aiming for profit growth of +100 percent, overheads reductions, cost efficiencies, contract profitability and containment of bad debts,” said Kampani.
The G4S MD pointed out that another area of improvement is the operational and service improvement, investment in operating equipment, Customer service orientation as well as training.
A close look at the security solutions group’s annual reports listed in the Botswana Stock Exchange (BSE) from year 2012, 2011 and 2010 annual reports indicate that the G4S share price dropped from P5.80 per share as at end of 2012 to a low of P3.30 per share as at November 4th, 2013 and it is signals that the market is not happy about the company’s performance.
Over and above that, the company’s total liabilities increased to about P36.4 million from P27.9 million in 2011 and 2012 while Gross Profit declined from an increase of 74 percent in 2010 to a negative 65 percent in 2012, a two year period.