Tuesday, June 22, 2021

G4S recovers profitability after tough period

G4S (Botswana) Limited, the BSE listed securities solutions company, said 2014 was a good year as it managed to turn its fortunes around after a difficult period. The company said in its annual report for the year 2014 that for the first time since 2010, it experienced sizable growth, with a profit before tax of P35.9 million, the highest ever recorded by the company from trading operations.

Managing Director Michael KampaniÔÇöwho was roped in to steady the ship in 2013ÔÇösaid the primary goal was to stabilize the business and win back the confidence of customers, which he believes the company has accomplished satisfactorily.

“As such, I am pleased to say that by implementing the strategic plan to the letter during 2013-2014, the Company has achieved a dramatic turnaround. A 6.5% organic growth in revenue in the first year of the turnaround plan is a significant and welcome improvement over the modest 0.7% recorded in 2013,” said Kampani.

He said while G4S was unable to achieve its goal of 10percent organic growth, the figure of 6.5 percent was a positive step. He also expressed confidence that the company will improve on this growth in 2015.

G4S has consolidated and streamlined its organizational structures by placing the manned security and security systems, secure monitoring and response operations and responsibilities under one Director in 2013. This resulted in greater accountability to outcomes and results, improved efficiencies and enhanced synergies between these departments through 2014. However, the restructuring resulted in a number of retrenchments towards the end of 2013. While these had a positive cost impact, the company’s efforts to review its internal cost base so as to improve efficiencies, manage fleet costs and reduce waste, were more significant as they resulted in a 25 percent reduction in overhead costs in 2014.

“Wastage was also addressed at the direct cost level, with manpower and other direct costs being brought into line with the new strategic goals,” said G4S.

The company also conducted two comprehensive management reviews and held regular management team meetings throughout 2014, ensuring clear communication across all departments. Kampani said staffing levels have been rationalized and overlaps eliminated. In 2014, G4S said it made great strides towards containing bad debts.

“By discontinuing unprofitable accounts and attaining better margins, we have driven our overall profits upward,” it said.

G4S (Botswana) Limited has a shareholding partnership between the world’s leading security group (G4S Plc listed on the London Stock Exchange) and a wide band of Botswana citizen shareholders, including citizen pension funds. 70 percent of the issued shares are controlled by G4S International 105 (UK) Limited.

RELATED STORIES

Read this week's paper