Listed security outfit, G4S Security Services, this week published improved results over last year with good performances from secure monitoring and response, also turning around the weaker guarding operations.
The company, though, though experienced a marginal squeeze in the competitive cash solution business.
The company’s results for the six months ended June 2009 showed a healthy growth in business with a turnover growth of 35 percent up to P66 million.
This is an improvement of 34.9 percent from the P48 million recorded in the same period last year.
Gains after tax doubled to P10 million while cash reserves stand at P24 million compared to P11 million in the same period in 2008.
G4S managing director, Percy Raditladi, told Sunday Standard that he is not surprised at the results because when he came to the company ‘it was a sleeping giant’.
“This improvement can happen to any other company. It is a good company. People had skills and mindset challenges,” Raditladi said.
“When I came here, the results were shocking and the company was going down. That was when I took drastic decisions,” he added.
Raditladi attributes the profitable performance of the security company to the good management team of young people and its refurbishment programme.
Although, other divisions like guarding and systems have contributed significantly to the overall turnover, G4S still identifies cash management service as a challenge.
Cash services contributed 25 percent to turnover while guarding added 36 percent while monitoring and installation made a combined 39 percent.
“The results show that the business is robust and resilient to the downturn. We can respond rapidly. We did not have a proper IT department, but now have a full IT manager and we invested in a wide area network and have a new server,” he revealed.
He stated that main guarding division was a tough business. Last year there was a strike with 400 guards involved and an ATM in Letlhakane was bombed because the guard was not there.
The company decided to get tough. That led to over P1 million in losses of contracts. But the company managed to compensate with new contracts like the one from EU and others they won this year including Debswana and Cresta.
The new quality contracts contribute in excess of P800,000 a month.
The MD also complained that the cash service business is not improving.
G4S transports cash for retailers and banks also doing ATM replenishment. The company has since grown the banks from one to two now and it is currently looking after 15 ATMs while also running a cash centre for the banks.
“The money is our responsibility. This is a rough and tough business. Chances are that you will have a loss and the insurance premiums are high. We have competitors using standard vehicles at a risk,” he pointed out.
The interim dividend declared stands at 58.86 thebe, an improvement of 38.25 thebe in the same period in 2008.