Moraki Mokgosana, the Chief Executive of Botswana’s leading Security Company, G4S Botswana Limited, says his company’s preliminary audited results show improved revenue performance against the backdrop of fears of a double dip recession. He says cash flow improved due to receipt of proceeds from sale of property.
Mokgosana said the company’s prospects and key focus areas include development of sales and customer service capability as well as investment in human capital. He stated that automation and systems integration to improve process and enhance competitive advantage is also another key area.
“Diversified revenue streams in line with global strategy of being an outsourced service provider as well as customer supremacy are important,” he said.
The financial results highlights indicate organic growth of 10.6 percent, with the gross margin up 9.7 percent. Year 2010 included P15.9 million profit on sale of property. The total dividend went up to P26.7 million while in 2010 it was P36.7 million. G4s ended the year with strong cash reserves of P30.8 million. The income statement for the ended December 31 2011 indicate that the revenue in 2010 was 147 990 while in 2011 it was 163 702 with a change of 10.6 percent. The gross profit for 2011 was 69 783 with a 9.7 percent change. The cost of sales in 2010 went up to 11.3 percent from 84 354 to 93 919.
Mokgosana stated that revenue contribution by product for the year December 2011 was led by security systems by 38 percent, followed by cash solutions by 27 percent and then lastly manned security by 35 percent. He further said in terms of the operating profit contribution by product, cash solutions got 53 percent, security systems 37 percent and manned 10 percent. He said that the dividend interim normal dividend is 73.70 thebe and the final normal dividend is 17.5 thebe, which is now P14 million of which in 2010 was 235.10 thebe and now is P18. 808 million.
“The manned security division experienced organic growth of 5 percent versus 12.5 percent in 2010. Major contract losses during the year include 2 government contracts and one parastatal; there was healthy pipeline developed during the year with contract awards in late 2011,” he explained.
Futhermore, Mokgosana said the company will focus on the adoption of group operational standards, a key priority in 2012 to improve consistency in service delivery. He stated that in the security system, they have bounced back from negative growth of headline earnings of -1.6 percent and added that the introduction of new revenue stream in fleet management and asset tracking was a major development as well as increasing popularity of the “Secupak” product.
G4S Finance director, Obonetse Mothelesi, said cash solutions experienced organic growth of 6 percent against 17.2 percent in 2010 and he added that financial institutions are continuing caution due to volatile global market conditions. He further said there is continued internal review of processes and control as well as implementation of the UK Bribery Act 2010 that has commenced.
“The business has continued to perform reasonably well, achieving organic growth of 10 percent despite facing challenging market conditions,” said Mothelesi.