G4S Botswana, the listed security solutions group has recorded revenue growth of 2.8 percent for the year at P213.9 million from P207.9 million in 2015. The growth has been underpinned by significant new contracts acquired in Facilities Management and Cash Solutions.
G4S Group Botswana Chief Executive Officer (CEO) Mokgethi Magapa said the company also saw a strong uptake on Deposita Machine, notwithstanding unforgiving economic fundamentals. He said their strategic priority to drive a balanced top line growth by enhancing their service offering through innovative mediums was yielding results.
“We continued to drive strong growth in Manned Security and Cash Solutions owing to major contract renewals registering 6.4 percent and 3.5 percent respectively. Our successful Deposita product has seen pleasing growth from 7 devices in 2015 to over 60 in 2016,” said Magapa.
On the company Cleaning Services achieved a growth of 19.8 percent to P19.7 million from P16.4 in prior year. However, the group’s electronic security declined by 5.4 percent to P61.2 million in 2016 from P64.8 million in 2015, owing to relatively reduced number of large electronic systems projects than the previous year.
The company’s Net earnings were 14.8 percent lower than for the corresponding year mainly due to the lower electronic security growth. This reduced scope for some contracts as well as one off restructuring costs which the company said will reap full cost efficiencies in 2017.
“A number of business closures or business being placed under liquidation also adversely impacted trading in general and recovery of accounts receivables and impairment,” he said.
Mogapa said their priority is customer relationship management, customer loyalty and retention. He added that the company is considering business process of re-engineering for growth through innovation.
“We want repositioning systems business, and also focus on cash solutions which are core competencies as well as repositioning Cleaning and FMS business lines,” said Magapa.
He spoke of the company’s bad debts of P1.8 million by BCL, KFC, Tati, URB, adding that the company’s restructuring costs were at P881 000.
Quizzed on the recent delayed publishing of the company financials as Botswana Stock Exchange (BSE) listed company, G4S Finance Director Peter Kgomotso stated that the delay was as a result of the company not having a substantive FD at the time which then at the time led to the delay as required by BSE.