Tuesday, August 9, 2022

Write downs in system subscribers hits G4S earnings

G4S, the BSE-quoted company, has blamed write down in the number of systems for its subdued results for the period ended June 301, 2013.

The half year results for G4S Botswana Limited saw an increase in the impairment of trade receivables in the period under review.

The company’s Managing Director, Michael Kampani, said a marginal revenue growth of 2 percent was achieved during the period due to challenging market conditions.

Kampani added that the growth was largely due to the contribution from Facilities Management division which was acquired in June 2012 while traditional products such as Manned Security and Systems faced some trading pressure.

“Growth in Systems was affected by a reduced run rate from the second half of 2012 which resulted from a write down in the number of systems subscribers for credit reasons,” said Kampani.

The company’s net earnings were 35 percent lower on the corresponding period in 2012 due to the reduced systems run rate from the second half of 2012 and also an increase in the impairment of trade receivables in the period under review.

“The interim results compare favourably to the full year results for the period ended 31 December 2012 and that at the current trading run rate, growth in full year earnings is expected for the year ending 31 December 2013,” said Kampani.

He added that profit improvement measures are in place which includes a review of overheads and operating costs and enhanced focus on collection of trade receivables. He stated that in addition various initiatives are being undertaken to improve the service offering and drive revenue growth.

“Ten new vehicles will be added to the fleet by the end of August and further additions are planned towards the end of the year as part of the planned investments that will benefit our customers,” he said.

Profit before tax went down 37.4 percent to P6.0 million while profit after tax also went down 34.8 percent to P4.7 million and also there was dividend of 3.53 thebe per share which translates to P2.824 million.

Pre tax and Post tax profits are at 59 percent and 55percent respectively of financial year 2012.
“We have a healthy cash flow, complete and competent management team in place and looking forward for stable and improving cash flow,” said Kampani.

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