G4S profits fall

G4S Botswana Managing Director, Mokgethi Magapa remains optimistic despite his company recording a 14.8 percent decline in profit to P25.5 million in its financial year ended December 2016.

Commenting on the published results Magapa said the group’s net earnings were lower due to the lower electronic security growth, reduced scope for some contracts as well as restructuring costs. “A number of business closures adversely impacted trading in general and recovery of accounts receivables and impairment,” commented Magapa.

He said they have a strong business with exceptional long-term prospects with the outlook for the year in both revenue and profit looking promising despite the subdued trading environment.The group recorded 2.8 percent growth in revenue to P213.8 million underpinned by new contracts in Facilities Management and Cash Solutions. Cleaning services recorded 19.8 percent growth, Manned Security grew by 6.4 percent while electronic Security declined by 5.4 percent due to reduced number of large electronic systems projects than in the previous year.

Magapa also stated that a firm plan is in place to drive recovery of electronic security and growth across all segments in addition to continued drive towards implementation of productivity and other cost efficiency programmes.

“The company will maintain its focus on integrating technology in its offering of higher end quality products. The directors are confident that the business will overcome the current economic environment and deliver growth in earnings as well as deliver more value to our customers,” he said.