G4S Botswana, the country’s biggest security services company said it will continue to implement operational and service improvements, with increased capacity to provide better customer satisfaction and enhanced security solutions.
Writing in the company latest annual report, Managing Director, Mokgethi Magapa noted that, ‘the leveraging of our technological capability regionally and globally would give us a competitive edge in a market that is still driven by traditional manned guarding solutions for customers’. The company competes head to head with big players such as Security Systems and Security Services in the manned security.
Meanwhile, the group which also has a property management division stated that its cash processing and management
space, including Automated Teller Machines(ATM) management, continues to offer great opportunity, despite fighting with other players such as the above mentioned for the same tenders especially in the financial services sectors. “As the first mover and with greater capability, we see cash as a great flagship business given the products and services that we are able to introduce to the local market,” said a confident Magapa who is writing his first annual report as the CEO of the company.
Meanwhile, G4S Botswana which saw its profitability in the past few years declining has now stabilised, as seen on its profit for full year to December 2017. “G4S is now more stable and on more sound financial footing, realising a Profit Before Tax of P40.22 million, which represents an improvement of 25.6 percent over 2016. Revenue grew at 2.2 percent in a subdued economy which struggled to break the 4 percent growth mark amid a record number of closures in the mining sector,” noted Chairman Dr. Masego Mpotokwane. Mpotokwane is also a shareholder in the company
Going forward, the company which is owned in majority by G4S plc, the London-listed company said that it will continue to acquire customers with great emphasis placed on reviewing our client portfolio and service mix to achieve sustainable revenue growth. “New areas (geographic) of business operation, new products/services as well as partnerships are set to provide us with the quantum leap that is required for revenue growth. This will create sustainability in our business and allow us therefore the ability to fully invest in our operation,” said Magapa who is among the youngest crop of CEO is the publicly listed companies.
‘As we strive to enhance our operational capability, automation and outsourcing of non-core activities will be top of the agenda. We believe this would give us the agility to improve our mainstream business. The Facilities Management business presents unparalleled opportunity given that we are the only security and risk management company that offers that particular service’
G4S Botswana, an integrated security company remains optimistic to deliver strong performance in the next three years as they continue to focus on growing technology enabled revenues, strong market positions and commercial discipline.
The group recorded 16 percent in profits to P31.2 million in its year ended December 2017, revenue increased by 2.2 percent to P218.5 billion bolstered by category mixed benefits while new business gained positive contract adjustments. Cash outsourced services increased by seven percent due to enhanced demand and customer retention.
Commenting on the published results, G4S group Chairman Lebang Mpotokwanne said they remain steadfast in their strategy to push ahead with deployment of integrated security solutions which aims to combine both technology and manned security as they seek to retain and expand the existing contracts.
“Notwithstanding a weak trading environment, we continue to liberate resources and we will continue to bolster our key relationships and invest in our customers through bundled technology offerings and re-aligning our mandatory risk assessments,” said Mpotokwane.
The cleaning, security systems registered growth of over three percent and one percent respectively while facilities management segment declined by 27 percent. Mpotokwane said their strategic priority to drive a balanced top line growth by enhancing service offering through innovative mediums is yielding results as they continue to broaden and deepen the customer base.
He said their strategic plan continues to bear fruit and is currently driving recovery of Electronic Security and growth across all segments, particularly in the security solutions. G4S Botswana is a unit of London Stock Exchange listed group, G4S plc.
G4S Botswana, the country’s biggest security services company has posted improved profit for the past year despite challenging trading space. At the end of December 2015, Profit After Tax (PAT) of the sole listed security sat at P29, 5 million, up marginally when compared to P28, 8 million recorded the year before.
Like most security companies in the mining-rich economy, the BSE-quoted company faces stiff competition from mushrooming players especially in the manned security space, default or late payments by some clients and reduction in business due to muted economic growth. Led by Michael Kampani, the company has been involved in a turnaround strategy that is now bearing fruits, if the balance sheet is a measure to go with. “Revenue growth of 3,8 percent was achieved despite a challenging economic environment,” said a joint statement by long time Chairman, Lebang Mpotokwane and Kampani.
During the period under review, the Gaborone-based company reported that there was notable growth cash solutions, manned security and facilities management. The G4S Facilities Management is a unit, which was bought from Shield Security some few years ago. The directors of the security company said that there was decline in business within the electronic system unit. G4S, which listed in the domestic bourse in 1991,was forced to ‘right size’ the number of alarm monitoring subscriber base for credit reasons.
Earnings Before Taxation (EBT) expanded by 8,8 percent year on year as a result of new business and existing clients. The directors are content that their turnaround strategy is working and they are expecting better profits in future. “Having attained the key objective of consolidating and sustaining the gains made in the turnaround in the previous year, focus will continue towards implementation of productivity and other cost efficiency programs,” said Mpotokwane and Kampani. “Though the market remains challenging, there are good prospects across all products”
On top of the agenda will include improved customers service and a roll out of new products. When Kampani appear before the media this morning (Friday), it will be interesting to know how G4S’s Deposit machine has performed in the period under review. At the stock market, punters did not immediately react to the company’s modest results, as its share price closed the day flat at 363 thebe. Shareholders are smiling that a final dividend of 10,88 thebe has been declared.