G4S revenue jumps on new contracts
Isaac Pinielo | Thursday May 4, 2017 15:41
G4S runs a wide array of services ranging from manned security, cash solutions, security systems, cleaning services, facilities management and fleet management.
The group’s revenue for the year rose 2.8% to P213.9 million from P207.9 million in 2015.
According to G4S managing director, Mokgethi Magapa the group continued to drive strong growth in manned security and cash solutions owing to major contract renewals, registering 6.4% to P66.8 million in 2016 from P62.7 million in 2015 and 3.5% to P63.2 million in 2016 from P60.9 million in 2015 respectively.
Cleaning services achieved a growth of 19.8% to P19.7 million from P16.4 in prior year. “Our successful Deposita product has seen pleasing growing from seven devices in 2015 to over 60 in 2016,” Magapa said.
However, the group’s electronic security declined by 5.4% 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. Magapa also said net earnings were 14.8% lower than for the corresponding year mainly due to the lower electronic security growth, reduced scope for some contracts as well as one-off restructuring costs, which 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.
He further noted that while the trading environment remains subdued, the outlook for year-on-year growth in both revenue and profit is looking positive and promising. He expressed optimism stating that the group has a strong business with exceptional long-term prospects.
“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 including financial benefits from a restructuring exercise undertaken towards the end of the year under review,” Magapa said.
He said the company will maintain its focus on integrating technology in its offering of higher end quality products, adding that 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 its customers.
The group has declared gross final dividend of 9.84 thebe per share on April 27, 2017 for the year ended December 31, 2016 for payment to those ordinary shareholders in the books of the company at the close of business on May 19, 2017. Net dividend will be paid on or around June 14, 2017.