G4S revenue grows on new business gained
Isaac Pinielo | Wednesday October 4, 2017 17:09
For the half-year period ended June 30, 2017, the group’s revenue grew by 2.4% to P110.7 million from P108.1 million the same period last year.
During the same period, gross profit was P43.3 million, a 7.4% increase from P40.3 million in the prior period.
Commenting on the results, G4S managing director, Mokgethi Magapa attributed this to new business across the portfolio such as cash, manned and facilities management.
He also mentioned other contributing factors such as price increase benefits and product mix benefits leaning towards cash management as well as a watered-down economic environment.
In addition, cash reserves expanded by 192% owing to sustained top line growth assisted by timing related investment decisions on capital expenditure projects.
He said profit before interest, tax and amortisation (PBITA) increased by 5.1% predominantly driven by new business-led top line growth.
“We remain focused on our ‘5 to Drive’ strategic priorities to deliver profitable revenue growth and liberate resources to be able to provide value added services and pass the benefit to our customers,” he said.
He said the group’s strategic priorities remain embedded in its operations across the business lines to adequately enable support to its order to cash process.
“These are revenue growth, cost containment, customer-centricity, operational excellence and engaged people,” Magapa said.
Together with centralised contract management, he said reduced time from event to billing and strengthened collections performance, they have seen significant improvements in their cash conversion efficiencies, which remained at 167.5%.
He said 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 current economic environment and deliver growth in earnings as well as deliver more value to our customers,” he said.