Restructuring turns around G4S fortunes :: Mmegi Online

After restructuring its business operations last year, G4S (Botswana) has recorded a 129 percent increase in profits before tax to P13.7 million for the half-year ended June 30, 2014. Revenue also increased by seven percent to P98.4 million during the period due to the success of the turnaround initiatives, which were aimed at achieving operational stability, driving sales momentum and attracting new business.

In his commentary on the published financial results, G4S managing director Michael Kampani said the good growth was achieved across all products on the backdrop of significant growth in the cash business and a healthy recovery of the facilities management business. The growth in earnings was driven by the success of turnaround drive in achieving improved revenue growth and significant cost efficiencies.

“Cost efficiencies resulting from a restructuring of the business in the last quarter of 2013 and various other cost containment initiatives including bad debts and recovery of facilities management business contributed to the significant growth in profitability,” he stated. The company’s profits declined in the past two years after the acquisition of Facilities Management Services in 2011. Last year it recorded a 37, 8 percent decline in profits to P4.82 million and a marginal revenue growth of 0.7 percent for the year ended 31 December 2013.

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