Group 4 Security (G4S Botswana) plans on investing in infrastructure to curb armed and aggravated crimes. The Cash In Transit heists has been on the rise recently with G4S being the mostly affected security company.
The company said on its half year financial report, “The Board and Management remains bullish across all service lines for the short and medium term. We have recently seen a significant change in the security environment in Botswana, with a sharp increase in armed and aggravated crimes. In response to the changing environment, we remain agile and are investing in our infrastructure, solutions and people to ensure that we are appropriately equipped to safeguard our customers and communities.”
In the same financial report, the company reported a reduction in revenue and profit for the half year ended 30 June 2021. In comparison with the same period last year, G4S Botswana made Ninety-five Million, Two hundred and Thirty-seven thousand Pula (P95 237 000) against the preceding year’s Ninety-nine Million, Eight hundred and Sixty (P99 860 000) in revenue.
Profit for the period stood at Nine Million, Six hundred and Fifty-eight thousand Pula (P9 658 000). In the same period last year, the company recorded Eighteen Million, Eight hundred and Seventy-three thousand Pula (P18 873 000).
However, the company recorded eight percent (8%) growth in cash revenue (from Twenty-eight point four Million Pula (P28.4m) in 2020 half year, to Thirty point Six Million Pula (P30.6m) in the current half year), and reduction in administrative expenses (from Seventeen point Seven Million Pula (P17.7m) in 2020 half year, to Thirteen point Eight Million Pula (P13.8m) in 2021 half year). The company also resolved to declare a dividend of Nineteen point Sixty-three (19.63) thebe gross of tax in recognition of profits earned over the past 18 months. This reflects One hundred and Fifty-one point seven percent (151.7%) in comparison to the preceding year’s Seven point eight (7.8) thebe per share.
Explaining the decline in revenue and profit, the financial report outlined, “Group revenue declined by 4.9% year on year, attributable mainly to revenue losses in our alarms business as well as a sustained drought of large non-portfolio pure technology sales. Revenue from discontinued operations declined by 18.5%, continuing the unwinding of the business following the implementation of the Trade Act in June 2020. While we have seen positive growth in our MSS and Cash service lines in 2021, growth in our ESS service line has remained subdued. Gross profit reduced by 20.2% YoY due to increased cost of operations, specifically in respect of fuel and fleet maintenance costs”