G4S enters third year of losses despite revenue growth
Lewanika Timothy | Tuesday October 28, 2025 10:09
The multinational security group reported a loss of P14.3 million for the year ended December 2024, widening from P11.1 million in 2023. On the other hand, operating losses stood at P16.5 million, even as total revenue rose to P231.2 million, reflecting the company’s resilience in maintaining topline growth amid a difficult trading environment. Management attributed the continued losses to the combined effects of inflation-driven cost pressures and a market landscape increasingly dominated by citizen-owned security firms benefiting from preferential public procurement thresholds. “There has been a general inflation increase leading to higher costs of operation. A cost reduction strategy has been effected and management is closely monitoring this,” the company stated in its latest annual report.
Despite the strain on profits, G4S said its subsidiaries performed positively, contributing to overall revenue and signalling new opportunities for expansion. The company also ventured into the retail segment ,traditionally lower-margin than corporate contracts , as part of a broader product and market diversification strategy aimed at cushioning against concentrated exposure. However, the firm’s alarm systems business has been hit by aggressive pricing from new citizen entrants who are undercutting established players to win market share. With losses mounting, G4S’ board announced that no dividend will be paid for the third consecutive year, citing the need to preserve cash and strengthen the company’s balance sheet.
Despite the setbacks, management maintained that the group remains focused on improving its internal controls, retaining customers, and pursuing profitable contracts. “The group continues to focus on improving the internal controls environment, growing sales and reducing costs of sales and operational expenses in line with the devised cost reduction strategy,” the report noted, adding that G4S remains committed to maintaining its position as a leading security services provider. While revenue growth offers a glimmer of optimism, analysts say the third year of red ink highlights the structural pressures facing Botswana’s security industry particularly for foreign-owned operators navigating citizen economic empowerment policies and rising costs.