G4S Botswana narrows losses
Lewanika Timothy | Tuesday July 7, 2026 11:29
Financial statements released on the bourse last week show the company posted a net loss of P4.9 million for the year ended December 31, 2025, a marked improvement from the P14.3 million loss recorded in the previous year. Loss before tax narrowed by nearly 74% to P4.2 million, underscoring the impact of a restructuring exercise undertaken during 2024.
The improved performance comes after several years of financial underperformance and amid heightened scrutiny over the company's repeated delays in publishing audited financial results.
Despite revenue growth remaining subdued, G4S succeeded in extracting significantly more profit from its operations. Turnover rose marginally by 0.8 percent to P233 million, but gross profit increased by 22.1% to P47.8 million, with gross margins expanding to 20.5% from 16.9% a year earlier.
Management attributed the turnaround primarily to tighter cost controls and a corporate restructuring programme that permanently reduced core labour costs by 28%.
Administrative expenses declined by 10.8% during the year, reflecting what the company described as the benefits of establishing a leaner operating structure.
However, the recovery in operating performance was partially offset by increased impairment charges.
G4S recognised expected credit losses of P7.9 million on trade receivables, up from P6.2 million in 2024, with much of the exposure arising within its Electronic Security Services division, which serves predominantly retail customers. The company also booked a P4.5 million goodwill impairment after its market capitalisation fell below its net asset value, triggering an impairment assessment under international accounting standards.
Among the group's operating divisions, Manned Guarding Services emerged as the strongest performer, with revenue increasing by 8.2% to P121.2 million, following new contract wins in the financial services sector.
The division also improved labour productivity through workforce optimisation initiatives, helping expand margins despite operating in what management described as a highly competitive market.
Cash Solutions, meanwhile, recorded revenue of P62.1 million, down 2.1 percent after the company exited lower-margin contracts. Nevertheless, gross margins improved significantly to 34.8%, reflecting stronger pricing discipline and tighter cost management.
The Electronic Security Services business experienced declining revenue during the year but delivered improved profitability following a restructuring of its alarm response fleet and broader reductions in operating costs.
The results were accompanied by another delay in the publication of audited financial statements, which were released in early July, more than three months after the Botswana Stock Exchange's March 31 reporting deadline.
Management attributed the delay to staff turnover and an overreliance on manual financial reporting processes, which exposed deficiencies in internal controls relating to revenue recognition, receivables management, impairment testing, and lease accounting.
The company acknowledged that the delay resulted in regulatory penalties and negatively affected investor confidence.
In response, G4S said it is implementing automated reporting systems, strengthening internal controls and improving talent retention within its finance function to prevent future reporting delays.
Despite four consecutive years of losses, management said the group continues to maintain a strong balance sheet and healthy cash generation, providing sufficient capacity to fund operations and support future growth initiatives.