G4S turnaround initiatives bear fruit
Isaac Pinielo | Friday March 13, 2015 16:27
The group’s audited financial results show that revenue grew to P200 million for the year ended December, 31 2014 from P188 million in 2013.
In the results commentary, G4S managing director, Michael Kampani stated that the growth in revenue is due to the success of the turnaround initiatives aimed at achieving operational stability, driving sales momentum, attracting new business and contract retention. “Good growth was achieved across all products on the back of significant growth in the cash business and a healthy growth in facilities management and systems businesses,” he said.
The group’s net earnings were 498.5 percent higher than for the year ended December, 31 2013.
Kampani explained that achievement of this level of growth in earnings was due to the success of the turnaround drive in achieving growth in revenue and significant cost efficiencies. Profit improvement measures, which included a review of overheads, operating costs and aggressive collection of trade receivables contributed to the significant improvement in profitability.
The directors expressed pleasure at the success of the turnaround drive in restoring the key fundamentals of the business. Kampani revealed that strategic focus will continue to build on the gains made in order to ensure continued revenue growth and improved profitability during the year 2015. He said new innovative products such as Deposita’s cash processing device launched during the year are making good penetration and will be supported by further integration of technology with the existing manned security and alarm monitoring products.
Deposita is a South African company focused on cash devices and related cash-in-transit, cash processing and insurance for the retail sector.
Kampani stated that various cost efficiency programmes are underway aimed at ensuring that costs are well contained to further improve operating margins.
He added that more efforts would also continue to be put towards a general improvement in service delivery and customer service.
The directors indicated that they are confident that the level of growth achieved will be sustained and the business will continue to show growth in the year 2015.