G4S post below-forecast revenues
Isaac Pinielo | Tuesday August 25, 2015 14:42
The company registered P103 million in revenue during the half-year period as compared to P98 million achieved in the same period the previous year.
Managing director, Michael Kampani told the media during the presentation of the interim financial results for the period ended June 30, 2015 that they had expected the revenue growth to be around eight percent.
“We however console ourselves with the fact that this growth of 4.6 percent was achieved despite a challenging market environment,” he said.
He added that the growth has been achieved through sustained operational stability and customer retention while continuing with the right sizing of the systems business by way of subscriber write downs for credit reasons.
Kampani also noted that there was strong growth in cash solutions while manned security and facilities management also registered decent growth.
Delivering the company’s financials, G4S finance director Motshidisi Mvami revealed that earnings were higher than for the corresponding period in 2014.
Net earnings were up 36 percent from P10.7 million in 2014 to P14.6 million this year.
He said this was due to the sustained operational stability and customer retention and continued success with cost efficiency programmes.
“As a result of a healthy cash flow, growth in investment income also contributed to the growth in earnings,” said Mvami.
According to Kampani, implementation of productivity and other cost efficiency programs are on-going and expected to yield further benefits towards sustaining profitability in the second half of the year.
“Though the market remains challenging, there are good growth prospects in cash solutions and other products.
“Investments in fleet upgrade were made in the first half and are on-going, which will see further improvements in service levels in Cash-in-Transit and Alarm Monitoring and Response,” he said.
Kampani also revealed that with the business stability sustained, significant focus is being placed on driving service improvements and the strengthening of customer relations.
He noted that the directors are confident that the second half of the year will deliver more value to their customers as well as deliver improved results.