G4S records modest growth
Isaac Pinielo | Tuesday April 19, 2016 18:00
In the group’s reviewed annual financial results for the period, managing director Michael Kampani said the revenue growth was achieved despite a tough economic environment.
He said while there was strong growth in cash solutions, manned security and facilities management, there was a decline in electronic systems revenue.
“This was due to deliberate initiatives to right size the alarm monitoring subscriber base for credit reasons,” Kampani said.
The group’s earnings before taxation were 8.8 percent higher while net earnings were 2.4 percent higher than for the corresponding year.
He attributed the growth mainly to new and retained business as a result of sustained operational stability, success of cost efficiency programmes, and investment income out of a healthy cash flow.
He pointed out that having attained the key objective of consolidating and sustaining the gains made in the turnaround achieved in the previous year, focus will be on the implementation of productivity and other cost efficiency programmes in order to sustain and grow profitability.
“Though the market remains challenging, there are good growth prospects across all products,” he stressed. Kampani also said service improvement and the strengthening of customer relations would also remain top of the group’s strategic priorities.
He spoke of strides to roll out innovative product offerings in integrated security, cash solutions and risk management among others. According to Kampani, the directors were pleased with the current performance and prospects that lie ahead, adding that they are confident that the business will weather the current economic environment and deliver further growth in earnings as well as deliver more value to the customers.
The directors have recommended a final dividend of 10.88 thebe per share gross of tax, which is payable on or about May 13, 2016 to shareholders registered as at April 29, 2016.