Fuel increases dampen g4s profits

The Botswana Stock Exchange (BSE)-listed group watched operating profits drop 67 percent to P8.5 million in the full year ended December 31, 2012, as a string of fuel price increases eroded the gains made in revenues.

Fuel prices rose three times last year, each time by 50 thebe, wiping away an increase in G4S Botswana's revenues, which rose 14.2 percent to P187 million. According to its full year results, G4S Botswana's costs of sales rose 27 percent to P119.2 million while administrative expenses increased by 35 percent to P61.4 million. Costs of sales and administrative expenses are the two major components of operating costs.