Restructuring turns around G4S fortunes

In his commentary on the published financial results, G4S managing director Michael Kampani said the good growth was achieved across all products on the backdrop of significant growth in the cash business and a healthy recovery of the facilities management business. The growth in earnings was driven by the success of turnaround drive in achieving improved revenue growth and significant cost efficiencies.

“Cost efficiencies resulting from a restructuring of the business in the last quarter of 2013 and various other cost containment initiatives including bad debts and recovery of facilities management business contributed to the significant growth in profitability,” he stated. The company’s profits declined in the past two years after the acquisition of Facilities Management Services in 2011. Last year it recorded a 37, 8 percent decline in profits to P4.82 million and a marginal revenue growth of 0.7 percent for the year ended 31 December 2013.