Today, security company G4S Botswana published its FY 2024 and H1 2025 results on the same day, an unusual occurrence on the Botswana Stock Exchange.
This is because the company's FY 2024 results, which were supposed to be published by 31 March 2025, had to be delayed due to internal control deficiencies that have shaken shareholder confidence.
Management expressed regret for the recurrence of this issue, which has led to reduced shareholder confidence and corporate fines.
The internal challenges include a staff restructuring exercise, coupled with key staff turnover, which negatively impacted the processing and collation of information. In February 2025, Managing Director Mothusi Molokomme tendered his resignation, before rescinding it three months later to continue with the company.
The persistence of inadequate internal financial controls affected several critical areas, including expected credit losses, revenue recognition for the Electronic Security Systems (ESS) line, and VAT payable.
Lastly, an over-reliance on predominantly manual internal processes was also cited as a contributing factor. The Board has conceded that the control environment requires improvement and has committed to making this a focal point in 2025.
In terms of financial performance for FY 2024, G4S recorded an increase in revenue to P231.1 million, a rise of 7.6% from the prior year. This growth was primarily driven by the Manned Guarding segment and its subsidiaries. However, the gross profit increase was limited to 3.8% due to a one-off increase in salary-related provisions following a minimum wage increase.
Overall, the Group ended the year with an operating loss of (P16.6 million) and a loss before taxation of (P16.0 million), which is a larger loss than the prior year's loss of (P12.3 million). The net impairment loss on trade accounts receivable also significantly increased to P6.2 million from P3.6 million in 2023, largely driven by the Electronic Security Systems business.
H1 2025 Performance
For H1 2025, G4S Botswana has posted a P3.2 million pre-tax profit for the half-year ended 30 June 2025, a turnaround from a P8.2 million loss in the same period last year. But despite the improved numbers, the security company continues to grapple with operational challenges, mounting customer losses, and a declining share price.
Revenue inched up 1.6% to P117.6 million, buoyed by a 7.2% increase in manned security services, which rose to P58.7 million. However, the Electronic Security Solutions (ESS) unit fell 5.9%, dragged down by terminated residential accounts due to non-payment in a struggling economy. The cash services segment remained flat at P32 million.
Although gross profit jumped 40% thanks to margin improvements and cost savings, warning signs remain. The company acknowledged that ESS underperformance, lingering bad debts, and customer attrition remain key risks. Net impairments on financial assets stood at P3.5 million, down from P6.7 million last year, following the write-off of old alarm debt.
Administrative expenses fell 3.7%, aided by last year’s restructuring exercise. Still, the company flagged rising IT and property costs as unavoidable pressures.
Adding to the woes, G4S revealed that its share price dropped to P0.91 on 18 September 2025, pushing its market capitalisation down to P72.8 million, about 13.5% below its book value. Directors warned that if the decline persists, it could trigger an asset impairment at year-end.