Security services firm G4S (Botswana) Limited has reported another year of losses for the 2024 financial period despite a 7.6% growth in group revenue, driven largely by its manned guarding business.
The company, however, remains confident of a turnaround as management implements a restructuring plan and cost-control measures.
According to the company’s newly released 2024 annual report, revenue rose to P231.3 million, up from P215 million the previous year, bolstered by an 18% increase in the manned guarding segment following government-mandated wage adjustments and new contract wins, particularly in the mining sector.
However, G4S recorded an operating loss before tax that widened by 30.5% to P15.8 million, reflecting higher administrative expenses, rising labour costs, and increased impairment losses. Net impairment losses on financial assets surged by 73.7%, mainly due to old, irrecoverable debt from its alarm services division.
Board Chairperson Boitumelo Mbaakanyi described 2024 as a “challenging year” marked by operational setbacks and delays in financial reporting. “It is with regret that we announce the non-payment of a dividend for the third consecutive year due to the operating loss,” she said. Mbaakanyi, who is retiring after nearly a decade on the board, will be succeeded by Wincey Ramaphoi as chairperson following the upcoming AGM.
The company cited high insurance and security costs in its cash-in-transit (CIT) business, coupled with increased audit and compliance expenses, as major cost pressures. A restructuring exercise implemented in December 2024 is expected to cut the wage bill by 25% and help restore profitability.
G4S Managing Director Mothusi Molokomme said the company’s turnaround strategy is anchored on four key pillars—commercial excellence, innovation and technology, risk consulting, and operational efficiency. He added that early signs of recovery are emerging, with gross margins improving by 4% and subsidiary FMB posting a 20% increase in profit before tax.
The group’s other subsidiary, Access and Beyond Botswana, remained in the red, with management citing slow market penetration.
Despite its financial headwinds, G4S Botswana maintains a strong balance sheet with no external debt, and continues to employ nearly 3,000 Batswana. The company has also increased its local procurement spend to 75% as part of its citizen empowerment drive.
The firm’s share price fell sharply from P2.45 to P1.00 in early 2025, bringing its market capitalization close to its net asset value of P81 million, a development the Audit and Risk Committee said could trigger a potential impairment review in mid-2025.
Looking ahead, G4S said it will focus on digital transformation, enhanced debt management, and expanding its technology-based security offerings to remain competitive amid growing citizen-owned entrants in the sector.