G4S Botswana significantly reduced its annual losses in 2025 as cost-cutting measures and stronger margins across its core businesses offset rising impairment charges and a difficult operating environment.
The security services provider reported a net loss of P4.9 million for the year ended December 31, 2025, an improvement from the P14.3 million loss recorded a year earlier. Loss before tax narrowed by nearly 74% to P4.2 million, reflecting what management described as the benefits of restructuring undertaken during 2024.
Revenue edged up just 0.8% to P233 million, but improved profitability at the operational level lifted gross profit by 22.1% to P47.8 million, while gross margin expanded to 20.5% from 16.9% in the previous year.
The turnaround was driven largely by tighter cost control. Administrative expenses fell by 10.8%, with the company attributing the reduction to a corporate restructuring programme that permanently lowered core labour costs by 28% and created a leaner operating structure.
Despite these gains, profitability remained under pressure from higher impairment charges. G4S booked P7.9 million in expected credit losses on trade receivables, up from P6.2 million in 2024, largely within its Electronic Security Services division, which serves a predominantly retail customer base. The company also recognised a P4.5 million impairment on goodwill after its market capitalisation fell below its net asset value, a trigger for impairment testing under international accounting standards.
The Manned Guarding Services division emerged as the strongest performer during the year, growing revenue by 8.2% to P121.2 million following new contract wins in the financial services sector. The business also improved labour efficiency through workforce optimisation initiatives, helping expand margins despite operating in what management described as an intensely competitive market.
Cash Solutions recorded revenue of P62.1 million, down 2.1% after the company exited lower-yield contracts. However, gross margins improved to 34.8%, reflecting stronger pricing discipline and tighter cost management. Meanwhile, Electronic Security Services experienced declining revenue but increased profitability after restructuring its alarm response fleet and reducing overhead costs.
Alongside the financial results, G4S acknowledged another delayed publication of its audited financial statements, which were released in early July instead of the regulatory deadline of March 31. The company said staff turnover and reliance on manual financial reporting processes exposed weaknesses in internal controls covering revenue recognition, receivables, impairment testing and lease accounting. The delay resulted in regulatory penalties and, according to management, weakened shareholder confidence.
To address the shortcomings, G4S said it is replacing manual reporting processes with automated systems, strengthening internal controls and improving talent retention within its finance function.
Management said that despite four years of underperformance, the group maintains a strong balance sheet and healthy cash generation, providing capacity to fund operations and future expansion. It plans to focus on higher-margin security products and services while continuing to streamline operations as part of its strategy to restore profitability and eventually resume dividend payments.