The security services group cut losses by 74 percent in 2025 as contract repricing, cost reductions and restructuring lifted margins despite weak trading conditions.
GAZETTE REPORTER
G4S Botswana’s revenue increased modestly in 2025 as the company navigated a contracting economy, declining diamond sales and growing financial pressure among businesses reliant on government contracts.
Group revenue rose 0.8 percent, or P1.9 million, during the year, supported mainly by an 8 percent, or P9 million, increase in the manned guarding service line.
The company said the growth was partly offset by declines in cash services and electronic security solutions, whose revenues fell 2 percent and 9 percent respectively, year on year.
“Trading conditions in 2025 continued on the same trajectory as at the back end of 2024 as the economy continued with a contraction albeit at a lower rate than in 2024,” outgoing Group Managing Director Mothusi Molokomme said in the company’s 2025 annual report.
G4S said weaker business development activity, contract terminations and cash-flow constraints, particularly among small and medium enterprises, contributed to debt impairment and weighed on profitability.
Margin Repair
Despite subdued revenue growth, G4S reported a 22 percent year-on-year improvement in gross margin, which it attributed to efficiency measures introduced by management.
In February 2025, management reviewed the profitability of all manned guarding contracts and increased prices on negative and low-profitability contracts. Some customers terminated contracts following the review, but the company said the initiative ultimately improved margins.
An inflationary price increase was also implemented across all service lines in July.
Costs Cut
The electronic security solutions division restructured its direct labour in July, including the exit of 50 percent of technical staff. The company said it adopted a hybrid model in which some technical work is outsourced to pre-approved contractors.
G4S also reduced employee costs in sales, general and administrative functions by 39 percent, contributing to an 11 percent reduction in total administrative costs.
However, the company remained in a loss-before-tax position, partly because of a P4.5 million impairment loss on non-financial assets. The impairment followed a decline in the company’s share price in March 2025, which reduced market capitalisation to approximately P72.8 million, below net asset value and triggering an impairment assessment under IAS 36.
Despite the pressure, G4S said its losses narrowed by 74 percent year on year.
“The Board and Management’s objective to return to profitability remains a top priority,” Molokomme said.
Subsidiary Exit
Facilities Management Botswana increased profit before tax by 4 percent despite a 5 percent decline in revenue.
Access and Beyond Botswana, meanwhile, ceased trading at the end of September after the board approved its closure following two years of recurring losses. The wind-down was expected to be completed by the end of July 2026.
Turnaround Continues
G4S said its two-year turnaround strategy, developed in early 2025, remains focused on restoring profitability.
Molokomme, who resigned as Group Managing Director at the end of April 2026 and was serving notice until the end of July, said he was confident in the foundation established for the turnaround.