Preliminary Unaudited
Financial Statements
G4S (Botswana) Limited | for the year ended 31 December 2022 |
Key highlights in million Pula Full Year ended
31 December 2022
250.00
200.00 | |||||||
212.46 | 199.57 | ||||||
150.00 | |||||||
100.00 | Key Highlights in milliions | ||||||
50.00 | 96.72 | 88.64 | |||||
0.00 | 40.67 | 51.29 | 6.42 | 24.5 | |||
December 2022 | December 2021 |
FINANCIAL HIGHLIGHTS | GROUP KPI'S
STATEMENT OF COMPREHENSIVE INCOME | Unaudited | Audited & Restated | ||||||||
for the year ended 31 December 2022 | Year ended | Year ended 31 | ||||||||
31 December | December | |||||||||
2022 | 2021 | |||||||||
P´000 | P´000 | |||||||||
Continuing operations | 212,460 | 199,565 | ||||||||
Revenue | ||||||||||
Cost of goods sold | -7,354 | -5,493 | ||||||||
Cost of providing services | -164,440 | -142,783 | ||||||||
Gross profit | 40,665 | 51,289 | ||||||||
Other income | 875 | 2,518 | ||||||||
Movement in credit loss allowances | 3,821 | 4,479 | ||||||||
Administrative expenses | -40,238 | -35,209 | ||||||||
Operating profit | 5,124 | 23,076 | ||||||||
Finance income | 2,547 | 3,008 | ||||||||
Interest paid | -1,250 | -1,556 | ||||||||
Profit before taxation | 6,421 | 24,528 | ||||||||
Taxation | -1,594 | -4,957 | ||||||||
Profit after tax | 4,826 | 19,571 | ||||||||
Total comprehensive income for the year | 4,826 | 19,571 | ||||||||
Profit attributable to: | 4,859 | 19,416 | ||||||||
Owners of the parent of the company | ||||||||||
Non-controlling interest | -32 | 155 | ||||||||
4,826 | 19,571 | |||||||||
Earnings per share (thebe) | 6.07 | 24.27 | ||||||||
STATEMENT OF FINANCIAL POSITION | Unaudited | Audited | ||||||||
for the year ended 31 December 2022 | Year ended | Year ended 31 | ||||||||
31 December | December | |||||||||
2022 | 2021 | |||||||||
P´000 | P´000 | |||||||||
Assets | ||||||||||
Non-Current Assets | 24,101 | 14,309 | ||||||||
Property, plant and equipment | ||||||||||
Right-of-use assets | 11,235 | 14,988 | ||||||||
Goodwill | 9,715 | 9,715 | ||||||||
Deferred tax | 4,411 | 5,479 | ||||||||
49,462 | 44,491 | |||||||||
Current Assets | 6,254 | 5,478 | ||||||||
Inventories | ||||||||||
Amounts due from related parties | 50,369 | 59,327 | ||||||||
Trade and other receivables | 52,262 | 37,462 | ||||||||
Current tax receivable | 2,925 | 672 | ||||||||
Cash and cash equivalents | 12,051 | 16,027 | ||||||||
123,861 | 118,966 | |||||||||
Non current assets held for sale | 0 | 5,264 | ||||||||
Total Assets | 173,323 | 168,721 | ||||||||
Equity and Liabilities | ||||||||||
Equity | ||||||||||
Equity Attributable to Equity Holders of Parent | 1,805 | 1,805 | ||||||||
Stated capital | ||||||||||
Retained income | 119,712 | 114,853 | ||||||||
121,517 | 116,658 | |||||||||
Non-controlling interest | 1,366 | 1,398 | ||||||||
122,883 | 118,056 | |||||||||
Liabilities | ||||||||||
Non-Current Liabilities | 9,352 | 12,117 | ||||||||
Finance lease liabilities | ||||||||||
Current Liabilities | 35,562 | 27,208 | ||||||||
Trade and other payables | ||||||||||
Loans from group companies | 1,092 | 3,393 | ||||||||
Finance lease liabilities | 4,435 | 5,413 | ||||||||
Provisions | 0 | 984 | ||||||||
41,089 | 36,998 | |||||||||
Non-current liabilities of held for sale | 0 | 1,550 | ||||||||
Total Liabilities | 50,440 | 50,665 | ||||||||
Total Equity and Liabilities | 173,323 | 168,721 | ||||||||
STATEMENTS OF CHANGES IN EQUITY | ||||||||||
for the year ended 31 December 2022 | ||||||||||
Stated | Retained | Total | Non | Total | ||||||
capital | income | controlling | equity | |||||||
interest | ||||||||||
P´000 | P´000 | P´000 | P´000 | P´000 | ||||||
GROUP | ||||||||||
Balance at 01 January 2021 (Audited & restated) | 1,805 | 111,137 | 112,942 | 1,753 | 114,695 | |||||
Profit for the year | 0 | 19,416 | 19,416 | 155 | 19,571 | |||||
Dividends paid | 0 | -15,700 | -15,700 | -510 | -16,210 | |||||
Balance at 31 December 2021 (Audited & restated) | 1,805 | 114,853 | 116,658 | 1,398 | 118,056 | |||||
Balance at 1 January 2022 (Audited & restated) | 1,805 | 114,853 | 116,658 | 1,398 | 118,056 | |||||
Profit for the year | 0 | 4,859 | 4,859 | -32 | 4,827 | |||||
Balance at 31 December 2022 (Unaudited) | 1,805 | 119,712 | 121,517 | 1,366 | 122,883 | |||||
STATEMENTS OF CASH FLOWS | ||||||||||
for the year ended 31 December 2022 | ||||||||||
GROUP | Unaudited | Audited & Restated | ||||||||
2022 | 2021 | |||||||||
P´000 | P´000 | |||||||||
Cash flows from operating activities | ||||||||||
Cash flows generated from operations | 22,041 | 29,586 | ||||||||
Taxation paid | -1,678 | -10,085 | ||||||||
Net cash flows generated from operating activities | 20,363 | 19,501 | ||||||||
Cash flows from investing activities | ||||||||||
Purchase of property, plant and equipment | -18,600 | -13,107 | ||||||||
Sale of property, plant and equipment | 0 | 61 | ||||||||
Interest received | 15 | 66 | ||||||||
Net cash flows utilised in investing activities | -18,585 | -12,980 | ||||||||
Cash flows from financing activities | ||||||||||
Payment on lease liabilities | -5,617 | -8,033 | ||||||||
Dividends paid | 0 | -16,210 | ||||||||
Interest paid | -1,250 | -1,556 | ||||||||
Net cash flows utilised in financing activities | -6,868 | -25,798 | ||||||||
Movement in cash and cash equivalents | -5,090 | -19,278 | ||||||||
Cash and cash equivalents at the beginning of the year | 16,027 | 35,304 | ||||||||
Cash and cash equivalents of discontinued operations | 1,114 | 0 | ||||||||
Total cash and cash equivalents at the end of the year | 12,051 | 16,027 |
GENERAL INFORMATION
G4S (Botswana) Limited is a company registered under the Companies Act, 2003 of Botswana and domiciled in Botswana. The financial statements comprise the company and its subsidiary (together referred to as the 'Group').
BASIS OF PREPARATION
The annual financial statements for the year ended 31 December 2022, have been prepared in accordance with International Financial Reporting Standards ("IFRS"). The financial information is presented in Botswana Pula.The annual financial statements have been prepared under the supervision of the Acting Finance Director, Mr Ketshepemang Mothetho (ACA) and the results published are unaudited.The board approved the annual financial statements for the year ended 31 December 2022 for issue on 31 March 2023.
The Company's auditors, Deloitte and Touche, have not yet issued an opinion on the annual financial statements as the audit is still ongoing. Any investment decisions by investors should be exercised with caution on the consideration of this set of unaudited consolidated financial statements. A copy of the full set of annual financial statements are available for inspection at the registered office of the Company.
ACCOUNTING POLICIES
The accounting policies adopted are consistent with those of the previous financial year. Amendments to IFRS effective for the financial year ending 31 December 2022 have been addressed during the year. New accounting standards and interpretations that have been published that are not effective for 31 December 2022 reporting periods have not been adopted by the Group. These standards are not expected to have a material impact on the entity or its transactions in the current or future reporting periods.
USE OF JUDGEMENTS AND ESTIMATES
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense.Actual results may differ from these estimates. In preparing these financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were similar to those applied to the consolidated financial statements for the year ended 31 December 2021.
KEY HIGHLIGHTS & FINANCIAL PERFORMANCE YEAR ON YEAR COMPARISON Revenue performance for the period increased by 6% year on year driven primarily by good growth in the MSS service line. The top line growth was despite the contract losses experienced during the period under review primarily because of the new citizen economic empowerment legislation.The Cash service line grew marginally by 4% while the Systems security service remained largely unchanged as it continues to experience intense competition from new entrants particularly in the Alarm Monitoring and Response (AMR) space. A Price Increase (PI) was levied on our MSS customers in January 2022 following a statutory wage increase by the Government which had a marginal impact on the revenue line. Additionally, a marginal inflationary adjustment was passed to some of our cash customers (fuel surcharge) as a response to the abnormally high fuel prices experienced during the year while in the Security systems service line the business passed a 5% increase in pricing to monthly customers from July 2022.
The significant decline in gross profit for the year was as a result of the abnormal price increases on fuel - fuel expenses increased by 88% for the full year, compared to prior year adding significantly to total cost. Additionally due to the heightened security risk environment, the business invested in enhanced security upgrades to its infrastructure specifically in the cash service line (investment in live monitoring of all cash vehicles) which further added to the cost of providing service putting further pressure to total costs.
The significant miss in Gross Profit (GP) largely drives the decline in the profit before tax (PBT) year on year. Added to the PBT decline is the increase in administrative expenses owing to the normalisation of the alarm monitoring and response (AMR) teams wherein from September 2021 Management added back the full crew complement to the AMR response crew structure which had been reduced during 2020 - effectively experiencing the full cost of this change in the whole of 2022 while in 2021 this was only experienced for 4 months. Additionally other income did not yield a comparatively higher interest as compared to prior year as a result of the prevailing investment climate with lower yield effectively shedding over 65% compared to the prior year.
OUTLOOK
The Group continues to focus on growing revenue following encouraging increases in revenue quarter on quarter for both Q3 and Q4 2022, indicating that revenue lost during H1 2022 is systematically being recovered. We will continue driving the sale of integrated security solutions to ensure that we remain at the forefront of security capability in Botswana.The trading conditions remain challenging with significantly fewer opportunities than in prior years (primarily due to CEE legislation). As a response, Management continues to drive its commercial strategy of focusing on industry-specific growth (such as the retail growth strategy that has driven the H2 MSS revenue growth. The infusion of technology into our service offering has also been successful as a revenue driver. Specific focus for the year is on cost management with driving efficiencies across the business and continued fuel management aimed at managing profitability. Despite the reduced performance of the company, in lieu of stated reasons, the Board of Directors and Management are confident of the company's going concern status and will continue to work hard towards improved profitability in the foreseeable future.
NON-CURRENT ASSETS HELD FOR SALE
The G4S subsidiary ¨G4S Facilities Management Pty (Ltd) was held for sale and in 2022 it ceased to be held for sale and hence its results fully consolidated with G4S Botswana Limited results.
RELATED PARTY TRANSACTIONS
There has been no significant change in the nature of related party transactions from those reported in the annual financial statements for the year ended 31 December 2021.
EVENTS OCCURRING AFTER REPORTING DATE
There were no significant events that occurred after the reporting date that required adjustment to or disclosure in the annual financial statements for the year ended 31 December 2022.
SEGMENT REPORTING
A segment is a distinguishable component of the Group that is engaged either in providing related products or services (business segment) or in providing products or services within a particular economic environment (geographic segment) which is subject to risks and rewards that are different from those of other segments. The business activities of the Group are concentrated in the segment of security related services and are provided within the geographical region of Botswana, therefore geographical segmental information is not considered necessary. Management identifies three of its five service lines as its reportable segments.The Executive Management monitors the performance of these service lines and makes decisions on the allocation of resources to them. Segmental performance is monitored using adjusted segment operating results. Revenue and assets of reportable segments exceed 10 percent of the consolidated revenue and assets reported by the Group.
REVENUE | BWP212.4M | 6.5% INCREASE | |||||
2021: BWP199.5M | |||||||
MSS REVENUE | BWP96.72M | 9.1% INCREASE | |||||
2021: BWP88.63M | |||||||
GROSS PROFIT | BWP40.67M | -20.7% | DECLINE | ||||
2021:BWP51.29M | |||||||
PROFIT BEFORE TAXATION | BWP6.4M | -73.8% | DECLINE | ||||
2021:BWP24.5M | |||||||
SEGMENTS | |||||||
GROUP BUSINESS | Security | Manned | Cash | ||||
SEGMENTS | Systems | Security | Solutions | ||||
31 December 2022 | |||||||
P´000 | P´000 | P´000 | |||||
Revenue | 47,107 | 96,725 | 63,174 | ||||
Direct labour | -15,823 | -73,392 | -18,919 | ||||
Direct vehicles | -12,193 | -6,481 | -9,357 | ||||
Direct other costs | 1,457 | -4,537 | -9,658 | ||||
Cost of sales | -26,559 | -84,411 | -37,934 | ||||
Gross profit | 20,548 | 12,314 | 25,240 | ||||
SG&A labour | -1,908 | -2,192 | -1,725 | ||||
SG&A vehicles | 0 | -124 | -185 | ||||
SG&A other costs | -5,827 | -3,919 | -17,463 | ||||
SG&A expenses | -7,735 | -6,235 | -19,373 | ||||
Trading profit | 12,813 | 6,079 | 5,868 | ||||
Other income/expenses | 622 | 953 | 464 | ||||
Profit before taxation | 13,435 | 7,032 | 6,332 | ||||
Taxation | -1,466 | -2,244 | -1,093 | ||||
Profit for the period | 24,941 | 4,788 | -7,733 | ||||
Material non-cash items | |||||||
Group | |||||||
31 December 2022 | -3,110 | -5,224 | -6,180 | ||||
Depreciation | |||||||
Finance income | 143 | 280 | 192 | ||||
Finance cost | -285 | -584 | -382 | ||||
Segment assets | |||||||
Group | |||||||
31 December 2022 | 70,304 | 34,252 | 39,278 | ||||
Total assets | |||||||
Total liabilities | -16,050 | -9,119 | -10,943 | ||||
GROUP BUSINESS | Security | Manned | Cash | ||||
SEGMENTS | Systems | Security | Solutions | ||||
31 December 2021 | |||||||
P´000 | P´000 | P´000 | |||||
Revenue | 45,114 | 88,636 | 60,939 | ||||
Direct labour | -14,860 | -64,648 | -17,152 | ||||
Direct vehicles | -5,153 | -3,558 | -7,954 | ||||
Direct other costs | -10,065 | -6,327 | -12,510 | ||||
Cost of sales | -30,077 | -74,533 | -37,616 | ||||
Gross profit | 15,037 | 14,103 | 23,323 | ||||
SG&A labour | -4,342 | -7,610 | -4,925 | ||||
SG&A vehicles | -120 | -140 | -69 | ||||
SG&A other costs | -3,710 | -4,005 | -3,684 | ||||
SG&A expenses | 8,172 | -11,754 | -8,678 | ||||
Trading profit | 6,854 | 2,349 | 14,645 | ||||
Other income/expenses | 140 | 274 | 189 | ||||
Profit before taxation | 7,005 | 2,623 | 14,834 | ||||
Taxation | -1,058 | -2,078 | -1,429 | ||||
Profit for the period | 5,947 | 545 | 13,405 | ||||
Material non-cash items | |||||||
Group | |||||||
31 December 2021 | -3,430 | -1,717 | 5,033 | ||||
Depreciation | |||||||
Finance income | 696 | 1,368 | 941 | ||||
Finance cost | -335 | 676 | 452 | ||||
Segment assets | |||||||
Group | |||||||
31 December 2021 | 69,200 | 39,318 | 47,182 | ||||
Total assets | |||||||
Total liabilities | -15,960 | -9,068 | -10,882 |
The above segmentation excludes immaterial non-reportable segments and the head office, which bears
centralised costs.
The directors of G4S (Botswana) Limited ("the Company") are responsible for the financial statements of the Company and its subsidiary.Their responsibility includes the maintenance of financial records and the preparation of the financial statements consistent with the accounting policies of G4S (Botswana) Limited, which comply with International Financial Reporting Standards ("IFRS"). The company and subsidiary maintains systems of internal control, which are designed to provide reasonable assurance that the financial records accurately reflect its transactions, and to provide protection against serious misuse of Group's assets. The directors are also responsible for design, implementation, maintenance and monitoring of these internal controls. Nothing has come to the attention of the directors to indicate that any significant break down in the functioning of these systems has occurred during the period under review.
The Board of Directors has reviewed and approved the accompanying condensed financial statements for issue on 31 March 2023.
Signed on behalf of the Board of Directors
________________________ | |
T. Mbaakanyi | M. Molokomme |
Board Chairperson | Managing Director |
31 | March 2023 |
Registered Address
Plot 20584 Western Bypass P.O. Box 1488 Gaborone Botswana
Auditors: Deloitte & Touche, Deloitte House, Plot 64518, Fairgrounds, Gaborone, Botswana,
BOARD OF DIRECTORS
M. Molokomme*,T. Mbaakanyi*, L. Mosetlhanyane*, C.M Motswaiso*, T.K Matthews*, R.Smit**
* Motswana ** South African
Cash Solutions | Manned Security | Systems | Cleaning | Facilities Management | Securing Your World |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
G4S Botswana Limited published this content on 31 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 March 2023 14:08:08 UTC.