(Company Registration No.: CO1978/2242)

Transcription

1 1 Securing Your World Condensed Financial Statements (Unaudited) (Company Registration No.: CO1978/2242)

2 Notes to the condensed financial statements 2 Unaudited Consolidated Summarised Financial Results for the six months ended 30 June 2018 Financial Highlights GROUP KPI S The Consolidated Summarised financial Statements were prepared under the historical cost convention using accounting policies that comply with International Financial Reporting Standards ( IFRS ), with no significant changes in recognition of measurement rules applied compared to the previous financial year. Subsequent Events The Board and Management are not aware of any material events that have occurred subsequent to the end of the reporting period that require adjustment or disclosure in the financial statements. Segmental 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 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. Financial performance Group revenue slowed by 2%, owing to an undesirable product mix, a muted contribution of one off business in electronic systems and our facilities management enterprise partially offset by limited pricing liberalisation of resources in variable cost inputs. Key highlights We created and preserved wealth leading to cash expansion by 32% boosted by retention of key contracts. Revenue Group revenue declined by 2% driven by a negative product mix and limited pricing partially offset by limited pricing and productivity efficiency gains. Profit from operations grew by 1% due to variable cost driven efficiency iniatives. Cash and cash equivalents increase by a double digit 32% as a result of heightened collection efforts and timing related investment decisions. Gross Profit 2% BWP44m (2017: BWP43.3m) Profit from Operations 1% BWP19.5m (2017: BWP19.3m) Cash & Cash Equivalents 32% BWP38.7m (2017: BWP29.3m) Prospects We strive to put our customer first and have set-up a customer focused customer management centre to deal with customer satisfaction and provide unrivalled customer experience. Dividend Declaration Notice is hereby given that gross interim dividend of thebe per share in respect of the half year ended 30 June 2018 was declared on 26th September 2018 for payment to those ordinary shareholders in the books of the company at the close of business on Friday 12th October Net dividend will be paid on or around 23 November Registered Address: Plot Western Bypass P.O. Box 1488 Gaborone Botswana Security Systems Growth 4% BWP32.9m (2017: BWP31.7m)

3 3 Directors responsibility statement (Unaudited) for the period ended 30 June 2018 The directors of ( the Company ) are responsible for these condensed financial statements of the Company and its subsidiary. Their responsibility includes the maintenance of financial records and the preparation of the condensed financial statement in accordance with International Accounting Standard 34, Interim Financial reporting. The directors are also responsible to ensure that the basis of preparation is 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, set out on pages 4 to 12, for issue on 28th September Chairman Managing Director

4 4 Condensed Financial Statements (Unaudited) Statements of Comprehensive Income for the period ended 30 June 2018 Half year ended Half year ended Year ended June June 2017 December 2017 (Unaudited) (Reviewed) (Audited) P 000 P 000 P 000 Revenue Cost of sales (64 390) (67 356) ( ) Gross Profit Other income Administrative expenses (24 971) (24 083) (48 396) Profit from operations Restructuring expenses (2 389) - - Finance expense (1) (1) (952) Finance income Profit before taxation Taxation (4 105) (4 577) (8 982) Profit for the year Other comprehensive income Total comprehensive income Profit attributable to: Equity holders of the parent company Non-controlling interest Basic and diluted earnings per share (thebe) Dividends per share (thebe) (gross of tax)

5 5 Condensed Financial Statements (Unaudited) Statements of Financial Position As at 30 June 2018 Half year ended Half year ended Year ended June June 2017 December 2017 (Unaudited) (Reviewed) (Audited) P 000 P 000 P 000 Assets Non-current assets Plant and equipment Goodwill Deferred taxation Total non-current assets Current assets Inventories Trade and other receivables Amount due from related parties Cash and cash equivalents Total current assets Total assets Equity & liabilities Equity Stated capital Dividend reserve Retained earnings Non-controlling interest Total equity Non-current liabilities Operating lease accrual Total non-current liabilities Current liabilities Trade and other payables Current tax liability Interest bearing borrowings Amounts due to related parties Total current liabilities Total equity and liabilities

6 6 Condensed Financial Statements (Unaudited) Statements of Changes in Equity As at 30 June 2018 Stated Dividend Retained Total Non- Total capital reserve earnings controlling Equity interest P 000 P 000 P 000 P 000 P 000 P 000 Balance at 1 January Total comprehensive income Transactions with owners of the company: Dividends paid - (7 872) - (7 872) - (7 872) Dividends proposed Balance at 30 June Balance at 1 January Adjustment Restated Equity at the beginning of the financial year Total comprehensive income Transactions with owners of the company: Dividends paid - (9 600) - (9 600) (1 717) (11 317) Dividends proposed Balance at 30 June

7 7 Directors responsibility statement (Unaudited) for the period ended 30 June 2018 GENERAL INFORMATION is a company registered under the Companies Act, 2003 of Botswana and domiciled in Botswana. The condensed financial statements comprise the company and its subsidiary (together referred to as the Group ). These condensed financial statements have been reviewed, not audited. The condensed financial statements were approved for issue on 26th September BASIS OF PREPARATION These condensed financial statements for the period ended 30th June 2018 have been prepared in accordance with IAS 34, Interim financial reporting. The condensed financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2017, which have been prepared in accordance with International Financial Reporting Standards (IFRS). 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 2017 are not expected to have a material impact on the group. USE OF JUDGEMENTS AND ESTIMATES The preparation of condensed 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 condensed financial statements, the significant judgements made by management in applying the group s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December PROFIT BEFORE INCOME TAX No items of an unusual nature, size or incidence have been charged to operating profit during the review period. INCOME TAX Income tax expense is recognised based on management s estimate of the weighted average annual income tax expected for the full financial year. The estimate average annual tax rate used for the period to 30 June 2018 is 22% (the estimated tax rate for the year ended 31 December 2017 was 22%).

8 8 Directors responsibility statement (Unaudited) for the period ended 30 June 2018 (continued) FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS FINANCIAL RISK FACTORS The group s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The condensed financial statements do not include all financial risk management information and disclosures required in the annual financial statements; they should be read in conjunction with the group s annual financial statements as at 31 December There have been no changes in the risk management department or in any risk management policies since the year end. LIQUIDITY RISK Compared to year end, there was no material change in the contractual undiscounted cash out flows for financial liabilities. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES MEASURED AT AMORTISED COST The fair value of the following financial assets and liabilities approximate their carrying amount; Trade and other receivables Other current financial assets Cash and cash equivalents Borrowings Trade and other payables CONTINGENT LIABILITIES AND COMMITMENTS There has been no significant change in the nature and quantum of contingent liabilities and commitments with off-balance sheet risk from those reported in the annual financial statements for the year ended 31 December RELATED PARTY TRANSACTIONS There has been no significant change in the nature and quantum of related party transactions from those reported in the annual financial statements for the year ended 31 December EVENTS OCCURRING AFTER REPORTING DATE There were no other material changes in the affairs of the Company between the 30 June 2018 year end and the date of the approval of this condensed consolidated financial information.

9 9 Directors responsibility statement (Unaudited) for the period ended 30 June 2018 (continued) 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 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. Sales between segments are carried out at arm s length. The revenue from external parties reported to the chief operating decision maker (CODM) is measured in a manner consistent with that in the income statement. SEGMENT RESULTS Security Manned Cash Facilities Cleaning Total Systems Security Solutions Management Services Segments P 000 P 000 P 000 P 000 P 000 P 000 Revenue Cost of sales (14 898) (25 730) (17 114) (954) (6 300) (64 996) Gross Profit Other (loss)/income (10) (2) 465 Administrative expenses (11 531) (6 356) (7 768) (551) (686) (26 892) Profit from operations (1 256) (113) Finance expense Finance income Profit before taxation (102) SEGMENT RESULTS Security Manned Cash Facilities Cleaning Total For the period ended 30 June 2017 Systems Security Solutions Management Services Segments P 000 P 000 P 000 P 000 P 000 P 000 Revenue Cost of sales (16 788) (25 968) (17 105) (877) (6 998) (67 736) Gross Profit Other (loss)/income Administrative expenses (9 654) (5 839) (6 269) (927) (1 394) (24 083) Profit from operations (415) Finance expense (1) (1) Finance income Profit before taxation (400)

10 10 SEGMENT RESULTS (continued) SEGMENT ASSETS AND LIABILITIES Security Manned Cash Facilities Cleaning Total 30 June 2018 Systems Security Solutions Management Services Segments P 000 P 000 P 000 P 000 P 000 P 000 Total assets Total liabilities (15 606) (15 752) (15 310) (979) (5 910) (53 558) 30 June 2017 Total assets Total liabilities (20 285) (11 525) (13 830) (461) (3 081) (49 182) 31 December 2017 Total assets Total liabilities (14 720) (8 363) (10 036) (334) (2 570) (36 023)