CSG on track to double profits in 2010

Growing synergies between Print and IT Services business

Growing synergies between the IT and Print service businesses of service provider CSG (ASX:CSV) has resulted in growth across revenues, EBITDA and NPAT for the half year to 31 December 2009.

The company recorded revenue growth of 30 per cent year on year to $111.9m, EBITDA growth of 10 per cent to $23.9m and NPAT up 11 per cent to $12.3m.

CSG CEO Denis McKenzie said in an ASX statement that the company’s IT Services business had a strengthening sales pipeline, margins were down during the half due to new revenue at lower margins.

The Print Services business experienced significant sales of new equipment and highly profitable churn to colour printing, McKenzie said.

The company’s acquisition of KMBS and LSL in New Zealand, and status as preferred tenderer for two major Northern Territory Government contracts were highlights of the half, he said.

“We’re also beginning to see the Federal Government recommence spending on IT, both infrastructure and services,” he said.

The company had also pursued its diversification strategy to avoid the risk associated with being tied to major clients and geographies, McKenzie said.

“We are now in the position where no single geography or relationship accounts for more than one third of profit or revenue,” he said.

The company was also on track to doubling its profit in financial year 2010, McKenzie added.

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