CSG continues impressive run of results

ASX-listed IT services provider, CSG (ASX:CSV), has reported profit growth of 35 per cent year on year, pocketing $31.5 million in the 12 months to 30 June.

In a statement to the ASX, CSG attributed some of the rise to the acquisitions of KMBS and LSL in New Zealand.

Revenues also grew 41 per cent to $277 million, while EBITDA was up 20 per cent to $59 million.

CEO Denis Mackenzie said he was “excited” by the success of the acquisitions in what he called “volatile markets”.

“Whilst we have made a number of acquisitions in order to build a national platform, 42 per cent of this revenue growth has been organic,” he said in the statement. “The underlying net profit after tax of $34.4m after adding back one off costs is a very pleasing outcome.”

In July, CSG made good on its expansion into South Australia, announcing managed services contracts with five government agencies that would contribute more than $12 million to the books in the next financial year.

In April last year, CSG followed on from strong half-yearly results to announce it would open up the new office facility in Norwood, South Australia with plans to bring on 100 new staff.

That news came on the back of the managed service provider signing on to the South Australian Government’s Distributed Computing Support Services (DCSS) contract.

CSG has a strong presence in SA through arrangements with BHP Billiton Olympic Dam and Mitsubishi Motors Australia.

Earlier this year, subsidiary CSG Services was selected as a Preferred Tenderer for two desktop and server services and network management contracts with the Northern Territory Government.

CSG also supplies ICT services to Queensland, Western Australia, South Australia, Victoria and Federal Governments.

More recently, it signed a $31 million deal with Canon to take over the servicing of 10,500 multi-function devices (MFDs).

CSG also became a Canon MFD dealer in Sydney, Melbourne, Canberra, Adelaide and Perth in addition to its arrangement with Fuji Xerox.

Copyright © 2010 IDG Communications, Inc.

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