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CSG looks to increase geographic might

ASX-listed integrator sees net profits rise 11 per cent to $12.3m in the first half

CSG has attributed strong revenue and profit growth in the past six months to stronger IT and print services uptake.

The ASX-listed integrator reported a 30 per cent rise in revenue over the first-half to December 2009 to $111.9 million. Pre-tax profits also rose 10 per cent to $23.9m. Net profits jumped 11 per cent to $12.3m.

In a statement, CSG managing director, Denis Mackenzie, said both its IT services and print divisions contributed to growth. Although margins across IT services dropped during the first-half, a strengthening pipeline presented expanding market opportunities, he said. IT services sales hit $80.4m, while print services revenue was $31.3m.

Mackenzie predicted CSG would be twice its size by the next financial year, and looked to double profit every two years. He highlighted its focus on diversifying business lines to reduce its dependency on geography and select customer relationships.

CSG was recently appointed a preferred tendered on two Northern Territory Government contracts covering desktop and server management, along with network management.

Alongside organic growth, the group has been busy snapping up a range of organisations to bolster its offerings. CSG acquired Oracle partner, Delexian, in July last year for $13.5m, as well as Commander’s managed services business in October 2008 after the company was placed in receivership.

Most recently, it picked up Konica Minolta Business Solutions (KMBS) for $85m, and Leasing Solutions for $20m in New Zealand. Although CSG reduced its total debt to Mackenzie warned CSG’s overall debt would rise as a result of the acquisition, but should remain under twice its pre-tax result. The integrator’s total liabilities sit at just over $67m.

Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.

More about: Commander, CSG, etwork, Konica, Konica Minolta, Minolta, Minolta-QMS, Northern Territory Government, Oracle
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