CSG posts solid result despite challenging year

CSG posts solid result despite challenging year

ASX-listed ICT company states natural disasters in Queensland and New Zealand along with Fuji Xerox court case had a one-off impact on 2011 financial year results.

Natural disasters in Queensland and New Zealand along with the Fuji Xerox court case had a one-off impact on ICT consulting company, CSG’s (ASX:CSV), 2011 financial results ending June 30.

Despite this, CSG managed to increase its group revenue 39.9 per cent to $388.6 million and net profit reached $40.4 million, an increase of 26.2 per cent.

EBITDA increased 18.5 per cent to $70.3 million on the previous year, but adjusted EBITDA totals $69 million, which includes one-off legal fees of $1.8 million and $2.6 million related to business disruption and integration expenses in the Canon acquisition.

CSG managing director, Denis Mackenzie, said it was solid result against the backdrop of a challenging year for the company.

“The tragic natural disasters in both Queensland and New Zealand during the year were unfortunate, and resulted in a one-off impact on the company,” Mackenzie said in a statement. “We also acknowledge the earnings impact due to the change in our print branches in Queensland as well as the difficulties associated with the Fuji Xerox legal proceedings and moratorium period were worse than expected and the distraction this has caused to staff.”

Mackenzie noted during the past year it was focused on achieving a solid foundation for national growth through its integration of the Canon business and reorganisation of the Technology Solutions business.

For the year ahead, CSG stated its previous investment in software and increased coverage in managed service contracts opened a significant amount of pipeline growth for the company, which it estimates is worth about $512 million.

In May last year, the consulting company landed at $31 million deal with Canon, servicing about 10,500 multifunction machines across Sydney, Melbourne, Adelaide, Canberra and Perth.

Last August, CSG was taken to court by Fuji Xerox after it terminated its contract with the print vendor in favour of its deal with Canon.

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Tags Canoncsgfuji xeroxTechnology SolutionsICT consulting

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