Rising print sales help boost CSG's half-year
- 15 February, 2011 16:09
Northern Territory-based IT services provider, CSG, has attributed positive half-year results to increasing sales in the print business and the acquisition of Konica Minolta Business Solutions in New Zealand.
In the first half year to December 31, CSG’s revenue was up 67 per cent to $186.4 million and earnings before tax was also up 42 per cent to $33.9 million.
Net profit was also up 53 per cent to $18.8 million, compared to the previous corresponding period.
CSG CEO, Denis Mackenzie, said there had been significant disruption in the half-year with the litigation affecting its original Australian print business, a large ramp up of its print business into new geographies and integration of its two IT businesses to create one division – Technology Solutions.
Fuji Xeroxissued proceedings against the ASX-listed provider in August to determine whether its termination was valid and the obligations of both parties had been met post-termination.
Despite this, CSG said its print business created a platform to generate further organic growth during the next few years.
“The Australian print business had a large integration project to treble the size of the business after adding approximately 10,500 service contracts from Canon on July 1,” he said. “This involved opening five new offices and warehouses, employing and contracting sales people, technicians, administration people and adding to the management team.”
Mackenzie indicated its Technology Solutions business experienced a challenging half-year due to delays in contracted work commencing and the rollover of NT contracts.
“We will continue to invest in replicable solutions in certain areas and continue to build our East coast business and concentrate on existing vertical expertise,” Mackenzie said.
“The pipeline is strong across our Oracle and education product lines in particular and we have a strong focus on people capability in an increasingly tight labour market in Technology Solutions."
CSG’s CFO, Kevin McLaine, will step down in September with deputy CFO, Guy Steel, taking the position. McLaine has held the CFO position since 2007.
The integrator has also appointed Josef Czyzewski as a non-executive director, filling in the vacancy left by Andrew Kroger.