CSG ramps up business investment for future growth
- 16 February, 2015 11:02
A significant investment in its enterprise solutions business and additional executives and staff hires are set to pave the way for future growth for IT services provider, CSG (ASX:CSV).
For the first half of FY15 ending December 31, the IT services provider saw revenue increase 14 per cent to $108.2 million and net profit also grew 42 per cent to $7.6 million compared to the same time last year.
CSG’s Enterprise Solutions division won a string of significant new customers including Victoria University, Auckland District Health Board and Fonterra. It was also appointed to the whole of Queensland government’s Standing Offer Arrangement for the provision of print and imaging as a service.
The division’s revenue grew 84 per cent on the previous corresponding period and has developed a significant pipeline of annuity contract opportunities that will drive growth in 2016 financial year and beyond.
Its Business Solutions division saw equipment revenue grow 26 per cent and profit before tax grow 22 per cent. Its professional services team in New Zealand produced 83 per cent revenue growth. In August the division sold non-print Samsung products in Australia and was also preparing to launch its partnership in New Zealand under the CSG Solutions banner in February.
CSG stated the average sale of non-print technology was maintained at $30,000 per customer and four per cent of total deals in Australia contained an attached non-print equipment sale.
Its Finance Solutions division lease receivable book increased 36 per cent year on year to $188.6 million. The Australian business managed to convert 95 per cent of customers to CSG Finance products.
For the 2015 financial year, CSG expects EBITDA to range between $32 million to $34 million, presenting a 10 per cent to 17 per cent growth on FY14 and revenue to grow at least 10 per cent to greater than $220 million.