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CSG 1H profit jumps 53%

CSG 1H profit jumps 53%

ICT services and consulting company CSG Limited (ASX:CSV) grew its first-half profit 53% to $18.8 million in 1H11, as a recent New Zealand acquisition began to pay off.

The company recorded 67% higher revenue of $186.4 million, thanks to the contributions of what was formerly Konica Minolta Business Solutions New Zealand.

CSG bought this unit, and exclusive finance services provider Leasing Solutions Limited, in an acquisition which closed in February last year.

Increasing revenue at the expanding Australian printing division also contributed to the gains.

CEO Denis Mackenzie said he was pleased with the result, especially considering the disruptive events CSG dealt with in 2010 - including litigation, the tripling of size of its print business and the integration of its two IT businesses into one Technology Solutions division.

“Non-recurring costs have been significant across the business, however this has been offset by a write back of deferred consideration,” he said.

“All in all, we remain excited about the future at CSG,” he said, noting that the board has reaffirmed a dividend payout ratio of between 30% and 40% for the foreseeable future.

CSV shares fell 1.49% during Tuesday's trading to $1.325.

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Tags Denis MackensiecsgASX:CSGit servicesfinancial results

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