CSG Holdings expects to return to profitability
DURBAN - CSG HOLDINGS said on Tuesday it expected to return to profitability in the six months to the end of September, boosted by the performance of its security division.
The multi-disciplinary support services group said in a trading statement that its headline earnings per share (Heps) were likely to increase by between 120 percent and 140 percent, to between 1.03 cents and 2.08c a share, compared with a loss of 5.27c reported last year.
Its earnings per share (Eps) were expected to increase by between 119 percent and 139 percent,to between 1.02c and 2.09c, compared with a loss of 5.33c reported last year.
“The increase in Eps and Heps is mainly due to the improved performance of the security division due to the aggressive turnaround plan implemented for the underperforming security companies, the cost-cutting measures and salary cuts implemented during the lockdown period, together with assistance from government through additional employment tax incentives and skills development levy payment holidays,” the group said.
The group operates three divisions, which include CSG Facilities, CSG Security and CSG People (staffing solutions).
The group’s Heps from continuing operations were expected to increase by between 19 percent and 39 percent, to between 2.22c and 2.60c, compared with Heps from continuing operations of 1.88c reported last year.
Eps from continuing operations were expected to increase by between 22 percent and 42 percent, to between 2.21c and 2.57c, up from last year’s Eps from continuing operations of 1.82c.
In the group’s results for the year to the end of March, it reported that it was in the process of disposing of the 7 Arrows business, which had been classified as discontinued operations in the expected results.
“The effective date of the sale was October 1. The September 30, 2019 results have been restated to reflect the 7 Arrows business as discontinued operations,” the group said. It said the reclassification had no effect on last year’s Eps and Heps, but rather the split between continued and discontinued operations.
As a result, its Heps from discontinuing operations was expected to increase by between 78 percent and 98 percent, to between 0.14c and 1.57c, reversing a loss of 7.15c compared to last year. Eps from discontinued operations was expected to increase by between 78 percent and 98 percent, to be between 0.12c and 1.55c, reversing a loss of 7.15c compared to last year.
The group expects to release its half-year results on November 20.