DURBAN - CSG Holdings reported a 22% increase in revenue to R2.13billion for the year-end to March, charging that acquisitions it made last year played an important part in lifting its fortunes.
The group said the purchase it made for 100% of Revert Risk Management Solutions issue capital for R100million in May last year added R161.68m to group revenue and R8m to group profit.
“If the acquisition had occurred on April 1, 2017, the group revenue would have been R2.31bn, and group profit for the period would have been R124.90m,” the group said.
CSG Holdings also acquired a 30percent interest in 7Arrows Security, previously known as Security Operations Group, for an undisclosed amount last year.
The group said its operating profit increased 30% to R166.36m during the period under review, while profit after tax increased 27% to R116.17m.
It said headline earnings per share shot up 13% to 21.85cents and earnings before interest, tax, depreciation and amortisation rose 29percent to R186.96m.
“These improvements were achieved through both organic and acquisitive growth, as the additional earnings from the recent security and cleaning acquisitions were included for a full year in the results for the year under review,” the group said.
The board declared a gross final cash dividend of 5c a share, and the dividend has been declared from income reserves.
CSG Holdings is a contract services group that offers a wide range of facilities, such as staffing solutions, facilities management, industrial, mining and related services in southern Africa to a number of mostly blue-chip clients.
It said the facility management unit increased its revenue by 13% to R756.74m and contributed R69.22m to the operating profit of the group.
The group said that the increase was due to organic growth and the Industroserve acquisition.
The group said the security and risk solutions unit was a star performer during the period, with revenue up 78% to R425.98m and contributed R43.12m to the operating profit of the group.
“The increase was a result of the recent security acquisitions and is evidence of the successful strategy to introduce security services as our third division,” CSG said.
It said the staffing solutions division also managed to up its revenue 14percent to R951.87m, and contributed R74.87m to the operating profit of the group, due to greater stability in the temporary employment industry as well as diversification towards other services.
CSG Holdings shares rose 9.4% on the JSE yesterday to close at R1.28.
- BUSINESS REPORT ONLINE