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General Information

CSG Limited
CSV
http://www.csg.com.au
IT Consulting & Other Services
483
284

Current Price Data+

Current Price Open High Low Last Close Volume Price Movement
$1.70 $1.68 $1.71 $1.68 $1.70 66845 - ( No change )
  • +Security prices are delayed by least 20 minutes and are indicative only.

Current Broker Consensus Recommendation

Strong Buy
31/07/2015
2

Company Overview

Business Description
CSG Limited (CSV) is a full-service print and business technology solutions provider in Australia and New Zealand. SCG also operates an equipment financing division across both countries to facilitate the sale of its product suite. CSG services customers ranging from small-to-medium enterprises, through to large corporate, government and commercial clients.
Strategy Analysis
Historically CSVĀ“s strategy has been to seek organic growth through aggressively targeting multi-year, annuity contracts and also reaching into new geographies. For acquisitive growth, it made a number of acquisitions in the Print business. But poor management the Canon acquisition resulted in significant underperformance relative to expectations. Following a change of management, current strategy is focused on stabilising the business and improving the performance of Canon. In Print Services the focus is on operational efficiency in Australia and growth through new initiatives in New Zealand. A restructure of the Print Services business is expected to deliver $17m in annual cost savings. The Technology Solutions business has been sold and proceeds will be used to fund debt reduction and a capital return to shareholders. CSG reported NPAT down 41% to $5.21m for the half-year ended 31 December 2012. Revenues from ordinary activities were $91.17m, down 54% from the same period last year. Basic and Diluted EPS was 1.9 cents compared to 3.1 cents last year. The net operating cash outflow was $5.29m compared to $7.76m last year. No interim dividend was declared, compared with 2.5 cents last year.

Financial Summary

Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016 F 0.0 7.5 17.6% 22.5 9.0 5.3% 0.0%
2015 F 0.0 6.4 42.4% 26.5 9.0 5.3% 0.0%
2014 A 14.2 4.5 -34.4% 21.1 0.0 0.0% 0.0%

Peer Comparison

Company Mkt Cap EPS Growth (%) P/E (%) Dividend Yield (%)
2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
CSG (CSV) $477M -0.3440 0.4244 0.1763 37.3333 26.2090 22.2812 0.00% 5.35% 5.35%
SMS Management and Tech (SMX) $246M -0.2935 0.2308 0.0599 17.5344 14.2458 13.4413 3.50% 4.74% 5.02%
UXC (UXC) $305M -0.0514 0.0864 0.0858 15.5085 14.2746 13.1466 4.10% 4.92% 5.58%

Financial Summary

Earnings P/E Ratio P/B Ratio P/E Growth
Company 1.36 26.50 1.88 0.90
Market 0.90 16.20 1.34 1.33
Sector 1.15 23.80 3.25 0.90

Directors

Name Position Start Date
Ms Julie-Ann Kerin Managing Director 21/02/2012
Mr Stephen Robert Anstice Non-Executive Director 20/08/2014
Mr Philip Bullock Non-Executive Director 01/08/2009
Ms Robin Jane Low Non-Executive Director 20/08/2014
Mr Mark Gerard Philips Non-Executive Director 20/08/2014
Mr Tom Donald McKenzie Cowan Non-Executive Director, Non-Executive Chairman 08/02/2012

Management

Name Position
Neil Lynch Chief Financial Officer
Duncan Powell Chief Operating officer
Christopher L Lobb Company Secretary
Stephen Birrell Executive General Manager - Enterprise Solutions
Declan Ramsay Executive General Manager- CSG Business Solutions Australia
Warwick Beban Executive General Manager-CSG Business Solutions New Zealand

Substantial Shareholders

Holding Name
63,899,824 (22.91%) Caledonia (Private) Investments Pty Limited & its Associates
19,924,622 (7.14%) TDM Asset Management Pty Ltd and its associates
17,952,035 (6.43%) Paradice Investment Management Pty Ltd
15,787,643 (5.60%) Lynden Investment (NT) Pty Ltd
13,981,148 (5.01%) Fisher Funds Management Limited

Calendar of Events

Date Event
15 February 2016 Report (Interim)
20 October 2015 Report (Annual)
19 August 2015 Report (Prelim)
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