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CSG LIMITED (CSV)

CSG LIMITED (CSV)

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General Information
Company Name: CSG Limited
Stock Code: CSV
Website: www.csg.com.au
GICS Sub-Industry: IT Consulting & Other Services
Market Cap ($M): 167
Equiv. Shares (M): 283

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 0.580 $ 0.595 $ 0.595 $ 0.570 $ 0.590 356,322 $ -0.010  -1.695 %

Current Broker Consensus Recommendation more
Recommendation: Sell
Recommendation Date: 31st Jan 2012
12 Month Target Price (average): $0.865
Brokers Surveyed: 3

Company Overview

Business Description:
CSG Limited (CSV) is an Information and Communication Technology (ICT) and consulting company offering end to end technology solutions and services through the company’s two business divisions: Technology Solutions and Print Services.

Strategy Analysis:
CSV´s strategy is to seek organic growth through aggressively targeting multi-year, annuity contracts and also reaching into new geographies. For acquisitive growth, CSV is seeking to purchase companies in industries core to its business, with long term annuity style revenues. CSV is also looking for strategic, small 'bolt-on' acquisitions. CSG reported NPAT up 24% to $39.10m for the year ended 30 June 2011. Revenues from ordinary activities were $388.60m, up 40% from the same period last year. Diluted EPS was 15.60 cents compared to 15.63 cents last year. Net operating cash flow was $14.10m compared to $35.19m last year. The final dividend declared was 3 cents, taking the full year dividend to 5.50 cents compared with 5.50 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  F 28.3 10.0 15.2 5.9 5.0 8.5 100.0
2012  F 24.6 8.7 -25.9 6.8 4.0 6.8 100.0
2011  A 29.4 11.7 -24.7 12.1 5.5 3.9 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F
Computershare (CPU) $4,362 M -0.2338 0.0052 0.2451 15.2161 15.1369 12.1573 0.0357 0.0369 0.0412
CSG (CSV) $158 M -0.2911 -0.0863 0.0748 4.7822 5.2336 4.8696 0.0982 0.0714 0.0893
Iress Market Tech. (IRE) $891 M 0.3689 0.0082 0.0338 15.1371 15.0139 14.5225 0.0542 0.0571 0.0613
Oakton (OKN) $112 M -0.3559 0.1574 0.2025 8.5114 7.3538 6.1157 0.0711 0.0947 0.1100

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
CSV 0.42 5.97 0.58 10.00 0.41
Market 0.82 12.5 1.38 1.21 1.90
Sector 0.58 12.4 1.86 1.43 0.90

Directors
Name Position Start Date
Mr Philip Clinton Chambers Executive Director 19 April 2007
Ms Julie-Ann Kerin Managing Director 31 January 2012
Mr Ian Kew Non-Executive Director 01 March 2007
Mr Philip Bullock Non-Executive Director 01 August 2009

Management
Name Position
Kevin McLaine Chief Financial Officer
Trevor Oliver Chief Information Officer
Kim Clark Company Secretary
David Ward Group General Manager - Print Services
Julie-Ann Kerin Group General Manager - Technology Solutions
Evan Johnson Managing Director, CSG NZ

Substantial Shareholders
Holding Name
18,425,572 (6.52%) Cogent Nominees Pty Limited
15,391,053 (5.45%) Icon Office Solutions Aust. Pty Ltd
15,188,084 (5.38%) Mr & Mrs Andrew Boller and Boltec Pty Ltd (As trustee of the Boller Family Trust)
57,891,495 (20.49%) Lynden Investments (NT) Pty Ltd (As trusteee of the Mackenzie Family Trust)
16,626,279 (5.88%) UBS Wealth Management Australia Nominees Pty Ltd
14,147,896 (5.01%) J P Morgan Nominees Australia Limited
29,283,023 (10.36%) UBS Nominees Ltd

Calendar of Events
Date Event
22 October 2012 Report (Annual)
21 August 2012 Report (Prelim)
14 February 2012 Report (Interim)
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