CSG says revenue leap shows growth by acquisition is working
Staffing company CSG announced on Wednesday interim revenue grew 43% to R832.7m.
The revenue growth for the six months to September from the matching period came from acquisitions of security and cleaning industry staff suppliers and also from the increased shareholding in Ukweza.
CSG CEO Pieter Dry said this showed its growth strategy via acquisitions was working.
The company reported a profit after tax of R43m similar to the profit it reported during the matching period last year.
Revenue from the groups staffing solutions division rose 14% to R355.95m, contributing R26.85m to group operating profit. The largest division, facilities management, contributed 40% of operating profit. The industrial and mining support division also did well.
The JSE approved the transfer of CSG’s listing from AltX to the main board effective November 21.
Fellow staffing group Primeserv posted its interim results for the six months to September on Tuesday. It performed slightly worse, reporting only 3% growth in revenue from R287.6m to R297.3m.
Primeserv said that trading conditions were tough but reported a profit of R7m during the period.
Revenue in the staffing and recruitment services segment rose 5% from R266.2m The company’s blue collar staffing unit, specializing in servicing the logistics, warehousing and distribution market, as well as the wholesale and retail, manufacturing and engineering and construction sectors had positive results. But the group said that white collar professional staffing unit faced revenue pressure in some of its markets.
The group said that SA economy remains under pressure and growth prospects in many of the sectors serviced by the group continue to be weak.