MARC HASENFUSS: Safe little nest eggs?
Now might be the perfect time for investment company PSG to fortify its position in CSG Holdings
Those punters looking for safety in numbers at services group CSG Holdings might have been a little rattled by an update that showed the acquisitive security & risk solutions division had taken strain during the year to end-March 2019. More seasoned small-cap pundits, however, might be less surprised — remembering how the old Command Holdings struggled to hold firm at the centre following its acquisition spree after listing in 2000. Of course, CSG is of a better pedigree than Command. In its security arm, the company owns a number of brands, like 7Arrows Security and Hi-Tech Security in Mpumalanga; in its facility management arm, it owns cleaning companies like Afriboom and catering services through CSG Food Solutions; and it has a staffing and recruitment arm too. It means CSG has decent cash flows from a diversified spread of services and it boasts strong(er) shareholders like PSG Alpha. It’s also tempting to give CSG some leeway. The security cluster results reflect the one-off s...
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