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): 300
Equiv. Shares (M): 279

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 1.075 $ 1.060 $ 1.075 $ 1.050 $ 1.055 31,829 $ 0.020  1.896 %

Company Overview

Business Description:
CSG Limited (CSV) is an Australian print servicing company offering integration and convergence of voice, print and data; delivering and implementing holistic managed print solutions and document output solutions; and leasing solutions for print services equipment. CSV employs 700 staff across Australia and New Zealand with offices in 27 locations.

Strategy Analysis:
Historically CSV¬īs 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 (%)
2014  F 17.6 5.7 26.9 19.0 2.0 1.9 100.0
2013  F 13.3 4.5 26.0 24.1 2.0 1.9 100.0
2012  A 10.0 3.5 -69.8 23.3 2.5 3.0 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F
Computershare (CPU) $7,214 M 0.4276 0.0980 0.0865 22.0241 20.0588 18.4626 0.0216 0.0232 0.0250
CSG (CSV) $294 M 5.0707 -- -- 15.3790 -- -- 0.0000 -- --
IRESS (IRE) $1,391 M -0.0381 0.4579 0.1335 30.6452 21.0197 18.5445 0.0435 0.0435 0.0481
UXC (UXC) $242 M -0.0632 -0.1174 0.3971 12.0579 13.6612 9.7784 0.0707 0.0507 0.0727

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
CSV -- 15.7 1.21 -- 1.92
Market 0.98 16.5 1.26 2.11 1.66
Sector 0.92 19.7 2.91 0.95 2.95

Directors
Name Position Start Date
Ms Julie-Ann Kerin Managing Director 21 February 2012
Mr Ian Kew Non-Executive Director 01 March 2007
Mr Philip Bullock Non-Executive Director 01 August 2009
Mr Tom Cowan Non-Executive Director,Non-Executive Chairman 08 February 2012

Management
Name Position
Neil Lynch Chief Financial Officer
Duncan Powell Chief Operating Officer
Kim Clark Company Secretary
Warwick Beban Executive General Manager CSG Business Solutions, New Zealand
Declan Ramsay Executive General Manager, CSG Business Solutions Australia
Stephen Birrell Executive General Manager, Enterprise Solutions
Dianne Silvestro Executive General Manager, People and Culture

Substantial Shareholders
Holding Name
19,924,622 (7.14%) TDM Asset Management Pty Ltd and its associates
30,117,937 (10.80%) Lynden Investments (NT) Pty Ltd (As trusteee of the Mackenzie Family Trust)
19,092,972 (6.85%) Paradice Investment Management Pty Ltd
60,914,624 (21.84%) Caledonia (Private) Investments Pty Limited & its Associates

Calendar of Events
Date Event
17 February 2015 Report (Interim)
10 October 2014 Report (Annual)
20 August 2014 Report (Prelim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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