CSG has reported an $11 million jump in net profit for its 2012 financial year, despite forking out $25.9 million to restructure its underperforming print division.
Earlier this year CSG announced a company-wide restructure following the sale of its technology solutions division to rival NEC. The technology solutions unit was sold for $225.7 million on July 2, during CSG”s 2013 financial year.
NEC was initially thought to be after CSG’s print services unit. Following the technology solutions sale, CSG announced its print unit would be restructured to streamline the business across A/NZ. The restructure involved cutting $13 million costs and 30 jobs from its 600-strong workforce.
CSG today reported it forked out $25.9 million in the last year to review all its assets.
“This is a really exciting time. It’s a real opportunity to restructure Print Services Australia and New Zealand to deliver annualised cost savings and return really significant value,” a CSG spokesperson told CRN at the time. “Our vision is to become a leading print provider.”
“We will end up with a stabilised print business that gives shareholders the opportunity to participate in a business that’s got the potential to significantly improve its profitability and deliver a revenue stream to support an attractive dividend yield.”
CSG’s new managing director Julie-Ann Kerin today said the print services restructure was designed to remove duplication, improve efficiency and cut costs.
“Our restructured print services business will enable us to better meet the needs of our customers and is well positioned for improved operating and financial performance in the future.”
CSG suffered a drop in revenue for the 2012 fiscal year, falling 9 percent to $202.8 million from $222 million in 2011.