CSG forecasts profit growth despite natural disasters

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CSG forecasts profit growth despite natural disasters

ASX-listed integrator CSG expected its full year net profits after tax to grow despite the recent natural disasters in Queensland and New Zealand.

Expectation of full year net profit after tax was between $38 million and $42 million for the year ending June 2011, up from $31.5 million in the previous year.

“CSG has grown rapidly over the past several years both through organic and acquisitive growth," the company said in a statement. 

"The strategy has been to diversify both geographically from the Northern Territory and Queensland and to reduce reliance on a limited customer and partner base.

"These strategies have been achieved.

“While performance has been impacted by relatively short term factors the business is showing strong signs of improvement," it said. 

Second half earnings for the technology solutions business were expected to exceed that of the first half.

Further, CSG estimated the sales pipeline for multi-year contracts was between $350 million and $400 million.

CSG expected the Australian print business to report earnings growth relative to the first half which grew to $111.8 million from $31.3 million in the previous corresponding period. 

However, while positive overall, the rate of growth was reduced by the negative impact from Queensland, which is expected to be below the previous corresponding period.  

CSG New Zealand's print division expected to deliver flat earnings relative to the first half with earnings impacted by the Christchurch earthquake and currency.

“We believe that CSG now has a national platform and is now well positioned for strong organic growth from FY12," the company said. 

Operations in NSW and Queensland were to have positive contribution to earnings after a number of periods of investments in building these operations. 

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