CSG Holdings (CSG: JSE), a South Africa-based provider of outsourced personnel services, industrial and mining services, and contract catering and food services, reported revenue for the six months ending 31 March 2015 of ZAR 1.3 billion (USD 105 million), an increase of 21.4% compared with ZAR 1.1 billion (USD 86 million) a year ago. 

The company reports revenue in three primary segments; Workforce Management, which includes recruitment and staffing services; Facility Management, which includes contract catering, cleaning and food services; and Support Services to the mining, plant, and construction sectors.

Revenue during H1 2015 was broken down as follows:

The company’s strong revenue growth partly stemmed from the acquisition of financial services recruitment firm Conningham Lee, which has operations in London as well as in South Africa, in November 2014. The firm was acquired for an initial payment of ZAR 24 million (USD 2 million), with a possible future payment of ZAR 11 million (USD 0.9 million) based on the company’s post-acquisition 12-month performance. 

In addition to Conningham Lee; CSG Holdings also operates recruitment firm BDM which specialises in providing staff to blue-chip companies; M&S Projects, which provides staff to, among others, the chemical and petro-chemical, mining, and construction sectors; and Umdeni Maintenance Services, which provides blue and white-collar workers to the energy sector.

CSG Holdings also advised that growing demand for the company’s Facility Management services from the rest of the African continent, where margins are higher, added significantly to profit during the first half of the year.