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South Africa - CSG Holdings report decrease in revenue and profit

25 November 2015

South Africa - CSG Holdings report decrease in revenue and profit

CSG Holdings, a South Africa-based provider of outsourced personnel services, industrial and mining services, and contracting and catering and food services, reported a decrease in revenue and operating profit for the six months ending 30 September 2015 of ZAR 583 million (USD 41 million) and a decrease of 8.48% compared with ZAR 637 million (USD 45 million) a year ago.

  H2 2015 H2 2014 Change
Revenue ZAR 583 million ZAR 637 million -8.48%
USD 41 million USD 45 million
Gross Profit ZAR 111 million ZAR 119 million -13.60%
USD 7.9 million USD 8.5 million
Operating Profit ZAR 47 million ZAR 58 million -6.72%
USD 3.4 million USD 4.1 million

The company reports revenue in three primary segment: 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 H2 2015 was broken down as follows: 

  H2 2015 H2 2014 Change  
Workforce Management ZAR 311 million ZAR 364 million -14.56%  
USD 22 million USD 26 million  
Facility Management ZAR 208 million ZAR 226 million -7.96%  
USD 15 million USD 16 million  
Support Services ZAR 64 million ZAR 46 million -66.67%  
USD 5 million USD 3 million  

The company’s earnings were negatively impacted by the changes in legislation on temporary employment and pressure on commodity prices which resulted in cost cutting measures from clients during the period under review. 

In addition to Conningham Lee; CSG Holdings also operates recruitment firm BMD 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.