South Africa-based CSG Holdings (CSG: JSE) reported revenue increased by 22.2% to ZAR 2.13 billion (USD 168.7 million) for the year ending 31 March 2018, when compared to the same period last year.

CSG Holdings is a provider of outsourced personnel services, industrial and mining services, and contract catering and food services.

The company said that acquisitions made last year drove the increase in revenue.

Last year, the group acquired 100% of Revert Risk Management Solutions, a security and risk management service, for ZAR 100 million (USD 7.9 million) in May last year. The acquisition added ZAR 161.68 million (USD 12.7 million) to group revenue and ZAR 8 million (USD 0.6 million) to group profit. CSG also acquired a 30% interest in 7Arrows Security, previously known as Security Operations Group, for an undisclosed amount last year.

CSG’s staffing solutions division reported an increase in revenue of 14% to ZAR 951.87 million (USD 75.2 million) compared to the same period last year. CSG stated that the increase is due to greater stability in the temporary employment industry as well as diversification towards other services.

The group’s facility management unit increased its revenue by 13% to ZAR 756.74 million (USD 59.7 million), compared to the same period last year.

CSG’s security and risk solutions unit saw revenue increase by 78% to ZAR 425.98 million (USD 33.6 million) when compared to the previous year.

"These improvements were achieved through both organic and acquisitive growth, as the additional earnings from the recent security and cleaning acquisitions were included for a full year in the results for the year under review," the group stated.

Looking ahead, the company said that the current business environment and trading conditions are expected to remain challenging with only a small number of new infrastructure developments expected in the near future.

“CSG's diversification strategy has been successful and the group is well positioned for future growth with a strong foundation of diverse services covering various industries,” CSG CEO Pieter Dry said. “We anticipate that overall organic growth is still possible from this solid base and current economic conditions provide opportunities for further lucrative earnings from accretive acquisitions at very attractive multiples. CSG expects the growth experienced during the 2018 financial year to continue in 2019.”

In trading yesterday CSG Holdings shares closed at ZAR 128.0 (USD 10.11), up 9.4% on the day. Based on its current share price the company has a market value of ZAR 659.39 million (USD 52.08 million).