Highlights:CSG reported NPAT of $12.2m (UBSe $12.3m), up 11%...

Highlights:

CSG reported NPAT of $12.2m (UBSe $12.3m), up 11% yoy. 1h10 DPS was 2.5cps (UBSe 2.5cps), in line with our expectations reflecting reduced debt and improved cashflow.


The result does not reflect the recent $104m acquisition of Konica Minolta (KMBS) and Leasing Solutions (LSL), given the purchase was settled in February. As such we expect an EBITDA skew of 42%/68% in 1h/2h.


The outlook remains favourable, with management disclosing $1.2bn of potential contract opportunities.

NPAT of $12.2m was up 11% yoy and inline with our expectations. Key highlights include; 1) growth in Print Services, reflecting churn to colour and operational improvements; 2) growth from the Ultranet contract, which was partially offset by reduced profitability across development; and 3) improved cash flow conversion.

12 Month price target of $2.45.