CSG Holdings. JSE: CSG

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Background of CSG

  • CSG Holdings is a demographically representative industrial contract services group founded after the strategic merger and integration of various businesses. Based in South Africa and listed on the Johannesburg Stock Exchange (JSE), the group provides outsourced personnel services, mining and industrial services and contract food and catering services to a diverse array of clients in the retail, mining, manufacturing, petro-chemical, transport, government, healthcare and education sectors. The group is broadly split into Workforce Management, Facility Management and Mining and Plant Support Services. Each division has a variety of brands which carry out their specialised tasks.

  • The group currently has a JSE market cap of over R600 million, but CSG share price has been on a steady decline on the live online stocks chart.

CSG Shares Growth Driver

  • CSG’s management teams all have long and successful track records within their various fields, and the group complements this with reliable systems and a well-trained staff complement which provides a solid platform for growth.

  • The group’s overall strategy is to buy into businesses which cover a full range of complementary services, to establish a one-stop, non-core outsourcing group with a footprint across South Africa. The strategy is based on the tendency of businesses to view non-core divisions as an overhead expense and outsourcing is often the best way to reduce costs and management burdens.

  • During the financial year ended March 2016, CSG Holdings recorded a slight increase in operating profit (up to R85 million) and a 14% headline earnings per share increase. Earnings were negatively impacted due to pressure on commodity prices, which resulted in business lost from mining and industrial clients, but this was offset by organic growth in sectors not affected by commodity prices. Proprietary company Ukweza Holdings had particularly strong performance, whilst additional earnings were also gained from new acquisitions in the security and cleaning industries. The company is aiming to buy more businesses in these two industries to further diversify its portfolio, whilst putting under performing assets up for sale.

CSG Group Investor Tip

  • Although shareholders have historically received good dividends and headline earnings per share, CSG Holdings share price have shown a marked decline from R 3 at the beginning of 2014 to R 1.45 by June 2016.

  • The company’s new major investments in the security and cleaning industries have been touted as a savvy move which will boost profits and CSG share price. The group anticipates that the security cluster will prove highly profitable when turnover reaches R200 million a year. The forecast is that businesses should grow at between 20% and 30% per year, and trade on high margins.

  • Meanwhile, the group will look to capitalise on improving conditions in the mining and industrial sectors, with a long-term view of growth. Investment analysts agree that CSG shares have underperformed on the stock market so far, but the newacquisitions may boost CSG share price and encourage investors to purchase the shares.

CSG Major Shareholders

PDT Investments, GTT Investments, PSG FutureWealth, Barkomax, Vuwa Sacaffolding, NRT Investment.

  • Sector

    Industrials

  • Industry

    Industrial Services

  • Sub industry

    Industrial Distribution & Retail

How to buy CSG Group Shares

  • CSG : How to buy CSG Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Crookes Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Crookes Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase CSG Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Crookes Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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