IT business company CSG is one of many that lost its way a few years ago and shareholders have had a tough time since
IT business company CSG is one of many that lost its way a few years ago and shareholders have had a tough time since. Regardless, the February reporting season surprised, triggering upgraded guidance for this financial year. CSG is transforming itself from a hardware seller into a more active provider of services/consultancy and the first 18 months of the five-year transformation plan have provided sufficient evidence that new management is showing the right moves to make this a success story in the years ahead. CSG recently won a few sizeable contracts (Bank of New Zealand and the NZ Police) further fueling analysts' confidence. Lastly, Management promises to pay out 9c each year to shareholders until FY17. Consensus estimate is the company will pay out 4.5c this year, an implied 4.7% yield. But if management keeps its promise, annual yield is about to double to beyond 9%.