CSF Group plc
(“CSF” or “the Group”)
HALF-YEAR RESULTS
For a Six Months Ended 30 Sep 2012
CSF Group plc (AIM: CSFG), a heading provider of information centre comforts and services in South East Asia and the largest provider of information centre services in Malaysia, is gratified to announce a unaudited half-yearly formula for a 6 months finished 30 Sep 2012.
Financial highlights:
• Group income during RM63.9m (£12.9m*) (H1 2012: RM91.7m (£18.5m*))
· Data centre let income augmenting by 51.4% to RM51.0m (£10.3m*) (H1 2012: RM33.7m (£6.8m*)) especially due to a let of Block A of CX5 commencing Apr 2012
• Profit before taxation reduce during RM1.4m (£0.3m*) (H1 2012: RM30.1m (£6.1m*)) due to reduce pattern and expansion revenue and a Group’s share of detriment of a jointly tranquil entity
• EPS reduce during 0.12 sen (0.02p*) per share (H1 2012: 15.53 sen (3.13 p*) per share)
• Closing money position as at 30 Sep 2012 of RM89.7m (£18.1m*) (31 Mar 2012: RM52.8m (£10.6m)) with certain handling money upsurge of RM41.8m (£8.4m*) (H1 2012: disastrous handling money upsurge of RM3.3m (£0.7m*))
Operational highlights
•Our Malaysian information centres, CX1, CX2, CX3 and Block A of CX5 operated on a full occupancy basement around a financial period
• PT Cyber CSF has finished a fit-out works on a initial 2 levels of CXJ information centre in Jakarta, Indonesia and a series of business have commenced control in Jul 2012
• Commenced Block B fit-out works during CX5 information centre that is scheduled for execution by a finish of a stream financial year
• Advanced negotiations with regards to a expansion of CX Singapore
• Submitted revised offer to a patron for a expansion of CX6 on a warden agreement basis
• Ongoing discussions to rise high peculiarity information centres in Malaysia, Singapore, China, Thailand and Indonesia
* The pro forma balances in pounds Sterling are enclosed usually for convenience. The pro forma balances in pounds Sterling are stated, as a matter of arithmetical mathematics only, on a basement of all stream and before year balances being translated from Malaysian Ringgits into pounds Sterling during a rate prevalent on 30 Sep 2012 of RM4.9629 : £1.00. This interpretation should not be construed as definition that a Malaysian Ringgit amounts indeed represent, have been, or could be converted into a settled series of pounds Sterling.
Adrian Yong, CEO of CSF Group, commented
“With a determined lane record and marketplace care in South East Asia, we are now good positioned to offer a products and services over a normal geographic range. The direct for a information centres shown by impending customers, including companies shaped in a North America, continues to grow notwithstanding a widely reported severe tellurian mercantile environment.
We continue to rivet network use providers to raise a network connectivity of a comforts to safeguard that we sojourn as a heading provider of information centre comforts and services in a selected region.
Despite carrying temporally crude a expansion of CX6 and CX Singapore, we stays committed to these projects and trust that we are now in a improved position to make estimable swell on these and a series of other projects. Our business therefore stays good positioned for destiny growth.”
For serve information:
CSF Group
Adrian Yong, Chief Executive
+603 8318 1313
Cenkos Securities (Nominated Adviser Broker)
Ian Soanes or Bobbie Hilliam
+44 (0)20 7397 8900
Buchanan
Jeremy Garcia / Gabriella Clinkard
+44 (0)20 7466 5000
CHAIRMAN’S STATEMENT
The Group has been means to grasp a certain set of formula despite significantly reduce than a analogous duration carrying gifted proxy setbacks in a pattern and expansion business.
Our joining towards enhancing a peculiarity of a services and products has been good perceived by a business as demonstrated by attaining full occupancy of CX1, CX2, CX3 and Block A of CX5 around a financial period. The Group has commenced a fit-out works for Block B of CX5 that is scheduled for execution by a finish of a stream financial year.
We have done substantial swell with CXJ trickery in Jakarta, Indonesia with a execution of a fit-out work of a initial 2 levels of a information centre. A series of business have commenced control in Jul 2012. The Group continues to marketplace a trickery and expects to be means to secure some-more business by a finish of financial year 2013.
Growth strategy
CSF’s extended plan is to continue to concentration on achieving expansion and augmenting a tolerable revenues, while investing in a longer-term core resources of building additional capacity. The Group continues to rivet with carriers and ISPs to immigrate during a Computer Exchanges. Enhanced network connectivity options will definitely make a Computer Exchanges some-more compelling.
We continue to deposit in building a technical trust to serve settle a care purpose in a information centre attention including standards and best practices. Our technical crew bear internal, bureau and outmost training. The training includes acceptance by authorities such as The Uptime Institute (TUI) and EXIN (formerly famous as Examinations Institute). CSFG is active in constrained attention standards and best practices around a impasse with Outsourcing Malaysia, a newly shaped Data Centre Association of Malaysia and is a initial member of The Uptime Institute (TUI) Asia Chapter.
CSF is also intent in ongoing discussions with intensity business partners in Malaysia, Singapore, Indonesia, Thailand and Vietnam to rise information centres during viable cost levels and during locations that assent scalability in terms of space and power. We sojourn on aim to grasp a middle to long-term idea of handling and handling an companion and integrated heart of information centres strategically located opposite South East Asia.
Results
Revenue for a 6 months to 30 Sep 2012 decreased 30.3% to RM63.9m (£12.9m*) (H1 2012: RM91.7m (£18.5m*)) especially due to reduce grant from a pattern and fit out works compared with a expansion of CX5. The volume of income recognized in propinquity to CX5 amounted to RM1.3m (£0.3m*) (H1 2012: RM49.7m (£10.0m*)). Data centre let income augmenting by RM17.3m (£3.5m*) or 51.4% especially attributable to a let of Block A of CX5 income that commenced in Apr 2012.
The normal sum domain decreased to 25.5% (H1 2012: 42.2%) especially due to the disastrous grant from a let of Block A of CX5 ensuing from a comparatively aloft franchise let cost that covers a information centre space and infrastructure of Block A, a bureau building, as good as a building and common infrastructure of Blocks B and C. The altogether distinction grant from a let of CX5 is approaching to urge when Blocks B and C are rented out.
Profit from operations was RM1.2m (£0.2m*) (H1 2012: RM29.5m (£6.0m*)) and distinction before taxation was RM1.4m (£0.3m*) (H1 2012: RM30.0m (£6.1m*)) especially due to a reduce income and normal sum distinction domain as mentioned above. In addition, a distinction from operations enclosed a Group’s share of detriment of PT Cyber CSF amounting to RM2.7m (£0.5m*) (H1 2012 : Nil). The detriment incurred by PT Cyber CSF was in line with a management’s expectancy that a jointly tranquil entity would catch a detriment in a initial 2 years of operations before apropos essential by FY2015.
The net money generated from handling activities was RM41.8m (£8.4m*) (H1 2012: net money used of RM3.3m (£0.7m*)mainly attributable to a collection of a poignant volume of trade receivables including RM55.0m (£11.1m*) from Integrated DC Builders Sdn Bhd (“IDCB”) in tie with a expansion of Block A of CX5.). Consequently, a Group’s money position augmenting by RM36.9m (£7.4m*) from RM52.8m (£10.6m*) as during 31 Mar 2012 to RM89.7m (£18.1m*) as during 30 Sep 2012.
Data Centre Rental
The Group achieved full occupancy during CX1, CX2, CX3 and Block A of CX5 around a financial period. However, a normal sum distinction domain on information centre let was reduce compared to a analogous duration especially due to a comparatively aloft franchise let cost payable by CSF for Block A of CX5 that also covers a bureau building and a information centre building structures and ubiquitous infrastructure for Blocks B and C. We continue to design a altogether distinction grant of CX5 will urge when Blocks B and C are rented out.
The fit-out works during Block B of CX5 are approaching to be finished by a finish of a stream financial year and we are now negotiating with a series of impending business to franchise a space during Block B of CX5.
The Group’s joint-venture in Indonesia, PT Cyber CSF has finished a fit-out of a initial 2 levels of a CXJ information centre and a series of business have commenced control in Jul 2012. The Group continues to actively pursue a series of impending business in this high-growth marketplace and expects a joint-venture to minister to a Group’s profitability within a subsequent 2 to 3 years.
We are in modernized negotiations with regards to a expansion of CX Singapore and design to be means to embark expansion activities by a finish of this financial year. CX Singapore will supplement to a information centre ability of a Group and will serve connect a position as a marketplace personality in this region.
Maintenance
The Group’s upkeep income remained fast and we continue to pursue new upkeep contracts in sequence to raise a repeated income streams. Our upkeep multiplication has continued to record improvements in a inner pivotal opening indicators that embody measurements of potency in carrying out scheduled upkeep and also ad hoc requests for services.
Design and Fit-out of Data Centre Facilities
CSF continues to raise a marketplace position and a works carried out during CX5 and CXJ are a covenant of a Group’s repute as a heading and arguable solutions provider in a margin of information centre infrastructure services. The Group continues to pursue outmost opportunities opposite a segment operative closely with all business partners.
The Company had approaching expansion work starting on CX6 during a stream financial year. Following discussions with an existent customer, a Company has been asked to redesign a due expansion from 70,000 sq ft. to 120,000 sq. ft, encompassing 4 blocks of 30,000 sq ft. The outcome of this preference is an boost in a sum approaching expansion and upkeep income approaching from CX6 though a check in a approval of this income to a subsequent financial year and beyond. The revised offer is being reviewed by a customer.
Recent initiatives
Marketing to US Based companies
We continue to work on proposals to offer information centre space and compared services to US shaped companies, quite a Cloud Services providers to take advantage of a reduce handling costs in South East Asia. We trust that this beginning will yield a constrained inducement for US shaped companies to immigrate or to raise their information centre comforts and services to a partial of a world.
Enhancement of network connectivity infrastructure
The Group continues to negotiate with third celebration network infrastructure providers to safeguard that CSF is means to offer high-speed connectivity during really rival rates to raise a use offerings of a Group.
Identifying investment targets
As a plan to raise a technical capabilities and to concede a apparatus bottom to cope with a flourishing direct for a information centre space and compared products and services, we will continue to brand merger or investment opportunities. Our comment of merger or investment targets will be shaped on factors including a encouragement of repeated income streams, a broadening and encouragement of technical resources, and reasonable earnings on investment.
Staff
The success of CSF and a benefaction status are a formula of a tough work of a people. It is their knowledge, skill, professionalism and joining that drives this association brazen and we would like to appreciate them all for their poignant grant around a period. CSF aspires to be a employer of choice that encourages constructive communication between a government and a other employees and will essay to favour a operative sourroundings shaped on a beliefs of meritocracy, fairness, firmness and responsibility.
The Group continues to hunt and partisan new talents who can minister definitely and to extract in bringing a Group to larger heights.
Dividends
The Board does not introduce any remuneration of dividends in honour of a 6 months duration finished 30 Sep 2012 (H1 2012: Nil). The Group expects to continue to compensate dividends in honour of a full financial year.
Outlook and stream trading
Our pivotal business concentration for a second half of a financial year finished 31 Mar 2013 is to safeguard that a fit-out works during Block B of CX5 sojourn on report and also to secure business for a control of Blocks B and C of CX5. In addition, a Group has continued to rise a clever tube of intensity business for expansion of new information centres and a change piece stays strong with net resources of RM212.0m (£42.7m*) and money of RM89.7m (£18.1m*) during 30 Sep 2012. The Board is assured that direct for a products and services will be sustained, driven by a repute and determined marketplace participation in Malaysia and South East Asia.
Trading has remained on lane with marketplace expectations given a finish of a halt duration within a Group’s businesses and a Board expects that distinction before taxation for a full financial year will be in line with stream marketplace expectations. The income and distinction for a second half of a financial year are approaching to be significantly aloft than a initial half especially attributable to a fit-out works compared with Block B of CX5 that are in being undertaken in a second half of a financial year.
Resignation of director
Mr Wong Chow Ming tendered his abdication to a Board of Directors and will stop to be a executive of CSF with outcome from 1 Dec 2012, due to health reasons. Mr Wong will continue to be concerned in business expansion activities as an worker of a Group and his benefaction functions as a member of a Board will be insincere by Mr Adrian Yong, a Chief Executive Officer.
The Directors would like to extend their appreciation and thankfulness to Mr Wong for his use and grant to a Board.
Dato’ Ting Heng Peng
Independent Non-Executive Chairman
CSF Group plc
* The pro forma balances in pounds Sterling are enclosed usually for convenience. The pro forma balances in pounds Sterling are stated, as a matter of arithmetical mathematics only, on a basement of all stream and before year balances being translated from Malaysian Ringgits into pounds Sterling during a rate prevalent on 30 Sep 2012 of RM4.9629 : £1.00. This interpretation should not be construed as definition that a Malaysian Ringgit amounts indeed represent, have been, or could be converted into a settled series of pounds Sterling.
Article source: http://www.4-traders.com/CSF-GROUP-PLC-6064424/news/CSF-Group-PLC-HALF-YEAR-RESULTS-15556174/
