CSF reports poor performance in first half

CSF Group, an AIM-listed provider of data centre facilities and services in South East Asia, incurred losses despite rising revenues in the first half because both of the company’s computer exchanges, CX2 and CX5, have not yet attained an optimum level of occupancy.

Fit-out works for a new tenancy contract are ongoing, but will only start to generate rental revenue in the second half of the 2017 financial year.

The group’s revenue was RM37.4m (£7m) for the six months ended 30 September 2016, up from £6.4m in the previous period.

Gross loss margin of 7.3%, down from gross loss margin of 66.2%.

Loss before tax of RM6.2m (£1.2m), down from a profit before tax of RM1.8m (£0.3m).

Loss per share of 4.46 sen (0.83p), down from earnings per share of 0.72 sen (0.14p) per share.

Net cash generated from operating activities of RM0.6m(£0.1m), up from cash outflow of RM6.6m (£1.2m) mainly due to improved collection of overdue receivables.

Cash and cash equivalents position as at 30 September 2016 was RM42.0m (£7.8m), down from RM43.6m (£8.1m) at 31 March 2016.

The board and management team remains focused on its key strategies, as outlined above, and on pursuing the pipeline of potential customers and business alliances.

The share price fell 14.47% to 0.810p at 1533 GMT on Thursday.