CSF sees rental and maintenance income leap

CSF Group, a provider of data centre facilities and services in South East Asia, saw an improvement across all business segments in its full year results, with the jump in rental and maintenance revenue most noticeable.

Total group revenue in the year to March 31st rose from RM113.34m to RM207.96m year-on-year, boosting gross profits to RM78.6m (2011: RM39.5m) and profit before tax to RM55.0m (RM49.79m).

The gain in revenue was partially offset by a reduction in the gain seen on sale of property, plant and equipment from RM24.56m the previous year to just RM0.068m this time round.

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Rental and maintenance revenue revenues jumped 25.4% to RM82.4m from RM67.4m the previous year.

During the period the company completed of the construction of its CX5 data centre together with the fit-out of critical power infrastructure and associated cooling for Block A, which is currently fully tenanted.

The ongoing development and marketing activities for Blocks B and C of CX5 are on schedule with full occupancy expected by the end of financial year 2014.

The firm is in ongoing discussions to develop a data centre in Singapore, Johor, East Malaysia and China.

Dato' Ting Heng Peng, Chairman of CSF Group, said: "Management's core focus over the next two years is to increase the occupancy of Blocks B and C of CX5 while continuing to pursue new development projects to increase the group's data centre capacity in order to grow its recurring revenue streams."

Chief Executive Officer Adrian Yong added: "The development of CX5 is gathering pace with successful rental and fit-out of the remaining blocks now our key strategic goal. We have received strong levels of interest across our existing customer base and we firmly believe the facility will be occupied by the end of financial year 2014. Our business continues to be well placed for future growth."

Cash at the end of the year fell from RM80.5m to RM52.8m.

The share price rose 1.12% to 45p by 10:03.

NR