LONDON (Alliance News) - Malaysian data centre services provider CSF Group PLC on Monday reported a swing to a pretax profit for its first half, as it agreed to restructure lease rental payments on three of its data centres.
For the half year to end-September CSF reported a pretax profit of MYR1.8 million, swung from a pretax loss of MYR6.4 million, primarily as a result of exceptional gains from the reversal of an impairment of tangible assets and a provision for onerous leases. This offset a fall in revenue to MYR34.1 million from MYR47.5 million.
At current exchange rates, this is equivalent to a swing to a pretax profit of GBP270,729 from a pretax loss of GBP968,854, on revenue of GBP5.2 million, down from GBP7.2 million.
Revenue fell mainly as a result of a tenancy contract not being renewed at its CX2 data centre.
CSF attributed its performance in the half year to two of its data centres not yet achieving the optimum level of occupancy. The company is focused on filling the remaining capacity of its data centres and said that, in the meantime, it will continue to ensure that there is "no significant cash outlay other than sums required to cover the committed lease rentals and other necessary operating overheads."
The company has agreed nine-year leases for its CX1, CX2 and CX4 data centres, starting from next year, with an option to extend by an additional 16 years. It will settle outstanding lease rental payable accrued up to the end of 2015 through monthly cash instalments.
CSF said that the completion of the restructuring of its lease rental payments will reduce the burden on its operating cash flow, and will allow it to focus on securing new tenancy contracts in order to further reduce the burn rate of its cash reserve.
Shares in CSF were untraded Monday morning at 3.75 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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