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Announcements

AGM Statement

CSF GROUP PLC
(“CSF” or the “Group”)

AGM Statement

CSF Group plc is a leading provider of data centre facilities and services in South East Asia and the largest provider of data centre services in Malaysia.

At the Company’s AGM, which will be held today, Tuesday 21 September 2010, at 10.00 a.m. (Malaysian Time), the Chairman and CEO of CSF will provide the following update on the business:

During the first quarter of this financial year the CSF Group (“Group”) achieved unaudited revenues RM16.9m (£3.5m*) and a gross profit margin of 33%. The Company generated a profit before tax for the quarter of RM26.5m (£5.5m*) including the profit recognised from the sale (and leaseback) of the CX1 data centre of RM22.5m (£4.6m*). The cash balance of the Group was RM140.4m (£28.8m*) as at 30 June 2010, down from RM171.1m (£35.1m*) as at 31 March 2010 due to the utilisation of cash for the development of the CX5 data centre.

On 24 June 2010, the Company reported that the Group was appointed as the Lead Mechanical and Electrical Services Contractor for the CX5 development project at a contract sum of RM86m (£17.7m*) and that the Group was also appointed by the Malaysian Employees’ Provident Fund (“EPF”) to maintain the data centre of the EPF located in Selangor, Malaysia for the period from 1 June 2010 to 31 May 2013 at a contract sum of RM1.9m (£0.4m*). Since then the Group has been awarded a number of data centre fit-out contracts by various customers at contract sums ranging from RM0.04m to RM1.7m (£0.008m to £0.35m*).

Following on from the success in signing up a multinational telecommunications company as a tenant for CX-2, the Company is in further discussion with other parties to fill the remaining available space.

The Group, in collaboration with its business partners in Vietnam, has completed the development of a 3,500 sq ft data centre in Hanoi, Vietnam. The first “CSF” branded data centre was commissioned in July 2010 ahead of schedule and trial runs are being conducted by certain customers.

The Group has recently conducted a survey of the market in Singapore and noted that despite the relatively higher cost of development, the demand for data centre space is robust and the rental rates for data centre space would be commensurate with the higher development costs. Consequently, the Group is exploring the possibility of developing a data centre in Singapore as CSF believes that this strategy will result in much higher market penetration for the Group throughout the South East Asian region over the coming years.

Adrian Yong, CEO said: “CSF will continue to implement strategies to expand its business across the South East Asian region.

“In conjunction with our plans to develop a data centre in Singapore, CSF also intends to establish a marketing office in the country as we believe that Singapore will remain the nexus of data centre activity in the region. The marketing office is expected to capture and capitalise on inquiries for data centre space and data centre related services. Within our own country, Malaysia, CSF will continue to build upon its status and market position as the largest independent carrier neutral data centre provider. We have also managed to position ourselves at the forefront in the bidding for several sizeable contracts to develop and fit-out data centres for third parties.”

The last year has seen the achievement of a number of significant milestones by the Group and the formulation of several core business strategies including the plans to expand to Vietnam, Thailand and Indonesia. In the current financial year, the Group will continue to implement these strategies and will remain focused towards becoming a leader in the South East Asian market.

Dato’ Ting Heng Peng, Non-Executive Chairman said: “The Group’s achievements last year and in the first quarter of the current year are commendable. I would like to congratulate the management team and the other employees for their loyalty, professionalism and hard work. The Group remains vigilant in assessing market demand and conditions and is ever ready to respond appropriately. Amidst the challenging global economic environment, the Group has thrived in its field and the management continues to remain dedicated in the implementation of strategies to achieve the Group’s vision of becoming the region’s leading and trusted solutions provider in all aspects of data centre infrastructure services.”

* The translation of the financial figures into pro forma amounts in pounds Sterling is indicative and is included solely for convenience. Figures have been translated from Malaysian Ringgits into pounds Sterling at the rate prevailing on 17 September 2010 of RM4.87 : £1.00.  This translation should not be construed as meaning that the Malaysian Ringgit amounts actually represent, or have been or could be converted into the stated number of pounds Sterling.

 

For further information:

CSF Group
+603 8318 1313
Adrian Yong, Chief Executive

Leander (Financial PR)
+44 (0)7795 0168 157
Christian Taylor-Wilkinson

Cenkos Securities plc (Nominated Adviser and Broker)
+44 (0)20 7397 8900
Ian Soanes or Elizabeth Bowman