Corporate Overview
AIM Rule 26
Shares Information
Corporate Governance
Financial Reports
Admission Document & Circulars
Current Constitutional Documents
Advisers and Registrars
Home > Investor Relations > Announcements

New Tenancy Agreement and Trading Update

(“CSF” or the “Group”)

New Tenancy Agreement and Trading Update

CSF Group plc (AIM: CSFG), a leading provider of data centre facilities and services in South East Asia and the largest provider of data centre services in Malaysia, today announces that it has entered into a tenancy agreement for Block A of its CX5 data centre. The Company also announces a trading update

Tenancy Agreement

The Company is pleased to announce that it has entered into a tenancy agreement, subject to the satisfaction of certain conditions, with Masterplan MyCenter Sdn Bhd ("MMC") for the rental of the entire Block A of the CX5 data centre measuring 67,000 sq ft for a period of three years at rates that are in line with market expectation

MMC, an existing tenant of the CX2 data centre, was established by the founder of the Masterplan Consulting Sdn Bhd ("MCSB") group which is a supplier of information and communications technology equipment and solutions including data centre equipment and services focusing on the security and defence sector. MCSB has undertaken projects for various ministries and agencies of the Malaysian government including the Ministry of Defence, the Ministry of Home Affairs, the Royal Malaysian Police and the Ministry of Education. MCSB was appointed by the Ministry of Defence to develop and manage the first defence and security technology park in South East Asia.

The lease rental cost payable by CSF for Block A covers the office building and the data centre building structures and general infrastructure for Blocks B and C. Due to the upfront associated costs of the office building and Blocks B and C, the contribution from CX5 is expected to be minimal for the financial periods up to March 2013. The Board continues to expect the overall profit contribution of CX5 to be significant once new tenants are secured for Blocks B and C.

Trading Update

The Board today confirms that Group revenue and profits are broadly in line with expectations*. The Company expects the business mix for gross profit to be approximately 30 per cent. rental and maintenance and 70 per cent. design and development. The Board remains confident that rental and maintenance revenue will continue to grow in absolute terms and as a proportion of Group profits in future financial periods.

The Group continues to pursue new data centre development opportunities and the directors remain confident of the longer term returns that will be generated from the Company's strategy.

* before any adjustments for exchange rates movements

Adrian Yong, CEO of CSF Group, commented:

“In spite of the challenging global business and economic environment, we believe that our business model continues to be attractive and that our growth strategy will in turn benefit shareholders. The Company is focused on securing new tenants for Blocks B and C of CX5 in order to benefit from the operational gearing within the Group and working on CX6 and beyond. The Group is financially sound, cash generative and dividend paying. We are continuously improving our business processes and look forward to the longer term with confidence."

For further 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

Jeremy Garcia / Gabriella Clinkard
+44 (0)20 7466 5000