CSF GROUP PLC
(“CSF” or the “Company”)
CSF, one of the leading providers of data centre facilities and services in South East Asia and the largest provider of data centre services in Malaysia is pleased to announce the following trading update.
The Board is pleased to confirm that the business and financial performance of the Group is currently trading in line with current market expectations. New business momentum remains strong and management continues to make significant progress on the delivery of the Group's stated growth strategy.
Data centre rental
CSF's joint-venture company in Jakarta, Indonesia is pursuing a number of potential new customers for the rental of data centre space at CX Jakarta ("CXJ"). The Group has commenced fit-out works at CX Jakarta and two levels (out of eight levels) are expected to be ready for service by December 2011. Management are encouraged by the pipeline of potential customers for CXJ and continue remain upbeat on the growth potential of the data centre market in Indonesia.
CSF is also in the process of finalising the terms of tenancy for Block A of the CX5 data centre and is now focusing on pre-marketing activities for Blocks B and C of CX5. The Group expects to be on target to complete the construction and fit-out of Block A of CX5 in late calendar year 2011.
Management continues to pursue data centre development opportunities within Malaysia whilst pursuing data centre development opportunities in Singapore, Thailand and Taiwan.
CSF are pleased to announce a collaboration with Pacific Link Telecom (Asia) Limited ("PLTA") and Jiangsu Communications Services Co. Ltd. ("JCS") which will be mutually beneficial to all parties concerned and will accelerate the demand for the Group's data centres and related products and services across the region.
As a strategy to increase the Group's core revenue streams, the Group has entered into an agreement with PLTA and JCS to leverage on the business, expertise, network, products and/or services and resources.
PLTA is engaged in the business of providing infrastructure and services for hosting and co-location of computer servers and network equipment and is an existing customer of the Group whilst JCS is a subsidiary of China Communications Services Corporation Limited ("CCS"), a company listed on the Hong Kong Stock Exchange whose principal activities include the provision of telecommunications infrastructure services, business process outsourcing services, and applications, content and other services. The shareholders of CCS include China Telecom, China Mobile and China Unicom.
In line with the Teaming Agreement, CSF, PLTA and JCS will co-promote, market and utilise each other's products, services, data centres and other facilities for each other's existing and future customers. PLTA's strategy is to attract international telecommunications service providers to set up their internet points of presence in common data centres managed by PLTA on a co-location basis whilst JCS will supply the equipment and provide installation and maintenance services. CSF's role is to provide high quality purpose-built data centres that will enable PLTA and JCS to realise their respective aspirations and growth strategies.
PLTA and CSF also expect to be able to leverage on the strength and credibility of the ultimate shareholders of JCS to secure large telecommunications and internet service providers for the data centres developed by CSF.
We believe that our collaboration with PLTA and JCS will be mutually beneficial to all parties concerned and will accelerate the demand for the Group's data centres and related products and services across the region.
Dato' Ting Heng Peng, Non-Executive Chairman said:
"As a management team we remain pleased with both our strategic progress and financial performance last year and in the first quarter of the current year. I am pleased to be able to report that performance remains in line with expectations.
I would like to congratulate the management team and the other employees for their dedication and hard work in implementing the Group's strategies. CSF is fully focused on its strategy to expand across the South East Asia region and remains encouraged by the growing demand for its data centres, and related products and 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 22 September 2011 of RM4.89 : £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:
+603 8318 1313
Adrian Yong, Chief Executive
Buchanan (Financial PR)
+44 (0) 20 7466 5000
Jeremy Garcia / Gabriella Clinkard
Cenkos Securities (Nominated Adviser and Broker)
+44 (0) 20 7397 8900
Ian Soanes or Elizabeth Bowman