27th Jul 2018 09:49
LONDON (Alliance News) - CSF Group PLC on Friday said it has swung to a loss in its most recent financial year, in which it sold two of its three operating assets.
For the 12 months to March-end, data centre operator CSF posted a pretax loss from continuing operations of MYR1.9 million, or GBP356,996, compared with a pretax profit of MYR6.7 million, or GBP1.3 million a year prior, as revenue from continuing operations fell to MYR23.9 million from MYR26.4 million.
Including discontinued operations, CSF's revenue slipped to MYR55.9 million from MYR82.4 million.
The south-east Asia-focused firm sold off its CX2 and CX5 data centres during the period, meaning its only data centre left is CX1.
CSF said revenue on a monthly basis is now not enough to cover overheads, made worse by "intense" competition and pricing pressure. Further, it will have to spend "significant" cash on upgrading CX1's "ageing" equipment.
Going forward, the plan will be to increase revenue from CX1, with the disposals of the other two centres reducing its losses and cash burn.
Shares were 1.9% lower on Friday morning at 2.50 pence each.