22nd Jul 2016 08:16
LONDON (Alliance News) - Data centre facilities and services provider CSF Group PLC saw its shares jump Friday morning after it expressed cautious optimism for improved results in its new financial year.
Shares in CSF were up 95% at 1.22 pence Friday, the biggest gainer on the London Main Market.
On a pro-forma basis, translating the figures from Malaysian ringgit to sterling, the company's pretax loss was GBP5.9 million for the financial year to end-March, widened slightly from GBP5.7 million the year before, on revenue of GBP15.0 million, up from GBP14.6 million.
In ringgit terms, CSF reported a pretax loss of MYR33.0 million, widened slightly from MYR31.8 million the year before, as impairment charges and charges related to onerous leases offset a rise in revenue to MYR84.0 million from MYR81.8 million.
CSF completed negotiations with the freeholder of its CX1, CX2 and CX5 data centres to restructure its lease rental payments in December, and said it is now in the process of finalising its debt settlement agreement and supplemental lease agreement.
Its immediate focus is on filling capacity in the CX2 and CX5 data centres, CSF said, and it is also working to reduce the burn rate of its cash reserves.
Due to reporting a loss, it is not recommending payment of a dividend.
"The priority for the board and management is to conserve the group's cash reserves, secure customers for the data centre rental business, and strive to improve operational efficiency in order to reduce costs. The board is cautiously optimistic that the group's financial results will improve in the next financial year," the company said in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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