27th Nov 2018 12:14
LONDON (Alliance News) - CSF Group PLC said Tuesday that it swung to a loss in the first half of its financial year as its monthly revenue continues to be lower than its running costs.
For the six months to September 30, the company, which provides data centre facilities in South East Asia, reported a pretax loss of MYR1.2 million, equivalent to GBP214,000, compared to a pretax profit of GBP372,000 a year ago.
Revenue dropped 18% year-on-year to GBP1.8 million from GBP2.2 million.
"The group's monthly revenue is still insufficient to cover its monthly operating overheads, and this has been exacerbated by intense competition and pricing pressure experienced by the maintenance and the design and development segments of the group's business," the company said.
CSF said it failed to appoint a replacement for its nominated adviser, Allenby Capital Ltd, which served its resignation notice with effect from 2019 earlier in November.
Under AIM rules, if CSF does not appoint a replacement by December 31, its shares will be suspended from trading. One month after the suspension, if the company does not appoint a new adviser, its shares will be cancelled from trading.
The company said: "The board of CSF has been unable to make further progress on this matter since November 12 and, as a consequence, it now believes that it will not be possible for the company to appoint a replacement nominated adviser before December 31."
CSF shares were untraded on Tuesday, last closing at 1.90 pence each.