Half Year Results

For Immediate Release 29 November 2012

CSF Group plc

("CSF" or "the Group")

HALF-YEAR RESULTS

For the Six Months Ended 30 September 2012

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, is pleased to announce its unaudited half-yearly results for the six months ended 30 September 2012.

Financial highlights:

• Group revenue at RM63.9m (£12.9m*) (H1 2012: RM91.7m (£18.5m*))

·; Data centre rental revenue increased by 51.4% to RM51.0m (£10.3m*) (H1 2012: RM33.7m (£6.8m*)) mainly due to the rental of Block A of CX5 commencing April 2012

• Profit before tax lower at RM1.4m (£0.3m*) (H1 2012: RM30.1m (£6.1m*)) due to lower design and development revenue and the Group's share of loss of the jointly controlled entity

• EPS lower at 0.12 sen (0.02p*) per share (H1 2012: 15.53 sen (3.13 p*) per share)

• Closing cash position as at 30 September 2012 of RM89.7m (£18.1m*) (31 March 2012: RM52.8m (£10.6m)) with positive operating cash flow of RM41.8m (£8.4m*) (H1 2012: negative operating cash flow of RM3.3m (£0.7m*))

Operational highlights

• Our Malaysian data centres, CX1, CX2, CX3 and Block A of CX5 operated on a full occupancy basis throughout the financial period

• PT Cyber CSF has completed the fit-out works on the first 2 levels of CXJ data centre in Jakarta, Indonesia and a number of customers have commenced tenancy in July 2012

• Commenced Block B fit-out works at CX5 data centre which is scheduled for completion by the end of the current financial year

• Advanced negotiations with regards to the development of CX Singapore

• Submitted revised proposal to a customer for the development of CX6 on a turnkey contract basis

• Ongoing discussions to develop high quality data centres in Malaysia, Singapore, China, Thailand and Indonesia

* The pro forma balances in pounds Sterling are included solely for convenience. The pro forma balances in pounds Sterling are stated, as a matter of arithmetical computation only, on the basis of all current and prior year balances being translated from Malaysian Ringgits into pounds Sterling at the rate prevailing on 30 September 2012 of RM4.9629 : £1.00. This translation should not be construed as meaning that the Malaysian Ringgit amounts actually represent, have been, or could be converted into the stated number of pounds Sterling.

Adrian Yong, CEO of CSF Group, commented

"With our established track record and market leadership in South East Asia, we are now well positioned to offer our products and services beyond our traditional geographic range. The demand for our data centres shown by prospective customers, including companies based in the North America, continues to grow despite the widely reported challenging global economic environment.

We continue to engage network service providers to enhance the network connectivity of our facilities to ensure that we remain as a leading provider of data centre facilities and services in our chosen region.

Despite having temporally halting the development of CX6 and CX Singapore, we remains committed to these projects and believe that we are now in a better position to make substantial progress on these and a number of other projects. Our business therefore remains well positioned for future growth."

For further information:

CHAIRMAN'S STATEMENT

The Group has been able to achieve a positive set of results albeit significantly lower than the comparative period having experienced temporary setbacks in its design and development business.

Our commitment towards enhancing the quality of its services and products has been well received by its customers as demonstrated by attaining full occupancy of CX1, CX2, CX3 and Block A of CX5 throughout the financial period. The Group has commenced the fit-out works for Block B of CX5 which is scheduled for completion by the end of the current financial year.

We have made considerable progress with CXJ facility in Jakarta, Indonesia with the completion of the fit-out work of the first 2 levels of the data centre. A number of customers have commenced tenancy in July 2012. The Group continues to market the facility and expects to be able to secure more customers by the end of financial year 2013.

Growth strategy

CSF's broad strategy is to continue to focus on achieving growth and increasing our sustainable revenues, whilst investing in the longer-term core assets of building additional capacity. The Group continues to engage with carriers and ISPs to relocate at our Computer Exchanges. Enhanced network connectivity options will certainly make our Computer Exchanges more compelling.

We continue to invest in building our technical knowledge to further establish our leadership role in the data centre industry including standards and best practices. Our technical personnel undergo internal, factory and external training. The training includes certification by authorities such as The Uptime Institute (TUI) and EXIN (formerly known as Examinations Institute). CSFG is active in promoting industry standards and best practices via our involvement with Outsourcing Malaysia, the newly formed Data Centre Association of Malaysia and is a founding member of The Uptime Institute (TUI) Asia Chapter.

CSF is also engaged in ongoing discussions with potential business partners in Malaysia, Singapore, Indonesia, Thailand and Vietnam to develop data centres at viable cost levels and at locations that permit scalability in terms of space and power. We remain on target to achieve our medium to long-term goal of managing and operating an interconnected and integrated hub of data centres strategically located across South East Asia.

Results

Revenue for the six months to 30 September 2012 decreased 30.3% to RM63.9m (£12.9m*) (H1 2012: RM91.7m (£18.5m*)) mainly due to lower contribution from the design and fit out works associated with the development of CX5. The amount of revenue recognised in relation to CX5 amounted to RM1.3m (£0.3m*) (H1 2012: RM49.7m (£10.0m*)). Data centre rental revenue increased by RM17.3m (£3.5m*) or 51.4% mainly attributable to the rental of Block A of CX5 revenue which commenced in April 2012.

The average gross margin decreased to 25.5% (H1 2012: 42.2%) mainly due to the negative contribution from the rental of Block A of CX5 resulting from the relatively higher lease rental cost which covers the data centre space and infrastructure of Block A, the office building, as well as the building and common infrastructure of Blocks B and C. The overall profit contribution from the rental of CX5 is expected to improve when Blocks B and C are rented out.

Profit from operations was RM1.2m (£0.2m*) (H1 2012: RM29.5m (£6.0m*)) and profit before taxation was RM1.4m (£0.3m*) (H1 2012: RM30.0m (£6.1m*)) mainly due to the lower revenue and average gross profit margin as mentioned above. In addition, the profit from operations included the Group's share of loss of PT Cyber CSF amounting to RM2.7m (£0.5m*) (H1 2012 : Nil). The loss incurred by PT Cyber CSF was in line with the management's expectation that the jointly controlled entity would incur a loss in the first 2 years of operations before becoming profitable by FY2015.

The net cash generated from operating activities was RM41.8m (£8.4m*) (H1 2012: net cash used of RM3.3m (£0.7m*) mainly attributable to the collection of a significant amount of trade receivables including RM55.0m (£11.1m*) from Integrated DC Builders Sdn Bhd ("IDCB") in connection with the development of Block A of CX5.). Consequently, the Group's cash position increased by RM36.9m (£7.4m*) from RM52.8m (£10.6m*) as at 31 March 2012 to RM89.7m (£18.1m*) as at 30 September 2012.

Data Centre Rental

The Group achieved full occupancy at CX1, CX2, CX3 and Block A of CX5 throughout the financial period. However, the average gross profit margin on data centre rental was lower compared to the comparative period mainly due to the relatively higher lease rental cost payable by CSF for Block A of CX5 which also covers the office building and the data centre building structures and general infrastructure for Blocks B and C. We continue to expect the overall profit contribution of CX5 will improve when Blocks B and C are rented out.

The fit-out works at Block B of CX5 are expected to be completed by the end of the current financial year and we are currently negotiating with a number of prospective customers to lease the space at Block B of CX5.

The Group's joint-venture in Indonesia, PT Cyber CSF has completed the fit-out of the first 2 levels of the CXJ data centre and a number of customers have commenced tenancy in July 2012. The Group continues to actively pursue a number of prospective customers in this high-growth market and expects the joint-venture to contribute to the Group's profitability within the next 2 to 3 years.

We are in advanced negotiations with regards to the development of CX Singapore and expect to be able to commence development activities by the end of this financial year. CX Singapore will add to the data centre capacity of the Group and will further consolidate our position as the market leader in this region.

Maintenance

The Group's maintenance revenue remained stable and we continue to pursue new maintenance contracts in order to enhance our recurring revenue streams. Our maintenance division has continued to record improvements in its internal key performance indicators which include measurements of efficiency in carrying out scheduled maintenance and also ad hoc requests for services.

Design and Fit-out of Data Centre Facilities

CSF continues to enhance its market position and the works carried out at CX5 and CXJ are a testament of the Group's reputation as a leading and reliable solutions provider in the field of data centre infrastructure services. The Group continues to pursue external opportunities across the region working closely with all business partners.

The Company had anticipated development work starting on CX6 during the current financial year. Following discussions with an existing customer, the Company has been asked to redesign the proposed development from 70,000 sq ft. to 120,000 sq. ft, encompassing four blocks of 30,000 sq ft. The effect of this decision is an increase in the total expected development and maintenance revenue expected from CX6 but a delay in the recognition of this revenue to the next financial year and beyond. The revised proposal is being reviewed by the customer.

Recent initiatives

Marketing to US Based companies

We continue to work on proposals to offer data centre space and related services to US based companies, particularly the Cloud Services providers to take advantage of the lower operating costs in South East Asia. We believe that this initiative will provide a compelling incentive for US based companies to relocate or to expand their data centre facilities and services to our part of the world.

Enhancement of network connectivity infrastructure

The Group continues to negotiate with third party network infrastructure providers to ensure that CSF is able to offer high-speed connectivity at very competitive rates to enhance the service offerings of the Group.

Identifying investment targets

As a strategy to enhance our technical capabilities and to allow our resource base to cope with the growing demand for our data centre space and related products and services, we will continue to identify acquisition or investment opportunities. Our assessment of acquisition or investment targets will be based on factors including the enhancement of recurring revenue streams, the broadening and enhancement of technical resources, and reasonable returns on investment.

Staff

The success of CSF and its present stature are the results of the hard work of our people. It is their knowledge, skill, professionalism and commitment that drives this company forward and I would like to thank them all for their significant contribution throughout the period. CSF aspires to be the employer of choice that encourages constructive communication between the management and the other employees and will strive to cultivate a working environment based on the principles of meritocracy, fairness, integrity and responsibility.

The Group continues to search and recruit new talents who can contribute positively and to partake in bringing the Group to greater heights.

Dividends

The Board does not propose any payment of dividends in respect of the six months period ended 30 September 2012 (H1 2012: Nil). The Group expects to continue to pay dividends in respect of the full financial year.

Outlook and current trading

Our key business focus for the second half of the financial year ended 31 March 2013 is to ensure that the fit-out works at Block B of CX5 remain on schedule and also to secure customers for the tenancy of Blocks B and C of CX5. In addition, the Group has continued to develop a strong pipeline of potential customers for development of new data centres and our balance sheet remains robust with net assets of RM212.0m (£42.7m*) and cash of RM89.7m (£18.1m*) at 30 September 2012. The Board is confident that demand for our products and services will be sustained, driven by our reputation and established market presence in Malaysia and South East Asia.

Trading has remained on track with market expectations since the end of the interim period within the Group's businesses and the Board expects that profit before tax for the full financial year will be in line with current market expectations. The revenue and profit for the second half of the financial year are expected to be significantly higher than the first half mainly attributable to the fit-out works associated with Block B of CX5 which are in being undertaken in the second half of the financial year.

Resignation of director

Mr Wong Chow Ming tendered his resignation to the Board of Directors and will cease to be a director of CSF with effect from 1 December 2012, due to health reasons. Mr Wong will continue to be involved in business development activities as an employee of the Group and his present functions as a member of the Board will be assumed by Mr Adrian Yong, the Chief Executive Officer.

The Directors would like to extend their appreciation and gratitude to Mr Wong for his service and contribution to the Board.

Dato' Ting Heng Peng

Independent Non-Executive Chairman

CSF Group plc

* The pro forma balances in pounds Sterling are included solely for convenience. The pro forma balances in pounds Sterling are stated, as a matter of arithmetical computation only, on the basis of all current and prior year balances being translated from Malaysian Ringgits into pounds Sterling at the rate prevailing on 30 September 2012 of RM4.9629 : £1.00. This translation should not be construed as meaning that the Malaysian Ringgit amounts actually represent, have been, or could be converted into the stated number of pounds Sterling.

CHIEF FINANCIAL OFFICER'S REVIEW

Introduction

The Group recorded basic earnings per share ("EPS") of 0.12 sen (0.02 p*) (H1 2012: 15.53 sen (3.13 p*)).

Financial results

Revenue

Data centre rental revenue increased by 51.4% to RM51.0m (£10.3m*) from RM33.7m (£6.8m*) in H1 2012 mainly due to the rental of Block A of CX5 commencing April 2012.

Revenue from the design and fit-out of data centre facilities decreased to RM8.7m (£1.8m*) from RM53.8m (£10.8m*) mainly due to the lower revenues associated with the development of CX5. The total revenue derived from project management services and fit-out works carried out at CX5 during the financial period amounted to RM1.3m (£0.3m*) (H1 2012: RM49.7m (£10.0m*)).

Gross profit margin

The Group's gross profit (GP) margin of 25.5% is lower than the average GP margin of H1 2012 of 42.2% mainly due to the lower gross profit margin on data centre rental and design and fit-out of data centre facilities.

The lower gross profit margin on data centre rental at 22.4% (H1 2012: 31.1%) due to the lease rental expenses associated with Block A of CX5 were relatively higher as they also cover the office building and the data centre building structures and general infrastructure for Blocks B and C. We continue to expect the overall profit contribution of CX5 to improve when customers are secured for Blocks B and C, and this remains a key priority for the Group.

The gross profit margin on maintenance revenue was slightly higher at 57.3% (H1 2012: 51.6%)) mainly due to the improvement in efficiency in carrying out scheduled maintenance works.

The lower gross profit margin on design and fit-out of data centre facilities at 28.4% (H1 2012: 48.4%)) was mainly attributable to the lower amount of project management and consultancy revenue in relation to the development of CX5. The amount of project management and consultancy revenue recognised in the current financial period amounted to RM1.0m (£0.2m*) (H1 2012: RM17.0m (£3.4m)).

Profit from operations

Profit from operations for the financial period amounted to RM1.2m (£0.2m*) (H1 2012: RM29.5m (£6.0m*)). The lower profit from operations was mainly attributable to the lower revenues derived from project management services and fit-out works carried out at CX5 of RM1.3m (£0.3m*) (H1 2012: RM49.7m (£10.0m*)) and the Group's share of loss of the jointly controlled entity (i.e. PT Cyber CSF) of RM2.7m (£0.5m*) (H1 2012 : Nil).

Cash and working capital

The Group generated positive net operating cash flow of RM41.8m (£8.4m*) (H1 2012: negative net operating cash flow of RM3.3m (£0.7m*)) mainly attributable to the collection of a significant amount of trade receivables including RM55.0m (£11.1m*) from Integrated DC Builders Sdn Bhd ("IDCB") in connection with the development of Block A of CX5.

The Group generated positive net cash flow from investing activities of RM10.9m (£2.2m*) (H1 2012: negative net cash flow for investing activities of RM5.4m (£1.1m*)). The increase was mainly due to the repayment of advances from IDCB of RM30.0m (£6.1m*) partially off-set by the cash advances to PT Cyber CSF of RM10.4m (£2.1m*) to fund capital expenditure and working capital, and additional cash advances to IDCB of RM6.0m (£1.2m*) for the development of Block B of CX5.

Critical accounting judgement and key sources of estimation uncertainty

The areas of critical accounting judgement and key sources of estimation uncertainty as disclosed on pages 47 to 48 of the Group's Annual Report for the year ended 31 March 2012 remain valid for the six months ended 30 September 2012.

Going concern

The directors have prepared financial projections, including cash flows, for a period up to 31 March 2014. Based on these projections and taking into consideration the current financial position of the Group, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the consolidated half-yearly information for the 6 months ended 30 September 2012.

Lee King Loon

Chief Financial Officer

CSF Group plc

* The pro forma balances in pounds Sterling are included solely for convenience. The pro forma balances in pounds Sterling are stated, as a matter of arithmetical computation only, on the basis of all current and prior year balances being translated from Malaysian Ringgits into pounds Sterling at the rate prevailing on 30 September 2012 of RM4.9629 : £1.00. This translation should not be construed as meaning that the Malaysian Ringgit amounts actually represent, have been, or could be converted into the stated number of pounds Sterling.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the 6 months ended 30 September 2012

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 September 2012

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 September 2012

CONDENSED CONSOLIDATED CASH FLOW STATEMENTFor the 6 months ended 30 September 2012

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the 6 months ended 30 September 2012 and 30 September 2011

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the 6 months ended 30 September 2012 and 30 September 2011

Notes 1 to 19 form an integral part of the condensed consolidated interim financial results.

1. General information

The Company is incorporated in Jersey as a public par value company limited by shares under the laws of Jersey. The registered address of the Company is Ordnance House, 31 Pier Road, St Helier, Jersey.

The Company has its primary listing on AIM, a market operated by the London Stock Exchange.

These condensed consolidated interim financial results were approved for issue by the Board of Directors on 21 November 2012 and are unaudited.

The financial information contained in the interim report also does not constitute statutory accounts. The financial information for the year ended 31 March 2012 is based on the statutory accounts for the year ended 31 March 2012, which were approved by the Board of Directors on 3 July 2012 and delivered to the Jersey Registrar of Companies in August 2012. The auditor reported on those accounts: the report was unqualified, and did not draw attention to any matters by way of emphasis.

(i) Forward-looking statements

Certain statements in these condensed consolidated interim financial results are forward looking. Although the Group believes that the expectations reflected in these forward looking statements are reasonable, we can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements.

(ii) Basis of preparation

The annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed consolidated interim financial results have been prepared in accordance with the accounting policies the Group intends to use in preparing its next annual financial statements. The condensed consolidated interim financial results should be read in conjunction with the annual financial statements for the year ended 31 March 2012, which have been prepared in accordance with IFRSs as adopted by the European Union.

(iii) Going concern

The directors have prepared financial projections, including cash flows, for a period up to 31 March 2014. Based on these projections and taking into consideration the current financial position of the Group, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the consolidated half-yearly information for the 6 months ended 30 September 2012.

(iv) Proforma

The pro forma balances in pounds Sterling are included solely for convenience. The pro forma balances in pounds Sterling are stated, as a matter of arithmetical computation only, on the basis of all current and prior year balances being translated from Malaysian Ringgits into pounds Sterling at the rate prevailing on 30 September 2012 of RM4.9629 : £1.00 This translation should not be construed as meaning that the Malaysian Ringgit amounts actually represent, have been or could be converted into the stated number of pounds Sterling.

(v) Basis of accounting

The accounting policies adopted are consistent with those of the annual financial statements for the year ended 31 March 2012, as described in those financial statements.

Taxes on income in interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

2. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up to 31 March each year. Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive income from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the Group. All intra-group transactions, balances, income and expenses are eliminated on consolidation.

Under the purchase method of accounting, the cost of an acquisition is measured as the aggregate of the fair values of the assets acquired, liabilities incurred or assumed and equity instruments issued at the date of exchange. The excess of acquisition cost over the net fair value of the identifiable assets, liabilities and contingent liabilities represents goodwill, while the shortfall is immediately credited to the consolidated income statement.

Goodwill is reviewed annually for impairment or more frequently if events or changes in circumstances indicate that the carrying value may be impaired.

3. Revenue recognition and contract accounting

Revenue represents amounts receivable for work carried out in the rental of data centre space (including reimbursement for electricity consumed by customers), design and development of data centre facilities, the maintenance of data centres and imputed interest on loans to data centre developers.

Revenue from contract works is recognised in the consolidated statement of comprehensive income based on the stage of completion which is determined based on the contract costs incurred for work performed to date in proportion to the estimated total contract costs.

Revenue on design and development activity is recognised over the period of the activity and in accordance with the underlying contract. Revenue is measured by reference to the fair value of consideration received or receivable from customers. Cost overspends on design and development are recognised as they arise and cost under-spends recognised when it is known with reasonable certainty the final position of the relevant contract. Where design and development projects are in progress and where sales invoiced exceed the cost of work completed, the excess is shown as deferred income, within other financial assets. When it is probable that total fit-out costs will exceed contract revenue, the expected loss is recognised as an expense immediately.

Income from support and maintenance agreements and the rental of data centre space is recognised on a straight line basis over the period of the related activity. Data centre space is rented out under operating leases.

4. Share-based payments

Equity settled share based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. The fair value excludes the effect of non market-based vesting conditions. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group's estimate of equity instruments that will eventually vest. At the balance sheet date, the Group revises its estimate of the number of equity instruments expected to vest as a result of the effect of non market-based vesting conditions.

5. Advances to a third party for a development project

During this period the Group advanced cash loans of RM6.0m to Integrated DC Builders Sdn Bhd ("IDCB"), the developer of the CX5 data centre. Such loans are either interest free or the effective interest rate is below a fair market rate. The notional interest income on the loan computed based on the difference between the effective rate and a fair market rate is included as a part of the contract revenue receivable by the Group relating to the Group's services in connection with the development of CX5.

6. Segment reporting

The management regularly reviews segment information based on the key products and services provided to its customers; rental of data centre space, maintenance (including) support of data centres, and the design and development of data centre facilities.

6. Segment reporting (continued)

7. Share of loss after tax - Jointly controlled entity

This represents the share of result of our investment in PT Cyber CSF, which is incorporated in Jakarta, Indonesia. The Group owns 49% of the equity interest in the entity.

Investments in jointly controlled entities are accounted for in the consolidated financial statements using the equity method of accounting.

8. Share-based payment

The Company has a share option plan for all employees of the Group and also for the Non-executive Directors. Options are exercisable at a price equal to the average quoted market price of the Company's shares on the date of grant. The vesting period is three years. If the options remain unexercised after a period of ten years from the date of grant the options expire. Options are forfeited if the employee leaves the Group before the options vest. The Group adopted the Black Scholes model in determining the fair value of share options. The key inputs considered in computing the fair value include the share price volatility of the Company and its peers, staff turnover rate of the Group and the vesting period of the Share Option Plan.

As of 30 September 2012, options were granted to the employees and directors of the Group that give them the entitlement to subscribe for a total of 7,000,000 shares (30 September 2011 : 7,700,000 shares) in the Company. The charge to the income statement for the current financial period amounts to RM624,000 (30 September 2011 : RM625,000).

9. Earnings per share

The calculation for earnings per share, based on the weighted average number of shares, is shown in the table below:

The number of ordinary shares for diluted earnings per share at 30 September 2012 is the weighted average number of ordinary shares of CSF Group plc that would have been in issue had all the share options which were below the current market share price been exercised.

10. Other receivable (non-current)

11. Short term investment

On 2 September 2011, the Group converted a portion of the advances to Integrated DC Builders Sdn. Bhd. ("IDCB") amounting to RM30,000,000 to 100,000 Redeemable Preference Shares ("RPS") in IDCB issued at a price of RM300 per share. The RPS carry a coupon rate of 6.5% per annum.

On 4 September 2012, the Group redeemed all the issued Redeemable Preference Shares ("RPS") in IDCB for RM30,000,000 in cash.

12. Note to the cash flow statement

13. Cash and cash equivalents

14. Dividend

The Board does not propose any payment of dividends in respect of the six months period to 30 September 2012 (H1 2012: Nil).

15. Commitment

The Group committed to provide a loan of up to RM80,000,000 to IDCB for development of the CX5 data centre. Up to 30 Sept 2012, the Group has provided a total loan of RM77,969,000 to IDCB, out of which RM30,033,000 has been repaid to the Group.

16. Operating Lease Arrangements

As at 30 September 2012, the Group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

17. Contingencies 

The Group holds a number of guarantees with various banks in respect of banking facilities as follows:

18. Related party transactions

Key management compensation amounted to RM2,107,000 for the six months to 30 September 2012 (30 September 2011 : RM1,726,000).

Balances and transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.

During the 6 months period ended 30 September 2012, Group subsidiaries entered into the following transactions with related parties which are not members of the Group:

(i) These are related parties as the Directors of the Group control jointly or have significant influence over these entities.

19. Acquisition of shares in subsidiary

On 1 April 2012 the Group has completed the acquisition of 100% of the equity interest of Third Wave Infrasys Sdn Bhd ("TWSB") for RM5.0m, payable over the next 3 financial years. The Group has paid RM500,000 being the initial payment according to the acquisition contract.

Details of the assets and liabilities and net inflow arising from the acquisition of the subsidiary were as follows:

Management have not yet finalised the fair value assessment of the assets and liabilities acquired within this business combination. The provisional allocation reflected above is subject to change on completion of the fair value assessment.

The cost of investment in subsidiary recognised as at the acquisition date is RM4,322,207. The amount is payable as follows:

INDEPENDENT REVIEW REPORT TO CSF GROUP PLC

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2012 which comprises the condensed consolidated statement of comprehensive income, the condensed consolidated statement of financial position, the condensed consolidated cash flow statement, the condensed consolidated statement of changes in equity and the related notes 1 to 19. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the AIM Rules of the London Stock Exchange.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report have been prepared in accordance with the accounting policies the group intends to use in preparing its next annual financial statements.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2012 is not prepared, in all material respects, in accordance with the AIM Rules of the London Stock Exchange.

Deloitte LLP

Chartered Accountants

Gatwick, UK

21 November 2012