Csf Group Share Discussion Threads

[serge gnabry] 17/10/2013 13:18

looks very cheap compared to other data center companies added some more.
patience needed but value will out in the end imo.

[j777j] 17/10/2013 12:50

Basically you are buying the business for significantly below cash and the actual underlying business is thrown in for free.

Even if Cenkos are only half right,that is still 30p a share.


A sleeping beauty?

[euclid5] 16/10/2013 11:43

Wonder what the current DC Assets & Rental stream is worth now 1 year later?

We believe the DC assets and rental stream is worth 60p+ a share in the context of global sector M&A.

[euclid5] 16/10/2013 11:30

Taken from annual report 2013 on pg 5 & 10 - tells me they will have approx £29m by Aug 2014 - current NAV £21m / 13p per share

at the year end. In addition, the Group has approximately RM77.8m (£16.6m*) tied up as working capital for the development of CX5 which will be collected over the next two financial years in line with the completion of the sale Blocks B and C in the last quarter of financial year 2014 and the first half of financial 2015, respectively. The completion and sale of Blocks B and C are contracted between the developer of CX5 (the seller of the facility) and the sovereign fund (the buyer of the facility) and are not dependent on the securing of tenants by CSF.

Based on the Group's unrestricted cash and bank balances at the financial year end of RM61.9m (£13.2m*) and restricted cash of RM13.1m (£2.8m*), net current assets balance of RM99.0m (£21.1m*) and financial projections, including cash flows, for a period up to 30 September 2014,

[euclid5] 16/10/2013 11:16

Thank you for the Cenkos report - picked below report up from iii - makes good reading

hxxp://www.technosociety.com/?p=1464

[j777j] 11/10/2013 12:20

Dug up a report from Cenkos the house broker last year.Makes for an interesting read.They have world class facilities and the recurring income seems to be higher than forecast.





Re the cx6 development.Last we heard the customer wanted to almost double the size of the project to 120,000 sq ft. We have heard nothing since.
Are we likely to get an announcement out of the blue on this?

[w1ndjammer] 19/9/2013 13:46

SteMis

all of the old news you have described above is the reason we can buy at 9p
we have been given a great opportunity, otherwise you would be paying north of 90p great potential obviously not without some risk.

WJ.

[j777j] 19/9/2013 10:57

As previously stated,news of new customers will drive the share price.As will the appointment of a new ceo.Or the anticipation thereof.

[stemis] 19/9/2013 10:46

Recurring revenue won't be growing at 35% if they don't fill B and C of CX5 or replace tenants in CX2 and Block A of CX5. Revenue in 2012/13 includes £7.1m which was then provided as a bad debt? Without replacing the two tenants, revenue in 2013/14 will therefore by £7.1m lower than 2012/13.

I agree cash is good but once they draw down the £16m their lease costs will increase as they will from increasing network connectivity in CX5.

At the moment the company is heading towards a sizeable and increasing loss.

News on new tenants is desperately needed to move the share price upwards.

[j777j] 19/9/2013 09:54

It is just a matter of time before they are replaced.We live in a data hungry world.

The appointment of a new Ceo will be a further boost.


"The Board and the management aim to achieve controlled and sustainable growth in revenue, EBITDA, earnings per share and operating cash flows. A key part of this will be the generation of greater levels of recurring revenue through a network of resellers and business partnerships which in turn will provide the Group with greater earnings visibility."

Rental and maintenance revenue increased 35.3% at RM111.5m (GBP23.7m*) (FY2012: RM82.4m (GBP17.5m*))

Outlook

Within 2 years, the Group has more than doubled its data centre capacity from 205,000 sq ft to 526,000 sq ft and with a significant amount of cash associated with the development of CX5 expected to flow into the Group within the next 2 years

The Group's immediate focus is to fill the CX5 data centre and to address the non-renewal of certain tenancy contracts at our CX2 data centre by securing replacement contracts with suitable and credible customers.



Meanwhile, the management continues to pursue the Group's pipeline of design and fit-out customers in order to generate adequate cash flows to supplement the temporary deficit in operating cash flows of the data centre rental segment. The Board will continue to ensure that new developments are undertaken based on thorough commercial assessment and with a high degree of financial prudence



£13.2 million cash and a further £16.6 million cash due within 18 months

£29.8 million v mkt cap of £14 million.

A recurring revenue business growing at over 35% yoy.


I still think this has a substantial chance of being taken over.


The company IPO several years back was at 55p, when their turnover was just £13 million.

[stemis] 19/9/2013 09:51

It is surprising, in what should be a strong market sector, that CSFG seems to have such difficulty attracting viable customers at a price that will recover their costs:-



This disappointing performance is mainly attributable to bad debt provisions of RM37.6m (£8.0m*) recognised in the financial statements during the current year. These provisions were mainly attributed to two key tenants in Block A of CX5 and CX2. The aforementioned tenants have approached the Group to settle the amounts owed which were payable as at 31 March 2013 over an extended period of time. In addition, a final settlement will most likely include a negotiated break clause, by way of a temporary suspension of the contract in the case of the tenant for Block A of CX5 and in the case of the tenant for CX2, a non-renewal of the contract. These discussions continue to be ongoing.

Unfortunately, several customers of CX2 experienced difficulties in their businesses and decided to downsize their data centre operations resulting in a decline in the occupancy rate of CX2 to approximately 57% presently.

The cost of network connectivity coupled with market pressures on pricing will inevitably reduce the profit margins on CX5

Until the company replaces the tenant in CX2 and Block A in CX5 and lets Blocks B and C of CX5, it's hard to see how it can make any real profit. It will be interesting to see if there's any update at the AGM.

[knowing] 18/9/2013 16:26

Thanks for confirming W1. Could be some shorts to close.

[w1ndjammer] 18/9/2013 16:25

Knowing

I went long on these with IG this morning, and shortly after those 200k AT trades showed up so I think they are laying the bets off, especially now the share price is trending north.

WJ.

[knowing] 18/9/2013 15:58

CSFG can be traded on IG. Wonder if they actually hedge the trades in the market.

[j777j] 18/9/2013 15:45

Still plenty of hiring by the co...



hxxp://job-search.jobstreet.com.my/malaysia/company/csf-group-plc-jobs/


Company Overview

CSF Group is a leading data centre in South East Asia and the biggest in Malaysia. The Group is focused on the provision of complete Data Centre Infrastructure Design, Development, Management, Operations and Maintenance Services. We have already begun to expand our business to Vietnam, Singapore and Indonesia, besides currently operating three independent data centers in Cyberjaya.


Why Join Us?


We hold on to a strong corporate culture of honesty, dedication and loyalty to our Clients, Employees and Shareholders.
We are committed to human resource training and development.




Of course the other major catalyst I forgot to mention,would be the announcement that they had recruited a new ceo.

[w1ndjammer] 18/9/2013 15:15

talked myself into another top up , the more research I do the more I like this one.

WJ.

[serge gnabry] 18/9/2013 14:47

picked some more up today.

[cottoner] 18/9/2013 14:41

Steady buying over the past 2 days.

[w1ndjammer] 17/9/2013 09:53

got my foot in the door here this morning, looks a good bet to me still doing research before full commitment.

WJ.

[j777j] 17/9/2013 09:35

There are some very useful interviews by the former ceo and others on Youtube.
The more I delve into the company,the more stock I want to buy.

I can see 100% upside quite easily attainable.The catalyst will be further contract for rentals and fit out news.

The former Ceo's near 30% stake seems like a real possibility for bidder to come in.


£13.2 million cash and a further £16.6 million cash due in within 18 months.


Any sort of settlement on the £8 million written off to bad debts would be an added bonus.

Meanwhile the underlying business with recurring revenues is growing at 35%.

The business is generating free cash flow.

[serge gnabry] 17/9/2013 09:12

doesnt take much buying to get this moving.
AGM should be interesting as we should hear re CX5 plans going forward.

[johnv] 13/9/2013 13:11

I just hope other customers don't try using the same trick. i.e decide to defer payment.

[j777j] 13/9/2013 13:06

I think the co would have learned it's lesson.The temporary ceo has presumably erred on the side of caution and there is a chance some of that £7 million odd write off may be recoverable.


Should have further news on new customers and other progress.

[johnv] 13/9/2013 11:59

Hopefully there is no more bad debtors.