Csf Group Share Discussion Threads

[cascudi] 07/8/2013 09:12

a bad year for the company but they managed to increase cash and that is good imo.
If I have understood correctly the bad year is due to customer not paying. correct?

with an exchange rate of 4.69 (RM/£) the net working captal per share is 13.2p so 1.3 times above current share price

probably current share price was already predicting this finance statement and 10p could be a starting point for increase imo

[j777j] 07/8/2013 07:44

Cash greater than market cap.Positive cash flow.They would have made a profit of £1 million if they didn't write off £8 million.


I think the low point for the business has been reached and it should start to recover...




A substantial portion of the cash raised at the Group's Initial Public Offering (GBP25m net) to develop CX5 remains in the Group's bank accounts which stands at RM61.9m (GBP13.2m*) at the year end. In addition, the Group has approximately RM77.8m (GBP16.6m*) 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.

The Group recorded total revenue of RM143.1m (GBP30.5m*), a decrease of RM64.9m (GBP13.8m*) or 31.2%. The decrease in total revenue was mainly attributable to the decrease in revenue from the design and development of data centre facilities due to a decrease in the works carried out on the CX5 project.

In spite of the net loss incurred during the year, the Group's net cash generated by operations after working capital movements and net finance income increased from RM9.3m (GBP2.0m*) in 2012 to RM24.3m (GBP5.2m*) in 2013 mainly due to the collections of trade and other receivables associated with the CX5 development. The Group has enhanced its procedures in relation to credit risk assessment and will continue to take steps to ensure that collections from customers are prompt.

[glasshalfull] 07/8/2013 07:33

Those results made for painful reading. Yet another Far Eastern domiciled company that has hit the buffers.

Cancellation of the dividend to preserve cash and the fact that they've made provision of £8m for the two doubtful debts now explains why the shareprice is bumping along at lows.

The company is simply non-investible IMHO with too many caveats. For instance, the likes of CX2 is now sitting at 57% occupancy & CXJ only 20%.

I wish holders good fortune.

Regards
GHF

[cascudi] 05/8/2013 16:23

I am not an economist but It seems that Malaysia gdp is increasing. I guess that this should be good for csf group future.

hxxp://www.tradingeconomics.com/malaysia/gdp-growth-annual

[somerset lad] 25/7/2013 16:41

I like the fact that Phil Cartmell has been given a bigger role. It suggests a genuine wish to turn this around for the benefit of the holders of the free float. (I feared when I saw the heading for the RNS that he'd been marginalised having pressed for the strategic review.)

[igoe104] 25/7/2013 13:04

Good news.

With the right kind of management, this stock could recover quickly.
This company is in a big growth sector it should be doing alot better.

[davidosh] 25/7/2013 10:36

BOARD CHANGES

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, today announces the following board changes.

Adrian Yong, currently Chief Executive Officer will step down with immediate effect due to personal health reasons.

In addition, Ting, Heng Peng ('Dato' Ting'), currently Non-Executive Chairman of CSF will temporarily move to Non-Executive Director. Phil Cartmell will assume the role of interim Chairman for a six month period.



During this time, Phil Cartmell will be responsible for overseeing the appointment of a new Chief Executive Officer and executive management structure whilst ensuring the Company's commercial and strategic development remains unaffected. Phil will be supported by a committee ("the committee") which has been formed to manage the day-to-day operations of the Company. The committee, which will include sales, operations and finance divisions, will be headed by Michael Leong, Director of Corporate development. Michael Leong will report directly to Phil Cartmell and the board of directors.



Full year results for the year ended 31 March 2013 and an update on the strategic review being undertaken by the Company will be announced in early August 2013.

[varies] 19/7/2013 10:39

Whilst waiting nervously for the figures as at 31 March 2013, delayed presumably on account of doubts over the 2 defaulting tenants in CX2 and CX5 (block A), I have been looking at the half-year figures.
Profits come (as I read the accounts) in the form of rentals on the completed data centres, some modest maintenance revenue and profits on the construction of new centres through a connected company IDCB. In the first half of 2012/13 the rentals were well up but the IDCB contribution fell to virtually nothing. This was because CX5(A) had been completed and was fully occupied and building work by IDCB had dried up thanks to the postponement of CX5(B), CX6 and CX Singapore.
Would someone kindly correct me if I am wrong ? I do find this company confusing.

Rentals in 2012/13 were running at cRM 100million p.a (say >£20m) and RM33m of this was payable by the 2 defaulters. So we might reasonably hope for rentals of RM67m but there is likely to be a loss on this front because of the large overheads at CX(A). The IDCB part of the business must surely be loss-making now.
Furthermore CSFG has advanced RM 78m (say £16m)to IDCB, equivalent to today's market cap., and there may be a write down required on this.
From the gloomy tone of my remarks, some unkind participants here may think that I am seeking to drive the share price even lower but this is not the case and I would be happy to increase my holding if my fears could be refuted.
Even so, it requires more courage than I have to buy before the results appear.

[igoe104] 05/7/2013 09:56

Worth a read.

[igoe104] 05/7/2013 09:41

So its looking like review is CSF changes data centre business model to adapt from building big data centres too building smaller data centres for customers needs.

[igoe104] 05/7/2013 09:29

Heres a good write up here on csf group.



His upcoming data centres in the Iskandar development hub in the southern Malaysian state of Johor, and in Thailand, will be built along these lines.

The Thai market however is a few years behind in accepting that it is more efficient to outsource the managing of a data centre.

"Bank chief information officers tend to think that because they have the resources, they want to own their own data centre," Yong says. In industry lingo, this is known as 'server hugging.'

Still, he is going ahead with his expansion there, aided by an eight-year tax-free incentive from the Thai Government. He is hoping to capture some anchor tenants with a pre-development sign-off of 30% data centre space committed to

[gspanner] 28/6/2013 13:40

It's the silence that is deafening for me; since recently they have received largish quantity of cash it doesn't seem likely to go bust, but return private seems more likely since the stock market has not returned anything like a sensible valuation.

[igoe104] 28/6/2013 12:48

YUP that makes it more frustrating, when you compare two year graphs.

i surprised telecity arent considering eating csf group up fot breakfast.

[itchycrack] 28/6/2013 12:28

I echo your sentiments igoe104, this should be flying. I also hold TCY and IOM and both are doing well. I'm quietly hopeful they can pull something out of the bag here to rescue things (IMHO).

[davidosh] 28/6/2013 12:17

The results should be out late next week or early in the week after if the timing last year is anything to go by. Hopefully the results of the strategic review will be out at the same time.

[igoe104] 28/6/2013 11:08

I think the management have alot too answer for, especially failing in a growing market. ?

[igoe104] 28/6/2013 11:05

This share is a complete mystery to me how its gone wrong this year. if you do your market research this is a red hot sector thats only going to get bigger.

So why the hell has this share price fallen over 75% this year ?



Keep thinking surely a bounce will happen but im not willing to add even at this level.

[davidosh] 30/5/2013 23:29

Who are the fund managers in this ?

I doubt directors will be allowed to buy shares as the company is now well beyond the year end and in a strategy review to determine the future of the business.

The next results should only be a month or so away.

[rimmy2000] 30/5/2013 21:01

igoe - any idea what salary the directors take?

[gspanner] 30/5/2013 19:05

Significant director purchase would speak volumes here.