TIDMCSFG
RNS Number : 0645S
CSF Group PLC
03 July 2015
Embargoed until 7am 3 July 2015
CSF Group plc
("CSF" or "the Group")
FINAL RESULTS
CSF Group (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 full year
results for the year ended 31 March 2015.
Financial highlights:
-- Group revenue of RM81.8m (GBP15.0m*) (FY2014:
RM103.5m (GBP18.9m*))
-- Loss before tax of RM32.0m (GBP5.9m*) compared
to the loss before tax of RM129.8m** (GBP23.7m*)
in FY2014
-- EPS at a loss of 19.58 sen (loss 3.58p*) per
share (FY2014: loss 82.78 sen (loss 15.14p*)
per share)
-- Closing cash position as at 31 March 2015
of RM29.2m (GBP5.3m*) (FY2014: RM19.8m (GBP3.6m*))
Operational highlights:
-- Completed Block C fit-out works at CX5, the
newest computer exchange facility. The Group
now has 406,000 st ft of data centre space
and more than 20 MW of IT power capacity in
Malaysia
-- Received repayment of RM29.9m (GBP5.5m*) in
June 2015 on advances to the project owner
for the development of CX5
-- Secured a tenancy contract for approximately
45% of the capacity at CX5 Block B
-- Continuing to pursue a pipeline of potential
customers and marketing activities
-- Ongoing discussions with several potential
customers
-- Enhanced marketing efforts focusing on
potential customers and resellers
* The translation of the financial statements into pro forma
balances in pounds Sterling is 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 balances being
translated from Ringgit Malaysia into pounds Sterling at the rate
prevailing on 31 March 2015 of RM5.4673 : GBP1.00. This translation
should not be construed as meaning that the Ringgit Malaysia
amounts actually represent, or have been or could be translated
into the stated number of pounds Sterling.
** Includes a provision for onerous leases of RM62.5m
(GBP11.4m*) and a provision for doubtful debts on advances relating
to joint venture activities that have been ceased of RM20.9m
(GBP3.8m*). In the current financial period the latter did not
recur.
For further information, please contact:
CSF Group
Phil Cartmell, Chairman +603 8318 1313
Allenby Capital (Nominated Adviser
and Broker) +44 (0) 20 3328
Alex Price / Nick Naylor 5656
CHAIRMAN'S STATEMENT
Overview of the Year
The Group is pleased to report improvements in the financial
results compared to the previous year despite it being another
challenging year for CSF. The Group incurred a net loss of RM31.3m
(GBP5.7m*) for FY2015 as compared to a net loss of RM132.5m
(GBP24.2m*) in FY2014. The significantly higher net loss for FY2014
was mainly attributable to bad debt provisions, provision for
onerous leases and provision for impairment of plant and equipment
which did not recur in FY2015.
Although the net loss for FY2015 was significantly lower than
that of the previous financial year, the operating loss of the data
centre rental business, excluding bad debt provisions and provision
for onerous leases in FY2014, was higher at RM45.0m (GBP8.2m*)
compared to RM28.5m (GBP5.2m*) in the previous financial year. The
higher operating loss of the data centre rental business in the
reporting period was mainly attributable to the full year's lease
rental expense relating to CX5 Block B which commenced in February
2014, only showing its full year of costs in this financial
year.
The higher operating loss of the data centre rental business was
mitigated by the gain of RM17.0m (GBP3.1m*) on the disposal of the
entire 49% equity interest in the jointly-controlled entity, PT
Cyber CSF, in Indonesia undertaken in April 2014.
The Group had a closing cash position of RM29.2m (GBP5.3m*) at
the year end and approximately RM68.4m (GBP12.5m*) tied up as
working capital relating to the development of CX5, our newest
computer exchange facility in Malaysia, which will be collected
progressively in line with the expiry of the warranty period of
certain components of the fit-out works, up to the second quarter
of calendar year 2017. The reasonably healthy cash reserve was
mainly attributable to the repayment of RM20.0m (GBP3.7m*) of the
cash advances initially given by CSF, by the developer of CX5 upon
the completion of Block B of CX5 and the completion of the
divestment of equity interest in PT Cyber CSF, the
jointly-controlled entity in Indonesia with net proceeds of RM8.9m
(GBP1.6m*).
The developer of CX5 repaid RM20.0m (GBP3.7m*) of the cash
advances (given by CSF) in April 2014 upon completion of Block B of
CX5 and pursuant to the completion of Block C, the developer of CX5
fully repaid the remaining balance of the cash advances of RM29.9m
(GBP5.5m*) in June 2015.
The Group recorded total revenue of RM81.8m (GBP15.0m*), a
decrease of RM21.7m (GBP4.0m*) or 21.0%. The decrease in total
revenue was mainly attributable to the decrease in revenue from the
design and development business as most of the fit-out works
relating to CX5 had been completed in the previous financial
year.
In July 2014, Michael Leong, formerly the Director of Corporate
Development of CSF, was appointed as acting CEO. Since his
appointment, the following progress has been made:
(i) Submitted a formal proposal to the freeholder of the CX1,
CX2 and CX5 data centres to restructure the lease rental payments
of CX2 and CX5. The freeholder is still evaluating the proposal and
the Board expects to maintain an active dialogue
(ii) Secured new data centre rental customers including a new
tenancy contract secured approximately 4.1% of the capacity at CX5
Block A and approximately 45% of the capacity at CX5 Block B
(iii) Advanced discussions with several potential customers for
the rental of data centre space at CX5
(iv) Enhanced marketing efforts, focusing on data centre users
and resellers to jointly market CSF's data centres
(v) Submitted an application for a Malaysian government grant
which will enable the Group to seek a partial reimbursement for the
capital expenditure incurred / to be incurred in connection with a
tenancy contract. The matter is still in progress
(vi) Commissioned the fibre network connectivity infrastructure
to link CX1, CX2 and CX5 thereby allowing us to provide our
customers more efficient access to the internet gateway located at
CX1
Current Trading
The Group's immediate focus is to fill the available capacity of
the CX2 and CX5 data centres.
Given the competitive pressure on data centre rental prices and
the operational cost structure of the data centre rental business,
the Board recognises that even if the data centres attain full
occupancy, the Group's data centre rental division will operate at
a loss based on the existing lease rental rates payable to the
freeholder. Therefore, the proposal to reduce the lease rental
rates is imperative for the viability of the Group's data centre
rental business.
The Board and management are working tirelessly to reduce the
burn rate of our cash reserves. The Board will continue to ensure
that there is no significant cash outlay other than sums required
to cover the committed lease rentals and other necessary operating
overheads, subject to any further capital or operating expenditure
that may be required in relation to tenancy contracts.
In view of the accumulated losses of the Company, the Board is
not recommending the payment of a dividend.
The Board and the management aim to achieve controlled and
sustainable growth in revenue, EBITDA, earnings per share and
operating cash flows in the medium term. Aside from restructuring
the lease rental payments on CX2 and CX5, a key part of this will
be the generation of greater levels of recurring revenue through a
network of resellers and business partnerships. The Board is
working hard to realise these relationships, which will in turn
provide the Group with greater earnings visibility.
Data Centre Rental
With the recent completion of Block C of CX5, the Group now has
406,000 sq ft of data centre space and more than 20 MW of IT power
capacity in Malaysia.
As previously mentioned, the Group recently secured a tenancy
contract for approximately 45% of the capacity at CX5 Block B. The
customer commenced its occupancy of the data centre in October 2014
and is currently utilising approximately 25% of the capacity at CX5
Block B. It is scheduled to commission the remaining 20% of the
capacity at CX5 Block B by the third quarter of FY2016.
If the Group is able to secure the new tenancy contracts that
are presently in the pipeline, the Group has sufficient cash
reserve to fund the additional capital expenditure
requirements.
Our CX1 data centre remains at full capacity whilst our CX3 data
centre, a 2,000 sq ft facility in Johor, Malaysia, remains
substantially sub-let to a Malaysian telecommunications
company.
The Group still maintains its 20% equity interest in CX4, Hanoi,
Vietnam which has approximately 3,500 of data centre space and
approximately 1 MW of IT power capacity.
CSF Computer Exchange Jakarta (CXJ) in Jakarta, Indonesia
In May 2014, the Group completed the divestment of its entire
49% equity interest in the joint-controlled company in Indonesia
known as PT Cyber CSF ("Cyber CSF") and received net proceeds of
RM8.9m (GBP1.6m*). With the completion of the divestment, the Group
is no longer required to provide working capital support to Cyber
CSF and has eliminated its exposure to the risks associated with
the data centre business environment in Indonesia.
Other opportunities
The Group continues to both pursue and identify opportunities to
form business alliances with a view of securing large data centre
rental and/or development contracts from local and foreign
customers.
Maintenance
The Group's maintenance revenue remained stable and the
management continues to pursue new contracts to enhance our
recurring revenue streams. The management is in the process of
implementing a work-desk system to improve the response time of our
technicians to ad hoc requests by customers for technical support
and supply and replacement of equipment parts.
Design and Fit-out of Data Centres
With the completion of the development of CX5, the Group's
design and fit-out division is actively pursuing external projects.
The Group is currently pursuing a significant contract for the
fit-out of a data centre for a blue chip customer.
Outlook
The Board will continue to support the efforts of the management
in implementing its stated business strategies which it believes
will place the Group on a solid foundation from which it can return
to profitability in the near term.
The Board believes the initiative to reduce the lease rental
rates is absolutely critical to the medium to long term viability
of the Group's data centre rental business. In this regard, the
Board will support the management's efforts in securing the
agreement of the freeholder to more favourable lease rental terms
and targets to complete this exercise by the second quarter of
FY2016.
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 current financial year.
Phil Cartmell
Chairman
2 July 2015
CHIEF FINANCIAL OFFICER'S REVIEW
Introduction
The Group incurred a net loss of RM31.3m (GBP5.7m*) for FY2015
as compared to a net loss of RM132.5m (GBP24.2m*) in FY2014 which
translated to basic loss per share ("LPS") of 19.58 sen (3.58p*) as
compared to a basic LPSof 82.78 sen (15.14p*) in FY2014.
The net loss for FY2014 included bad debt provisions of RM16.9m
(GBP3.1m*) and provision for onerous leases of RM62.5m (GBP11.4m*)
and provision for impairment of plant and equipment of RM13.1m
(GBP2.4m*) which did not recur in the current financial year.
The gain on disposal of the entire 49% equity interest in the
jointly-controlled entity PT Cyber CSF in Indonesia of RM17.0m
(GBP3.1m) reduced the operating loss for the current financial
year.
The Group's closing cash position increased from RM19.8m
(GBP3.6m*) as at 31 March 2014 to RM29.2m (GBP5.3m*) as at the
year-end mainly due to the repayment of RM20.0m (GBP3.6m*) of the
cash advances by the developer of CX5 upon the completion of Block
B of CX5 and the completion of the divestment of equity interest in
PT Cyber CSF with net proceeds of RM8.9m (GBP1.6m*).
Based on the Group's unrestricted cash and bank balances at the
financial year end of RM29.2m (GBP5.3m*) and restricted cash of
RM13.1m (GBP2.4m*), net current assets balance of RM81.3m
(GBP14.9m*) and financial projections, including cash flows, for a
period up to 31 March 2017, the Group has adequate resources to
continue in operational existence for the foreseeable future.
Financial results
The financial results of the Group are summarised below:
Proforma*
2015 2014 2015 2014
RM'000 RM'000 GBP'000 GBP'000
Total Group Revenue 81,790 103,508 14,960 18,932
Gross loss (28,637) (7,084) (5,238) (1,296)
Gain on disposal
of joint venture 17,002 - 3,110 -
Allowance for doubtful
debts, net (842) (16,917) (154) (3,094)
Reduction of contingent
consideration 910 - 166 -
Impairment of goodwill (3,750) - (686) -
Impairment of tangible
assets - (13,100) - (2,396)
Provision of onerous
leases 9,113 (62,500) 1,667 (11,432)
Share of loss after
tax of jointly-controlled
entity (1,309) (7,660) (239) (1,401)
Loss from operations (24,804) (129,210) (4,536) (23,633)
Net finance income/
(cost) 777 (462) 142 (85)
Unwinding of discounts
on provision (7,813) - (1,429) -
Other (loss) / gain (182) (173) (33) (32)
Loss before tax (32,022) (129,845) (5,856) (23,749)
Tax 686 (2,620) 125 (479)
Total comprehensive
loss for the financial
year (31,336) (132,465) (5,731) (24,229)
(19.58 (82.78
Basic LPS sen) sen) (3.58p) (15.14p)
Weighted average
number of ordinary
shares for basic
EPS ('000) 160,029 160,029 160,029 160,029
Proforma*
2015 2014 2015 2014
Key Performance Indicators
Gross loss margin (35.01%) (6.84%) (35.01%) (6.84%)
(Loss) / Profit from
operations (excluding
gain on sale of property,
plant and equipment,
gain on disposal
of joint venture,
allowance for doubtful
debts, impairment
of tangible assets,
provision of onerous
leases and share
of loss after tax
of jointly-controlled
entity and associate)
margin (56.2%) (28.1%) (56.2%) (28.1%)
Trade receivables
turnover (days) 460 374 460 374
Trade payables turnover
(days) 86 95 86 95
Quick ratio 4.8 4.5 4.8 4.5
Revenue
(Proforma*)
(2015) (2014) (2015) (2014)
(RM'000) (RM'000) (GBP'000) (GBP'000)
(Data centre rental
income) (58,604) (61,901) (10,719) (11,322)
(Maintenance income) (11,254) (9,648) (2,058) (1,765)
--------- ---------- ---------- ----------
(69,858) (71,549) (12,777) (13,087)
(Design and development
of data centre facilities
income) (11,932) (31,959) (2,183) (5,845)
--------- ---------- ---------- ----------
(Total Group revenue) (81,790) (103,508) (14,960) (18,932)
--------- ---------- ---------- ----------
The Group recorded total revenue of RM81.8m (GBP15.0m*), a
decrease of RM21.7m (GBP4.0m*) or 21.0% from FY2014. The decrease
in data centre rental revenue was mainly attributable to the
non-renewal of a tenancy contract which expired in November 2014
which resulted in a significant decrease in electricity consumption
reimbursement. Maintenance revenue increased by RM1.6m (GBP0.29m*)
mainly due to more ad hoc requests received for repair and upkeep
of third party data centres.
Revenue from the design and development decreased by RM20.0m
(GBP3.7m*) or 62.7% as the final phase of the CX5 project was
substantially completed in the previous financial year and only
recognised development revenue of RM3.8m in current financial year
for the remaining works of final phase of CX5 project.
Gross loss
The Group recorded a gross loss margin of 35.01% in the current
financial year as compared to a gross loss margin of 6.84% in
FY2014. This was mainly attributable to the gross loss margin on
data centre rentals as tabulated below:
Proforma*
2015 2014 2015 2014
RM'000 RM'000 GBP'000 GBP'000
Data centre rental
revenue 58,604 61,901 10,719 11,322
Direct expenses (95,829) (82,264) (17,528) (15,047)
Gross loss on data
centre rental (37,225) (20,363) (6,809) (3,725)
Gross loss margin
on data centre rental (63.5%) (32.9%) (63.5%) (32.9%)
The higher gross loss margin on data centre rental of 63.5% was
mainly due to the higher lease rental expense of RM65.9m
(GBP12.1m*) compared to RM51.0m (GBP9.3m*) in FY2014. This was due
to the full year's accrual for lease rental expense relating to CX5
Block B as compared to less than 2 months' lease rental expense on
CX5 Block B recorded in FY2014.
Gross profit margin on maintenance income and design and
development of data centre facilities decreased marginally from
56.5% in 2014 to 52.8% in 2015 and from 24.5% in 2014 to 24.0% in
2015 respectively.
Loss from operations
The Group registered a loss from operations of RM24.8m
(GBP4.5m*) compared to a loss from operations of RM129.2m
(GBP23.6m*) in 2014 as analysed below:
Proforma*
2015 2014 2015 2014
RM'000 RM'000 GBP'000 GBP'000
Operating loss from
data centre rental,
maintenance, and
design and development
of data centre facilities (45,916) (28,359) (8,440) (5,187)
(Loss) / Gain on
sale of property,
plant and equipment (46) 20 (8) 4
Gain on disposal
of joint venture 17,002 - 3,110 -
Other operating income
- other 266 1,030 48 188
Allowance for doubtful
debts, net (842) (16,917) (154) (3,094)
Reduction of contingent
consideration 910 - 166 -
Impairment of goodwill (3,750) - (686) -
Impairment of tangible
assets - (13,100) - (2,396)
Provision for onerous
leases 9,113 (62,500) 1,667 (11,432)
Management restructuring
costs (232) (1,724) - (315)
Share of loss after
tax of jointly-controlled
entity (1,309) (7,660) (239) (1,401)
Total operating loss (24,804) (129,210) (4,536) (23,633)
----------- ----------- ---------- ----------
The higher operating loss was mainly attributable to the higher
operating loss on data centre rental as explained in Gross loss as
above and lower design and development revenue as explained in
Revenue above.
In spite of the higher operating loss, the total operating loss
in the current year was significantly lower mainly due to several
significant expense items recorded last year which either did not
recur or were significantly lower in the current year, namely
allowance for doubtful debts, impairment of tangible assets,
provision for onerous leases, management restructuring costs and
share of loss after tax of jointly-controlled entity. In addition,
the Group recorded a gain on disposal of interest in the
jointly-controlled entity of RM17.0m (GBP3.1m*) in the current
year.
Net finance cost
Net finance cost for the current year increased to RM8.8m
(GBP1.6m*) from RM1.5m (GBP0.28m*) in 2014 mainly due to unwinding
of discounts on provision (for onerous leases) of RM7.8m (GBP1.4m*)
recognised in the current year.
Taxation
The Group incurred a reversal of tax expense for the year mainly
due to deferred tax assets recognised on profitable companies
within the Group.
Earnings per share
Basic and diluted loss per share ("LPS") was 19.58 sen (3.58p*)
compared to a LPS of 82.78 sen (15.14p*) in 2014. The weighted
average number of shares during the year used for basic and diluted
LPS calculation is 160,028,667 (2014: 160,028,667).
Dividends
The Board does not propose any payment of dividends in respect
of the current financial year.
Cash and treasury
Proforma*
2015 2014 2015 2014
RM'000 RM'000 GBP'000 GBP'000
Cash (used by) /
generated from operations
before working capital
movements and net
finance income /
cost (49,785) (27,797) (9,107) (5,085)
Working capital movements 29,417 (9,256) 5,380 (1,693)
Net finance cost
/ income 7,036 462 1,287 85
----------- ----------- ---------- ----------
(13,332) (36,591) (2,440) (6,693)
Repayment of loans
by the owner of a
development project 20,000 - 3,658 -
Repayment by / (Loans
and advances to)
the jointly-controlled
entity 8,921 (2,980) 1,632 (545)
Capital expenditure (5,791) (2,439) (1,059) (446)
Acquisition of a
subsidiary (1,440) (1,200) (263) (219)
Net cash from other
investing activities 1,766 1,156 323 211
----------- ----------- ---------- ----------
Net cash inflow /
(outflow) before
financing activities 10,124 (42,054) 1,851 (7,692)
Net cash for financing
activities (781) (37) (142) (7)
---------- ----------
Net cash inflow /
(outflow) 9,343 (42,091) 1,709 (7,699)
----------- ----------- ---------- ----------
The Group recorded net cash used by operations before working
capital movements and net finance cost of RM49.8m (GBP9.1m*) as
compared to RM27.8m (GBP5.1m*) in 2014 mainly due to the decrease
in total revenue and also the higher operating loss from data
centre rental.
The Group recorded a positive movement in working capital of
RM29.4m (GBP5.4m*) as compared to a negative working capital
movement of RM9.3m (GBP1.7m*) in 2014. The positive working capital
movement in the current year is mainly due to the collection of
trade receivables arising from the data centre rental business and
also the reduction of the lease rental payments relating to CX2 and
CX5. While negotiations with the freeholder of CX2 and CX5 are
still ongoing, the management exercised its discretion to reduce
the lease rental payments in line with the Group's strategy to
conserve cash. The Group accrued for the lease rental expense in
full but actual cash payments were significantly lower.
The balance of trade receivable relating to the CX5 project of
RM36.9 million is due to be received progressively in line with the
expiry of the warranty period of certain components of the fit-out
works, which is expected to end in the second quarter of calendar
year 2017.
The gross trade receivables balance decreased from RM107.4m
(GBP19.6m*) as at 31 March 2014 to RM98.8m (GBP18.1m*) as at 31
March 2015 mainly due to collection of certain overdue trade
receivables during the year.
The developer of CX5 has repaid RM20.0m (GBP3.6m*) of the cash
advances (given by CSF) in April 2014. As at 31 March 2015, the
outstanding advances to the developer amounted to RM29.9m
(GBP5.5m*). This was fully repaid in June 2015.
During the year, the Group completed the divestment of its
equity interest in PT Cyber CSF, the jointly-controlled entity in
Indonesia and partially recovered the advances given to PT Cyber
CSF amounting to RM8.9m (GBP1.6m*).
The Group's capital expenditure was mainly for the purchase of
new equipment for the CX5 data centre for the purpose of meeting
the data centre configuration of certain customers.
Post Balance Sheet Events
The Group submitted a proposal to the freeholder of the CX1, CX2
and CX5 data centres which encompassed a revision of the terms of
the lease agreements pertaining to the aforementioned data centres.
The proposal encompasses the request for a substantial reduction to
the fixed lease rental payments, and incorporating incremental
payments based on a revenue-sharing model upon CX2 and CX5
achieving the specified monthly (data centre) rental revenue
thresholds.
Critical accounting judgement and key sources of estimation
uncertainty
The areas of critical accounting judgement and key sources of
estimation uncertainty are disclosed in Note 1 (vi) as below.
Going concern
These financial statements have been prepared on a going concern
basis. The directors' consideration of going concern and the
associated uncertainties are provided in Note 1 (v) as below.
Lee, King Loon
Chief Financial Officer
2 July 2015
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2015
Proforma
Year ended Year ended Year ended Year ended
31 March 31 March 31 March 31 March
2015 2014 2015 2014
Note RM'000 RM'000 GBP'000 GBP'000
Revenue 81,790 103,508 14,960 18,932
Cost of sales (110,427) (110,592) (20,198) (20,228)
----------- ----------- ----------- -----------
Gross loss (28,637) (7,084) (5,238) (1,296)
Other operating
income 266 1,030 49 188
Net (loss)/gain
on sale of property,
plant and equipment (46) 20 (8) 4
Gain on disposal
of other investment - 27 - 5
Gain on disposal
of joint venture 4 17,002 - 3,110 -
Share of loss after
tax
- -
* associate - -
* joint venture (1,309) (7,660) (239) (1,401)
----------- ----------- ----------- -----------
Administrative expenses (16,978) (20,380) (3,106) (3,728)
Share based payment - (728) - (133)
Bad debts written
off (301) (194) (55) (35)
Net allowance for
doubtful debts
* others (842) 3,992 (154) 730
* joint-venture - (20,909) - (3,824)
Impairment of goodwill (3,750) - (686) -
Reduction of contingent
consideration 910 - 166 -
Impairment of tangible
assets - (13,100) - (2,396)
Provision for onerous
leases 5 9,113 (62,500) 1,667 (11,432)
Management restructuring
cost (232) (1,724) (42) (315)
----------- ----------- ----------- -----------
Total operating
expenses (12,080) (115,543) (2,210) (21,133)
Operating loss (24,804) (129,210) (4,536) (23,633)
Finance income 1,748 1,051 320 192
Net foreign exchange
loss (182) (173) (33) (32)
----------- ----------- ----------- -----------
Interest payable
on bank loans, overdrafts
and finance lease (971) (1,513) (178) (277)
Unwinding of discounts
on provisions 5 (7,813) - (1,429) -
----------- ----------- ----------- -----------
Finance costs (8,784) (1,513) (1,607) (277)
----------- ----------- ----------- -----------
Loss before tax (32,022) (129,845) (5,856) (23,750)
Tax 686 (2,620) 125 (479)
----------- ----------- ----------- -----------
Total comprehensive
loss for the financial
year (31,336) (132,465) (5,731) (24,229)
=========== =========== =========== ===========
EPS
* Basic (Malaysian sen) (19.58) (82.78) (3.58)p (15.14)p
* Diluted (Malaysian sen) (19.58) (82.78) (3.58)p (15.14)p
All results derive from continuing operations.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 March 2015
Proforma
As at As at As at As at
31 March 31 March 31 March 31 March
2015 2014 2015 2014
RM'000 RM'000 GBP'000 GBP'000
Non-current
assets
Property, plant
and equipment 13,446 11,825 2,459 2,163
Interest in - - - -
associate
Other Investments 153 172 28 31
Goodwill - 3,750 - 686
Trade receivables 566 - 104 -
Deferred tax
asset 1,969 729 360 133
---------- ----------
16,134 16,476 2,951 3,013
---------- ---------- ---------- ----------
Current assets
Inventories 2,054 2,978 376 545
Trade and other
receivables 108,925 137,740 19,925 25,193
Current tax
assets 242 495 44 91
Restricted
cash 13,095 13,231 2,395 2,420
Cash and cash
equivalents 31,379 21,972 5,739 4,019
155,695 176,416 28,479 32,268
---------- ---------- ---------- ----------
Total assets 171,829 192,892 31,949 35,281
========== ========== ========== ==========
Current liabilities
Trade and other
payables 73,130 54,829 13,376 10,028
Current tax
liabilities - 491 - 90
Bank borrowings 1,164 776 213 142
Obligations
under finance
leases 140 140 26 26
Investment
held for sale - 6,392 - 1,169
74,434 62,628 13,615 11,455
---------- ---------- ---------- ----------
Non-current
liabilities
Obligations
under finance
leases 305 445 56 81
Bank borrowings 1,498 2,662 274 487
Trade and other
payables 17,830 16,679 3,261 3,051
Deferred tax
liabilities - 80 - 15
Onerous lease
provision 61,200 62,500 11,194 11,432
---------- ---------- ---------- ----------
80,833 82,366 14,785 15,066
---------- ---------- ---------- ----------
Total liabilities 155,267 144,994 28,400 26,521
========== ========== ========== ==========
Net assets 16,562 47,898 3,029 8,760
========== ========== ========== ==========
Equity
Share capital 78,936 78,936 14,438 14,438
Share premium
account 104,499 104,499 19,113 19,113
Shares held
under Employee
Benefit Trust (2,300) (2,300) (421) (421)
Other reserve (66,153) (66,153) (12,100) (12,100)
Share option
reserve 4,117 4,117 753 753
Accumulated
loss (102,537) (71,201) (18,754) (13,023)
---------- ---------- ---------- ----------
Total equity 16,562 47,898 3,029 8,760
========== ========== ========== ==========
CONSOLIDATED STATEMENT OF CASH FLOW
For the year ended 31 March 2015
Proforma Proforma
Year Year ended
Year ended Year ended ended 31 March
31 March 31 March 31 March 2014
2015 2014 2015 GBP'000
RM'000 RM'000 GBP'000
Net cash used in
operating activities (13,332) (36,591) (2,440) (6,693)
----------- ----------- ---------- ------------
Investing activities
Interest received 1,748 1,051 320 192
Loans to joint venture - (2,980) - (545)
Repayment of advances
from joint venture 8,921 - 1,632 -
Repayment of advances
from the owner of
a development project 20,000 - 3,658 -
Additions to property,
plant and equipment (5,791) (2,439) (1,059) (446)
Net proceeds from
sale of property,
plant and equipment 18 78 3 14
Proceeds from sale
of other investment - 27 - 5
Purchase of new subsidiary,
net of cash (1,440) (1,200) (263) (219)
----------- ----------- ---------- ------------
Net cash generated
from/ (used in) investing
activities 23,456 (5,463) 4,291 (999)
----------- ----------- ---------- ------------
Financing activities
Repayments of obligations
under finance leases (140) (140) (25) (26)
Decrease/(Increase)
in restricted cash 135 (122) 25 (22)
Drawdown of borrowings - 225 - 41
Repayment of borrowings (776) - (142) -
Net cash used in
financing activities (781) (37) (142) (7)
----------- ----------- ---------- ------------
Net increase / (decrease)
in cash and cash
equivalents 9,343 (42,091) 1,709 (7,699)
Cash and cash equivalents
at beginning of financial
year 19,839 61,930 3,628 11,327
----------- ----------- ---------- ------------
Cash and cash equivalents
at end of financial
year 29,182 19,839 5,337 3,628
=========== =========== ========== ============
CONSOLIDATED STATEMENT OF CASH FLOW (Cont'd)
For the year ended 31 March 2015
Proforma
Year ended Year ended Year ended Year ended
31 March 31 March 31 March 31 March
2015 2014 2015 2014
RM'000 RM'000 GBP'000 GBP'000
Loss for the financial
year (31,336) (132,465) (5,731) (24,229)
Adjustments for:
Allowance for slow
moving inventories 361 39 66 8
Allowance for diminution
of investment 19 41 3 8
Allowance for doubtful
debts:
* Others 842 (3,992) 154 (730)
* Joint venture - 20,909 - 3,824
Bad debts written off 301 194 55 35
Depreciation of property,
plant and equipment 4,107 3,353 751 613
Reduction of contingent
consideration (910) - (166) -
Impairment of goodwill 3,750 - 686 -
Impairment of tangible
assets - 13,100 - 2,396
Interest expense 8,784 1,513 1,607 277
Interest income (1,748) (1,051) (320) (192)
Gain on disposal of
joint venture (17,002) - (3,110) -
Net gain on sale of
property, plant and
equipment 46 (20) 8 (4)
Gain on disposal of
other investment - (27) - (5)
Share based payment - 728 - 133
Share of loss after
tax of jointly controlled
entity 1,309 7,660 239 1,401
Onerous leases (9,113) 62,500 (1,667) 11,432
Tax (686) 2,620 (125) 479
----------- ----------- ----------- -----------
Operating cash outflows
before movements in
working capital (41,276) (24,898) (7,550) (4,554)
Decrease in inventories 563 967 103 177
Decrease/(Increase)
in receivables 7,484 (8,748) 1,368 (1,600)
Increase/(Decrease)
in payables 21,370 (1,475) 3,909 (270)
----------- ----------- ----------- -----------
Cash used in operations (11,859) (34,154) (2,170) (6,247)
Interest paid (599) (973) (110) (178)
Income taxes paid (874) (1,464) (160) (268)
----------- ----------- ----------- -----------
Net cash used in operating
activities (13,332) (36,591) (2,440) (6,693)
=========== =========== =========== ===========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(Accumulated
Share premium Shares held Share loss) /
Share account under Employee Other option Retained
Capital RM'000 Benefit reserve reserve earnings Total
RM'000 Trust RM'000 RM'000 RM'000 RM'000
RM'000
At 1 April 2013 78,936 104,499 (2,300) (66,153) 3,389 61,264 179,635
Total
comprehensive
loss for the
year - - - - - (132,465) (132,465)
Share based
payment - - - - 728 - 728
At 31 March
2014 78,936 104,499 (2,300) (66,153) 4,117 (71,201) 47,898
Total
comprehensive
loss for the
year - - - - - (31,336) (31,336)
At 31 March
2015 78,936 104,499 (2,300) (66,153) 4,117 (102,537) 16,562
========== ================ ================ ========== ========== ============= ==========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
PROFORMA
(Accumulated
Share premium Shares held Share loss) /
Proforma Share account under Employee Other option Retained
Capital GBP'000 Benefit reserve reserve earnings Total
GBP'000 Trust GBP'000 GBP'000 GBP'000 GBP'000
GBP'000
At 1 April 2013 14,438 19,113 (421) (12,100) 620 11,206 32,856
Total
comprehensive
loss for the
year - - - - - (24,229) (24,229)
Share based
payment - - - - 133 - 133
At 31 March
2014 14,438 19,113 (421) (12,100) 753 (13,023) 8,760
Total
comprehensive
loss for the
year - - - - - (5,731) (5,731)
At 31 March
2015 14,438 19,113 (421) (12,100) 753 (18,754) 3,029
========== ================ ================ ========== ========== ============= ==========
1. General information
The Preliminary Announcement and the final accounts of the Group
were approved by the Board of Directors on 2 July 2015. The
financial information set out in this Preliminary Announcement does
not constitute the Group's statutory accounts for the year ended 31
March 2015 but is derived from those accounts. The statutory
accounts for 2015 will be delivered to the Jersey Registrar of
Companies in October 2015. The auditors have reported on the 2015
accounts and their report was unqualified but did contain an
emphasis of matter as described below.
In forming their opinion on the financial statements, which was
not qualified, the auditors considered the adequacy of the
disclosure made in paragraph (v) of note 1 and note 5 to this
preliminary announcement concerning the Group's ability to continue
as a going concern and the basis of calculation of the onerous
lease provision.
The preliminary announcement does not include the adjustments
that would result if the company was unable to continue as a going
concern.
(i) Basis of preparation
The consolidated financial statements of CSF Group plc, for the
year ended 31 March 2015 have been prepared in accordance with
International Financial Reporting Standards ("IFRS") as adopted by
the EU.
While the financial information included in this preliminary
announcement has been prepared in accordance with the recognition
and measurement criteria, this announcement does not itself contain
sufficient information to comply with IFRS. The Company expects to
publish full financial statements that comply with IFRS in late
2015.
(ii) Pro forma
The inclusion of pro forma balances in pounds Sterling is
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 balances being translated from Malaysian
Ringgits into pounds Sterling at the rate prevailing on 31 March
2015 of RM5.4673: GBP1.00. This translation should not be construed
as meaning that the Malaysian Ringgit amounts actually represent,
or have been or could be converted into the stated number of pounds
Sterling.
(iii) Basis of accounting
The accounting policies adopted are consistent with those of the
annual financial statements for the year ended 31 March 2015, as
described in those financial statements.
(iv) Forward-looking statements
Certain statements in these condensed consolidated 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.
(v) Going concern
The Group's business activities, together with the factors
likely to affect the future development, performance and position
are set out in the Chairman's Statement. The financial position of
the Group, its cash flows and liquidity positions are described in
the Chief Financial Officer's Statement. In addition, the notes to
financial statements include foreign currency risk management,
interest rate risk management, credit risk management and liquidity
risk management.
As at 31 March 2015, the Group's cash and cash equivalents
excluding deposits held on behalf of the Employee Benefit Trust
stand at RM29.2 million.
The Directors have prepared financial projections, including
cash flows, for a period up to 31 March 2017. The projections
include sensitivity testing to consider a reasonable worst case
scenario. Based on these projections and taking into consideration
the current financial position of the Group and future capital and
lease commitments, the Directors have a reasonable expectation that
the Group 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 annual
financial statements. In reaching this conclusion the directors
have paid particular attention to the following factors:
-- The positive progress that is already being made in
restructuring the business and the heightened focus on cash
management;
-- The existing cash reserves of the business, and the fact that
the Group has low levels of bank borrowings with low financial
covenants;
-- The Group's business model is to lease its data centres as
opposed to outright ownership. As a result, the Group is committed
to regular lease rental payments, which constitute a significant
proportion of the Group's cost base. The Group therefore needs to
achieve a certain level of tenant occupancy to cover the minimum
lease and other costs of ownership of given data centre;
-- The Group has already secured new tenants for part of CX5 and
is in active discussions with a number of other potential tenants
to secure an adequate level of occupancy;
-- Due to changes in the data centre rental market, current
market rentals have declined. In this regard, the Group is in
active negotiations to restructure the operating lease rental of
CX2 and CX5 and is confident that the restructuring will be
successful;
-- The Group received significant cash receipts of RM20.0
million upon the completion of block B of CX5 in April 2014 and
RM31.4 million upon the completion of block C of CX5 in June 2015.
The balance of amounts receivable relating to the CX5 project of
RM36.9 million is due to be received progressively in line with the
expiry of the warranty period of certain components of the fit-out
works relating to CX5, which is expected to end in the second
quarter of calendar year 2017;
-- The proceeds received from the disposal of the investment in
PT Cyber CSF in May 2014;
-- The funding requirements of existing and proposed new
ventures and/or projects.
Given prevailing market conditions and the current levels of
occupancy in the Group's data centres, the Group is forecast to
continue to make operating losses and have operating cash outflows.
The Board is continuing to review the Group's business model with
the aim of establishing sustainable profitable trading.
Furthermore, the financial projections show that the Group needs to
complete negotiations to reduce the level of lease rental
commitments in order to have a sustainable business model and that
the cash receipts from the developer of CX5 are required to enable
the Group to continue to operate within its existing facilities in
the short term. The directors note that the receipt of proceeds of
the remaining balance of CX5 project is governed by existing
contractual arrangements and that based on the current status of
the development and discussions with the developer and freeholder
they have no reason to believe that the receipt of proceeds will be
subject to significant delay or other issue. The directors believe
that they will be successful in negotiating a lease rental
reduction and therefore reducing the cost base of the Group to a
sustainable level, and that such rental reduction can be achieved
without other adverse impacts on the Group. On this basis they
continue to adopt the going concern basis. However, there is
inherent uncertainty around the timing, amount and other impacts of
any lease rental reduction, which is considered to represent a
material uncertainty that may cast significant doubt over the
Group's ability to continue as a going concern and, therefore, the
Group may be unable to realize its assets and discharge its
liabilities in the normal course of business.
Notwithstanding the above and taking into consideration the
current financial position, future capital and lease commitments of
the Group, the directors have a reasonable expectation that the
Group 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 financial
statements for the year ended 31 March 2015. The financial
statements do not include the adjustments that would result if the
company was unable to continue as a going concern.
(vi) Critical accounting judgement and key sources of estimation uncertainty
Critical judgements in applying the Group's accounting
policies
In the process of applying the Group's accounting policies, the
Directors must make estimates and assumptions that affect the
amounts recognised in the financial statements. Several of these
estimates and judgments are related to matters that are inherently
uncertain as they pertain to future events. These estimates and
judgments are evaluated at each reporting date and are based on
historical experience, internal controls, advice from external
experts and other factors, including expectations of future events
that are believed to be reasonable under the circumstances. The
resulting accounting estimates may vary from the actual results.
The estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year are as follows:
Revenue recognition
Revenue from the installation, integration and fit-out of
equipment is recognised over the period of the related fit-out
activity, which requires the Directors to consider the costs
incurred to the balance sheet date and estimate the costs to
completion of the contract. The estimation of costs to complete on
contracts is judgemental and requires an estimate of the cost of
materials, labour hours and cost, and time to complete. The
estimate of the total costs to complete is based on historical
experience and status of each project. The estimates are reviewed
regularly and revised as necessary. Any significant change in these
estimates will result in a change to the revenue recognition and
the margin for future periods.
Provision for bad and doubtful debts
The provision for bad and doubtful debts includes the assessment
of amounts receivable on an individual and collective basis. For
individual provisions, events and circumstances such as breaching
credit terms, evidence of the debtor experiencing financial
difficulties, and potentially the probability of the debtor
entering bankruptcy or financial reorganisation are considered.
Based on these indicators a judgment is made whether a provision is
required. In respect of a collective assessment, the estimation of
the future settlement profile of trade receivables is judgemental
and includes consideration of past experience in collecting
payments, an increase in the number of delayed payments past the
credit period as well as observable changes in the economic
conditions that correlate with default on receivables.
Recoverability of amounts owing from IDCB
Trade and other receivables includes an aggregate amount of
RM68.4m due from IDCB, the developer of the CX5 data centre.
Subsequent to the financial year end, the Group received RM31.4
million upon the completion of block C of CX5 in June 2015. The
balance of cash receipts of RM31.5 million is due to receive
progressively in line with the expiry of the warranty period of
certain components of the fit-out works relating to CX5, which is
expected to end in summer 2016. The remaining RM5.5 million is
related to retention sum of CX5 fit-out works, which is due to be
received in April 2017. The recoverability of the remaining amount
due from IDCB is dependent on the completion of certain milestones
anticipated in the legal agreements, which contemplates recovery
over the next financial year. This represents a significant
receivable on the Group's balance sheet, there is inherent risk in
both the recoverability of the receivables and the timing of
associated receipts. However, given the current status of the
construction project the Directors have concluded the receivables
are not impaired.
Onerous lease assessment
The Group's business model is to lease data centres, and as such
the Group is committed to lease rentals and certain other costs of
ownership. As such, the Group needs to achieve a certain level of
rental income from tenants over the life of the data centre lease
such that revenue received will exceed costs. If this is not the
case, then the data centre lease rental contract could be
onerous.
In order to calculate onerous lease obligations the directors
are required to estimate the future tenancy profile of a data
centre, which is inherently judgemental as the unexpired terms of
the leases range from 8 to 10 years and the estimate may vary as a
result of changes in the utilisation and price of a data centre's
space. The onerous lease provision included in long term
liabilities as set out in note 8 has been calculated on the
assumption that the Group will agree a reduction in ongoing lease
rental costs in respect of certain of its data centres. Whilst the
directors expect such a lease rental reduction to be successfully
negotiated, there is no legal agreement in place as at the date of
approval of these financial statements, and it is inherently
uncertain whether such a legal agreement will be achieved. If such
an agreement is not reached then the onerous lease provision would
be increased from RM61.2 million to RM164.2 million. This is a
significant judgment which is considered to represent a significant
material uncertainty.
Impairment of property, plant and equipment
The Group assesses whether there are any indicators of
impairment for all non-financial assets at each reporting date.
Non-financial assets are tested for impairment when there are
indications that the carrying amounts may not be recoverable.
When value in use calculations are undertaken, the directors are
required to estimate the expected future cash flows from the assets
or cash generating unit and choose a suitable discount rate in
order to calculate the present value of those cash flow. The
estimate may vary depends on the market interest rate, utilisation
and price of the data centre space.
Deferred tax asset recognition
The Group recognises deferred tax assets to the extent that it
is probable that taxable profits will be available to utilise the
asset. At each balance sheet date, the Directors review the
forecast taxable profits of the Group to assess the recoverability
of the deferred tax asset. To the extent that it is no longer
probable that sufficient taxable profits will be available, the
carrying amount of the deferred tax asset is reduced.
2. 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 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.
3. 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.
Year ended 31 March 2015 Data centre Design and development
rental Maintenance of data centre facilities Consolidated
RM'000 RM'000 RM'000 RM'000
Revenue 58,604 11,254 11,932 81,790
Cost of sales (95,829) (5,313) (9,285) (110,427)
------------ ------------ --------------------------- -------------
Gross profit / (loss) (37,225) 5,941 2,647 (28,637)
Other operating income - - 266 266
Administrative cost (3,635) (572) (647) (4,854)
Allowance for doubtful debts (655) - (187) (842)
Allowance for slowing stock - - (361) (361)
Allowance for diminution of investment - - (19) (19)
Unwinding of discounts on provision (7,813) - - (7,813)
Onerous leases 9,113 - - 9,113
Staff costs (4,132) (938) (981) (6,051)
Segment depreciation (31) (23) (100) (154)
------------ ------------ --------------------------- -------------
Segment result (44,300) 4,408 618 (39,352)
Bad debts written off (301)
Impairment of goodwill (3,750)
Reduction of contingent consideration 910
Management restructuring costs (232)
Corporate cost (5,539)
Finance income 1,748
Gain on disposal of joint venture 17,002
Net foreign exchange loss (182)
Loss on disposal of property, plant and
equipment (46)
Share of loss of jointly controlled entity (1,309)
Finance costs (971)
-------------
Loss before tax (32,022)
Tax 686
-------------
Loss after tax (31,336)
=============
Year ended 31 March 2014 Data centre Design and development
rental Maintenance of data centre facilities Consolidated
RM'000 RM'000 RM'000 RM'000
Revenue 61,901 9,648 31,959 103,508
Cost of sales (82,264) (4,193) (24,135) (110,592)
------------ ------------ --------------------------- -------------
Gross profit / (loss) (20,363) 5,455 7,824 (7,084)
Other operating income - - 1,030 1,030
Administrative cost (3,719) (463) (1,599) (5,781)
Allowance for doubtful debts 2,192 (212) 2,012 3,992
Allowance for slowing stock - - (39) (39)
Allowance for diminution of investment - - (41) (41)
Bad debts written off - - (194) (194)
Onerous leases (62,500) - - (62,500)
Staff costs (4,410) (838) (2,628) (7,876)
Segment depreciation (44) (20) (69) (133)
------------ ------------ --------------------------- -------------
Segment result (88,844) 3,922 6,296 (78,626)
Allowance for doubtful debts
- joint venture (20,909)
Management restructuring costs (1,724)
Impairment of tangible assets (13,100)
Corporate cost (7,238)
Finance income 1,051
Net foreign exchange loss (173)
Gain on disposal of property, plant and
equipment 20
Gain on disposal of other investment 27
Share of loss of jointly controlled entity (7,660)
Finance costs (1,513)
-------------
Loss before tax (129,845)
Tax (2,620)
-------------
Loss after tax (132,465)
=============
4. Gain on disposal of joint venture
The gain on disposal of joint venture is as follow:
As at
31 March
2015
RM'000
Net liabilities of joint
venture (17,002)
(CSF Group plc's proportion
of ownership interest)
Gain on disposal 17,002
Net cash inflow/ proceed -*
on disposal
=========
* Sale proceed USD 1 on the disposal of joint venture.
On 24 March 2014, the Group had entered into an agreement with a
third party to dispose of its entire interest in PT Cyber CSF
including the settlement of the net amount owing by PT Cyber CSF to
the Group for a net consideration USD2,732,483 (RM8,921,284) which
was received in full by the Group on 22 May 2014.
5. Onerous leases
As at As at
31 March 31 March
2015 2014
RM'000 RM'000
Movement in provision of
onerous leases
At start of financial year 62,500 -
Additional provision during
the financial year 29,025 62,500
Utilisation of provision (38,138) -
Unwinding of discount 7,813 -
At end of financial year 61,200 62,500
========= =========
The Group's business model is to lease data centres and
committed to lease rentals and certain other costs of ownership. As
such, the Group needs to achieve a certain level of rental income
from tenants over the life of the data centre lease such that
revenue received will exceed costs.
The provision of onerous leases in the financial statements
represents the present value of the future lease payments that the
Group is presently obliged to make under non-cancellable operating
lease contracts, less revenue expected to be earned on the lease.
The estimate may vary as a result of changes in the utilisation of
the data centres. The unexpired terms of the leases range from 8 to
10 years.
The onerous lease provision included in long term liabilities
has been calculated on the assumption that the Group will agree a
reduction in ongoing lease rental costs in respect of certain of
its data centres. Whilst the directors expect such a lease rental
reduction to be successfully negotiated, there is no legal
agreement in place as at the date of approval of these financial
statements, and it is inherently uncertain whether such a legal
agreement will be achieved. If such an agreement is not reached
then the onerous lease provision would be increased from RM62.5
million to RM164.2 million.
6. Earnings per share
The calculations for earnings per share, based on the weighted
average number of shares, are shown in the table below.
Year Year
ended ended
31 March 31 March
2015 2014
Net loss for the financial
year after taxation attributable
to members (RM'000) (28,286) (132,465)
Weighted average number
of ordinary shares for
basic earnings per share
('000) 160,029 160,029
Weighted average number
of ordinary shares for
diluted earnings per share
('000) 160,029 160,029
The number of ordinary shares for diluted earnings per share is
the weighted average number of ordinary shares of CSF Group plc
that would have been in issue. The calculation of the diluted
earnings per share does not assume conversion, exercise or other
issue of potential ordinary shares that would increase the net
profit or decrease the net loss per share. As the Group is
currently in a loss making position than the inclusion of potential
ordinary shares associated with share options in the diluted loss
per share calculation would serve to decrease the net loss per
share. On that basis, no adjustment has been made for diluted loss
per share.
7. Dividend
The Board does not propose any payment of dividends in respect
of the current financial year.
8. Contingencies
The Group holds a number of guarantees with various banks in
respect of banking facilities as follows:
As at As at
31 March 31 March
2015 2014
RM'000 RM'000
Bank guarantees 27,549 25,507
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
END
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