Services company CSF Group (LON:CSFG) saw shares rise over 2 percent on Friday, after reporting an annual pre-tax profit on the back on sales of subsidiary companies.

Pretax profit was RM113.9 million for the year to the end of March, up from a loss of RM33.2 million a year earlier. Revenue fell however, to RM23.9 million from RM26.4m the year before, due to the sale of loss making making subsidiary CSF CX Sdn Bhd.

Going forward, the company warned that significant expenditure would be required for the replacement of aging equipment at the CX1 data centre.

“The board expects for the group to be able to reduce its operating losses in the next financial year, following the completion of the disposal, although on significantly decreased revenues,” the company said.

CSF Group have been involved in the design, development, construction, fit-out and maintenance of more than 200 data centers in Malaysia and overseas and has diversified into management and operations of a high availability facility.

CSF Group shares are currently trading up 2.35 percent at 2.61 (1434GMT).