Everyone said the same about BPC when it was 12 cents. And I enjoyed the criticism in the bar
AUSTRIM NYLEX LIMITED 2003-02-27 ASX-SIGNAL-G
HOMEX - Melbourne
+++++++++++++++++++++++++ Directors of Austrim Nylex Ltd today announced a reduction of losses for the group in the six months to December 31, 2002.
The group's net loss was reduced 50 per cent from $28.5 million to $14.2 million, following a 2 per cent rise in revenue from ordinary activities to $571.1 million.
Chairman of Austrim Nylex Ltd, Mr Dick Nitto, said "The group's continuing businesses are generally performing well and generating significant cashflow, which is being invested in capital expenditure and the restructuring of our operations".
Writedowns and provisions for further necessary rationalisation of the group were $32.9 million, $22 million of which related to goodwill in relation to AH Plant Hire. Directors have not declared a dividend nor interest on the Mandatory Converting Notes, and stated that they do not expect any change in the immediate future.
Managing Director and Chief Executive, Mr Glen Casey said "The group's results over the six month period show an improvement in the operations of the majority of our business units across five divisions, however we continue to be held back by our onerous and costly financing arrangements."
"While we are executing a number of initiatives to strengthen our balance sheet, part of which was the sale of $70.2 million worth of non-core businesses during the half year, the high level of bank debt and its associated expenses continue to weigh down the group and its ability to provide returns to shareholders and noteholders", he added.
The group continues to move forward with its recovery strategy, which features the continuing divestment of non-core assets, focus on operations with good long term prospects, maximisation of synergies across the five divisions and a change in corporate culture.
The divestment of non-core businesses caused the group's sales revenue to fall slightly, but also reduced borrowing costs from $20.9 million to $18.2 million.
Mr Casey said, "Compared to the first half of last year, Building and Nylex divisions improved EBIT significantly, more than offsetting the reductions in contributions from AH Plant Hire and Automotive".
Revenue of Austrim Nylex's continuing businesses rose 7 per cent from $448.7 million to $478.8 million, while their EBIT (Earnings Before Interest and Tax) rose 21 per cent from $22.4 million to $27 million. The group's operating free cashflow from continuing businesses reached $34.7 million, while capital expenditure totalled $15.3 million during the period.
The Building Division's results reflects the Australian housing market which remained strong throughout the period.
Nylex has benefited from the major restructuring programmes and targeted sales growth.
As previously announced AH Plant Hire has traded at lower than expected levels due to increasing competition and the drought.
Automotive's results have been adversely affected by problems commissioning new equipment at Marsden and McGain and lower percentage payouts under the Government's ACIS (Automotive Competitive Investment Scheme). Mr Casey concluded, "We continue to work deliberately and effectively to put the group on a stronger footing, with our major focus on creating further synergies across our continuing businesses and the divestment of non-core operations".
For Further Information Call:
Glen Casey Tim Allerton Austrim Nylex City PR (03) 9529 2999 (02) 9281 7272
