share price, page-7

ACN 95 009 375 553
Level 2 564 St Kilda Road Melbourne Victoria 3004 Australia Phone 61 3 9533 9333
Fax 61 3 9533 9388
RESULTS ANNOUNCEMENT
NYLEX OPERATIONS AHEAD OF TARGET
- UPDATE ON TRADING , DIVESTMENTS & WATER BUSINESS
The Directors of Nylex Limited today confirmed that the Group was ahead of target to achieve its forecast earnings range for the year ending June 30, 2005 of net profit after tax (NPAT) between $14.4 million - $15.7 million, before considering the impact from divestments.
The interim result (before actual and planned divestments) is a Net Profit After Tax of $12.6 million, following a stronger performance by the majority of the Group’s continuing businesses and lower than forecast effective tax rates, which are likely to continue for the immediate future.
Earnings Before Interest and Tax (EBIT) and before divestment considerations totalled $21 million, an improvement of 19 percent on last year. The improvement from continuing businesses was 43 percent. Full year EBIT will be at the upper end of the full year forecast range of between $32 million to $34 million announced last year.
Managing Director of Nylex, Mr Glen Casey, said, “We are pleased with the operating performance of the Group’s continuing businesses and the launch of our new Water Solutions business, where we lead the market in our new range of products for both inside and outside the home. Four more divestments were completed in the half and we are well advanced with the divestment of the remaining non-core automotive business”.
The Group’s non-core automotive businesses - foreshadowed at the Annual General Meeting last November to be sold at lower than book value - are expected to be divested at a loss of between $45 million to $50 million. This is reflected in the half year result announced today (net loss after tax $33.8m).
Mr Casey said the decision to sell the businesses for less than book value was clearly in the best interests of the Group and its shareholders as the divestment of the automotive businesses will inject cash into Nylex, while also allowing Group term debt to be reduced to $115 million.
It will also represent the conclusion of the ongoing divestment process, which will free up considerable capital and management time to concentrate on higher margin and fast growth opportunities, including the company’s promising Water Solutions business.
Directors provide the following update on the Water Solutions business:
• A purpose built tank manufacturing site in Sydney is now operational and supplying product.
• The first pilot homes for Brisbane Water will be completed in March, and discussions for the full 5,000 roll-out from May are progressing positively.
• Discussions for similar programmes in Sydney and Victoria are progressing positively.
• A contract has been secured to supply 30,000 houses with Nylex Flomaster water efficiency retrofits to Gold Coast Council over the next three years.
• An exclusive supply agreement is now being finalised to supply product to more than 200,000 water efficiency retrofits over the next three years in New South Wales and Queensland
• Major resellers, including Bunnings and Mitre 10, are now ranging Nylex water products.
• Legislation in Victoria and New South Wales (effective July, 2005), requiring all new homes to have a water tank, is now starting to generate enquiries for future business from builders.
• As a result of the launch of the water products on television during the Australian Open Tennis, Nylex website enquiries ran at over 35,000 in January.
In Nylex’s other businesses, AH Plant Hire has been able to grow its revenue base and at the same time continue to reduce operating costs, resulting in improved operating profits. The process of upgrading the rental fleet has continued, providing new equipment with lower associated operating costs. Plant Hire looks set to continue its excellent performance in the second half.
Consumer Products division has continued the process of rationalising its operations. In Australia the Consumer Products operations were relocated to a single site at Somerton in Victoria. Sales revenue has decreased, influenced by range rationalisation and the inclement summer weather in both Australia and New Zealand. Combined with the costs associated with the relocation, the operating profit was marginally down on last year. Consumer Products will continue the process of expanding its product range with innovative branded products and DIY water conservation solutions.
Earnings from the Industrial Products division were up on last year as a result of the Group’s water initiative, completing the restructure of waste products, the relocation of fuel tank manufacture to Elizabeth (South Australia) and the establishment of a focussed decorative business.
Mr Casey concluded by reaffirming the expectation that the operating forecasts will be delivered for the full year.
For Further Information:
Glen Casey Tim Allerton
Managing Director & Chief Executive City PR
(613) 9533 9333 (612) 9267 4511

15 April 2005
ACN 95 009 375 553
Level 2 564 St Kilda Road Melbourne Victoria 3004 Australia Phone 61 3 9533 9333
Fax 61 3 9533 9388
ANNOUNCEMENT
PROFIT UPGRADE & CAPITAL RAISING
Nylex Limited today announced a capital raising and a profit upgrade. The capital raising is to be used to facilitate growth, particularly in the Plant Hire and Water businesses, to fund working capital requirements and to enable debt reduction.
Nylex announced that its net profit after tax for the current year would now be in a range of between $17-19m (before automotive write-downs) compared to the previous guidance of $14.4m - $15.7m.
Importantly, the earnings per share guidance provided in November 2004 will be met or exceeded notwithstanding the issue of additional shares.
A divestment of some or all of the automotive businesses is still possible by June 30 as interested parties are presently in due diligence.
The capital raising of up to $45m will include a placement to professional and sophisticated investors, a share purchase plan for existing shareholders and a pro-rata allocation to the current majority shareholder.
The capital raising will be managed by Bell Potter Securities Limited together with Lodge Partners Pty Ltd. Nylex has requested a trading halt whilst the transaction is completed.
Nylex’s growth plans by business are attached for your information.
For Further Information:
Glen Casey Tim Allerton
Managing Director & Chief Executive City PR
(613) 9533 9333 (612) 9267 4511
Vaughan Webber Daniel Sharp
Bell Potter Securities Limited Lodge Corporate Services (613) 9200 7060
(613) 9256 8700


Ms Kate Kidson
Australian Stock Exchange
530 Collins Street
MELBOURNE VIC 3000



Dear Ms Kidson

Nylex Limited: Price Query

Thank you for your facsimile received at 2.00 pm this afternoon concerning movements in the Nylex share price.

You have raised certain queries and the company’s response to these queries is as follows:

The company is not aware of any unannounced information which could provide an explanation for recent trading.
Not applicable.
The company maintains the view that its net profit after tax for the current year is in the range of between $17-19m (before automotive writedowns).
Yesterday afternoon the Managing Director & Chief Executive Officer, Mr Glen Casey delivered a presentation to Citigroup. During the course of the presentation Mr Casey was asked if the company’s EBITA for the financial year 2006 would be in the vicinity of $46m. Mr Casey responded to Citigroup by stating that this projection had never been made by the company and that on presently available information this projection was not supportable. He repeated that at this stage the company was not prepared to go beyond stating that its EBIT for the year ending June 2005 would be in the range of $33-35m. It is noted that Citicorp Nominees Pty Ltd holds 13.87m shares in Nylex and the company assumes that these have been divested. The company assumes that this possible large divestment by Citicorp Nominees Pty Ltd has led to other divestments. The company also notes that this movement is accompanied by a fall in the All Ordinaries and also coincides with possible “year end tax sales”.
The company is in compliance with the Listing Rules and in particular, Listing Rule 3.1

If you have any queries please do not hesitate to contact me.

Yours faithfully





Anthony Serong
General Counsel & Company Secretary