Sydney - Tuesday - July 14: (RWE Australian Business News) -...

Sydney - Tuesday - July 14: (RWE Australian Business News) -
Dexion Ltd (ASX:DEX), "Australia's leading storage systems group", today
announced that improved cashflows from better performance in the second
quarter, combined with improvements to working capital, had allowed the
company to close the six months to June 30 with net debt of $44m.
This compares with forecast net debt of $49m at June 30, as
anticipated in the company's equity raising announcement of June 24.
As a result, after completion of the entitlement offer (the
institutional component has already completed), Dexion's net debt will
be reduced to $32m, based on the minimum net proceeds of the
underwritten amount of the entitlement offer of $12m.
In addition, at June 30, the company's pro forma gearing
position (net debt/equity) will be reduced from 83pc at December 31 2008
to about 53pc and pro forma equity will increase to more than $60m.
The size of Dexion's order book at June 30 2009 was a "healthy"
$64m, a similar level to June 30 2008. This includes a rebound in orders
from SMEs, reflecting improved confidence in the economy.
Directors say this is encouraging and supports the anticipated
earnings improvement in the second half of calendar 2009.
The company expects to announce its results for the half-year
ended June 30 on August 11.