DXN Limited signs two Modular Data Centre orders - with Boeing Defence Australia and Covalent Lithium Pty Ltd for builds in Western Australia worth ~$1 million

Highlights:

•  DXN has signed a supply agreement with Boeing Defence Australia to design, prefabricate and build a fully engineered Modular Data Centre (DC) in a contract valued ~$700,000.
•  DXN has signed a limited Notice of Award Letter with Covalent Lithium Pty Ltd and received a purchase order to design, prefabricate and build a fully engineered Modular Data Centre for ~$325,000 for delivery to Mt Holland, Western Australia (WA)

December 2020 Half Year Highlights:

•  Sales $4.1m - an improvement of 65% on 1H FY20
•  Gross margin 35% - a gain of 158% on 1HFY20
•  EBITDA loss $225,854 - a 92% improvement on 1HFY20
•  New contracts secured - $3.6m

CEO Commentary

DXN has made significant progress with its restructuring and strategy implementation and the benefits began to emerge in 1HFY21. A strong focus on reducing operating expenses, improved gross margin (from 22% to 35%) and increased sales improved EBITDA by 92% compared to 1HFY20. We are seeing positive results with regards to cost containment and improved efficiencies being achieved at DXN’s new manufacturing facility.

Full Report

https://www.asx.com.au/asxpdf/20210218/pdf/44ssw7n5p2cs94.pdf