Key points
- Group revenues surged by 70.8% to $7.8m
- Gross profit declined by 23.5% due to expiration of Flow agreement
- Loss after tax of $1.4m, primarily influenced by termination of Flow arrangement
Full summary
DXN Limited's data centre manufacturing division (PMDC) reported a 70.8% increase in revenues to $7.8m in H1FY25, largely derived from existing projects such as the East Micronesia Cable Station (EMCS), the company's largest win to date. The company continues to capitalize on ongoing demand in the modular data centre market, particularly driven by growth in international bandwidth demand and subsea cable deployments. DXN won several new contracts in the Cable Landing Station (CLS) market, including a $974,000 contract with a global internet company. The company also progressed multiple projects for the mining sector, including with Stanmore Coal. Despite the revenue growth, the company's gross profit declined by 23.5%, largely due to the expiration of the Flow agreement. As a result, the group recorded a loss after income tax of $1,416,774 (H1FY24: loss of $838,392), primarily influenced by the termination of this arrangement. Underlying EBITDA profit was $189,723 (H1FY24: profit of $1,027,045).