Centro requests the trading halt remain in place until the sooner of the making of that announcement or the opening of trade on Monday, 19 January 2009.

The approval of this facility provides the CEC Group with the security to take advantage of the many opportunities that will present themselves over the next two years.

CEC Group co-founder and CEO, Mr Roy Lavis, explained, “We have cut our debt from $168 million to just under $80 million in eight months. This was a condition that we had to meet and we are very happy to say that as a result, our financier has agreed to put a two year facility in place.

CEC Group's three core businesses are: property development, civil construction services and supply of construction materials to the building and construction industries are all intact and running at very high levels of efficiency. CEC Group has long-term project work on the books and a large land bank that will be released according to demand in North Queensland.”

Desane Group owns $48.5million of properties and other assets and manages $16.5 million of industrial and commercial properties in the Sydney region.

Desane Group was trading at 36 cents.

A one month interim extension to all of Centro’s facilities expiring on 15 December 2008 has been agreed in order to allow time for the completion of documentation for this refinancing and stabilisation.

The A$5.05 billion senior secured debt owed to the Australian lending group and US private placement noteholders, A$1.05 billion will be replaced by a hybrid security and A$4.0 billion will be converted into term debt loans. The A$1.05 billion hybrid security will be senior secured convertible bonds (Hybrid Securities) subscribed for by the Australian lending group. The hybrid security will have a seven year maturity date and the potential for conversion into ordinary stapled securities.

If converted in full, the Hybrid Securities would constitute, in aggregate with the 14.9% of stapled securities referred to above 90.1% of the post-conversion (fully diluted) ordinary stapled securities of Centro.

Centro Chairman Paul Cooper said, “The Board has carefully considered all alternatives available to Centro over the last 12 months and has concluded that the transaction agreed in principle with our financiers provides the best outcome for our shareholders. The outcome provides a future for Centro and retention of some value for our existing shareholders and is superior to the prospect that Centro otherwise faced of entering administration or liquidation.”

- 1H2009 Revenue of $382.8 million for EBIT of $10.3 million and NPAT of $4.9 million
- EBIT margin impacted by weak New Zealand market, strengthening of management team and 1H2009 ‘one off’ costs
- $730 million of FY2009 revenue underpinned by current contracts, work orders and ongoing service commitments (up from $680 million at 31 August 2008)
- Gross profit from maintenance and recurring services increased to 55% (from 51%)
- Solid balance sheet; net operating cashflow up
- Declaring maiden interim dividend of 2.0 cents per share, fully franked
- FY2009 EBIT forecast within a range of $27.0 to $30.0 million

Cashflow and balance sheet

Norfolk’s net operating cashflow for the period was $3.4 million. The Group’s net debt at 30 September 2008 was $58 million. Norfolk operates within its banking covenants and debt facility limits. Its main senior debt facility is not due for renewal until July 2010.

2009 Forecast

Notwithstanding Norfolk’s backlog and major contract wins, the continued extreme economic unpredictability has led to the company revising its FY2009 EBIT forecast to be within a range of $27.0 million to $30.0 million.

The JV arrangement will better enable Norfolk Group to leverage opportunities within the expanding construction sector in the United Arab Emirates (UAE). Novus Capital, which focuses on construction and development projects in the UAE, is seeking to establish a vertically-integrated operation to provide the key elements to development projects including MEP design and construction services.

The key benefits to Norfolk of the JV agreement are immediate expansion into the UAE to target large contracts valued at a minimum MEP component of AUD$30 million and partnering with a internationally respected construction company.  In addition, an increased likelihood of being awarded major design and construction projects on a ‘cost -plus’ basis from the JV agreement.

Norfolk Group was trading at 28.5 cents.