News | Business
23 Oct 2017 2:36
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Olympic Games
  • Ski Report
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business

    Rakon full-year loss widens on sales drop

    Rakon posted a wider full-year loss after sales fell 16 per cent and the company recognised an impairment against its Centrum Rakon India joint venture.


    Rakon has posted a wider full-year loss after sales fell 16 per cent and the company recognised an impairment against its Centrum Rakon India joint venture.

    The net loss widened to $13.6 million in the 12 months ended March 31, from $1.7 million a year earlier.

    Sales fell to $94.7 million from $112.7 million, while cost of sales recorded a more modest decline to $61 million from $64.8 million.

    The latest results include impairments of about $6.6 million, of which $3.2 million was against the carrying value of its 49 per cent-owned Centrum Rakon India Private Ltd JV, which Rakon said reflected value-in-use calculations based on future forecasts that "did not support the full value of this investment being retained".

    As revenue declined the company also increased inventory obsolescence provisions during the year by $4.2 million, it said.

    Restructuring costs amounted to $3 million and among other one-time items was a $1.9 million impairment of goodwill.

    The decline in sales reflected a 16 per cent drop revenue from telecommunications, it said.

    Positives in the year included a reduction in net debt to $4.5 million from $12.6 million and an increase in positive operating cash flow to $9.5 million from $7.3 million, it said.

    Managing director Brent Robinson said Rakon continued to suffer from reduced demand from equipment makers in the telecommunications sector "as major global network operators had continued to delay infrastructure investment".

    "While we experienced a lift in business in the telecommunication market in the final quarter, it was not enough to recover the reduced demand that had negatively affected revenue in the first three quarters," he said.

    Key priorities in the latest year were reducing operating costs and balance sheet risk, he said.

    "Although the result for FY2017 is very disappointing, there has been a number of achievements in the year that provide Rakon a stronger position from which improved results can be achieved in the coming year," Robinson said.

    Rakon shares fell 7 per cent to 19.5c and have fallen 29 per cent in the past 12 months.


    NZN




    © 2017 NZN, NZCity


     Other Business News
     20 Oct: Shares rise as weak dollar helps companies
     20 Oct: Right to reject media merger, court hears
     20 Oct: Auckland Airport spend under microscope
     20 Oct: SkyCity runs ruler over troubled Darwin
     20 Oct: Buying a Queenstown house is 'impossible'
     20 Oct: Metlifecare's $240m Hobsonville plan
     19 Oct: Dollar falls as NZ First backs Labour
     Top Stories

    RUGBY RUGBY
    Folau to miss Wallabies' end-of-year Tour More...


    BUSINESS BUSINESS
    Shares rise as weak dollar helps companies More...



     Today's News

    Motorsports:
    McLaughlin's Supercar gamble pays off 21:57

    Politics:
    Japan election: Shinzo Abe and his policies are unpopular, so why are voters set to stick with him? 21:47

    Golf:
    Ko finishes second in latest LPGA event 21:17

    Environment:
    Magnitude 5.4 quake near Kaikoura 18:57

    Education:
    New Zealand election: Students hope tertiary fees will be scaled back under Jacinda Ardern 18:37

    Rugby:
    Folau to miss Wallabies' end-of-year Tour 18:37

    Rugby League:
    No Kiwi return guarantee for Taumalolo 18:07

    International:
    'It's about bloody time': Period 'blood' shown in advertisement in effort to confront taboos 17:47

    Accident and Emergency:
    Drunk teen crashes car in Alexandra 17:27

    Health & Safety:
    NZ hospital spurns Ronald McDonald 16:57


     News Search






    Power Search


    © 2017 New Zealand City Ltd