News | Business
24 Jun 2017 7:05
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
     23 Jun: Hammer attack on scrap metal worker
     23 Jun: NZ dollar steady, markets look to US data
     23 Jun: NZ shares fall after 'uneventful' week
     23 Jun: NZ wool prices fall at auction
     23 Jun: Vector signs deal in Alice Springs
     23 Jun: Kiwis help Caribbean's disaster planning
     22 Jun: Seeka tips drop as kiwifruit harvest down
     Top Stories

    RUGBY RUGBY
    Lealiifano chance for Super finals return More...


    BUSINESS BUSINESS
    Hammer attack on scrap metal worker More...



     Today's News

    Entertainment:
    Naomi Watts and Reese Witherspoon sent heartfelt birthday messages to Nicole Kidman on Wednesday (20.06.17) 6:57

    Entertainment:
    Robbie Williams was nearly rushed to hospital after he had a panic attack at home 6:27

    Rugby League:
    Titans' Hayne stars again in Campbelltown 6:27

    Entertainment:
    Haley Joel Osment got his big break in Ikea 21:57

    Rugby League:
    Sharks won't add to Origin casualty ward 21:57

    Business:
    Hammer attack on scrap metal worker 21:57

    Entertainment:
    Puff Daddy has told Jay-Z to "get ready" for "a lot of love" 21:27

    Rugby League:
    Hunt return to NRL due to injury, not form 21:17

    Entertainment:
    Scarlett Johansson has been spotted enjoying a "romantic" dinner with her attorney 20:57

    Education:
    'Brain finger-printing' could soon be used as evidence in Australian courts 20:57


     News Search






    Power Search


    © 2017 New Zealand City Ltd