Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Rakon Continues On Growth Path

1 September 2006

Rakon Continues On Growth Path

Rakon is on track for a good result for the first 6 months of the 2007 fiscal year.

This follows on from a strong finish to its 2006 financial year which saw it post a net profit after tax of $4.8m, up 65% on the previous year.

At the company's first AGM since listing on the NZX in May, Rakon chairman Bryan Mogridge said the projected 6 month result had come about through strong demand for the company's products coupled with a favourable USD exchange rate that had been cemented in with previously reported hedging strategies.

Mr Mogridge added, "This locked in exchange position should see Rakon exceed its full year EBIT forecast by almost $3m if volumes finish in line with the prospectus."

Rakon's prospectus, released in April this year, forecast a net profit after tax of $7.2m - a 50% increase over the 2006 result.
Mr Mogridge said any extra profit above the FX generated gain would rely upon continued strong demand in the second six months of the year.

However, Mr Mogridge cautioned against reading too much into Rakon's first six month's result as a guide to the full year.

He said it was too early to ascertain whether demand would continue at its current level, with reliance on customers' retail product sales determining the re-order level.

Rakon Managing Director, Brent Robinson, also commented that demand was strong and added the company was on track to achieve the forecast reductions in material costs.

Mr Robinson said the company's cash position was strong, with working capital better than forecast due to good management in all areas. Rakon's capital programmes are progressing and he noted that the Board is considering accelerating investment in some areas to optimise market opportunities.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Mycoplasma Bovis: More Properties Positive

One of the latest infected properties is in the Hastings district, the other three are within a farming enterprise in Winton. The suspect property is near Ashburton. More>>

ALSO:

Manawatū Gorge Alternative: More Work Needed To Choose Route

“We are currently working closely and in partnership with local councils and other stakeholders to make the right long-term decision. It’s vital we have strong support on the new route as it will represent a very significant long-term investment and it will need to serve the region and the country for decades to come.” More>>

ALSO:

RBNZ: Super Fund Chief To Be New Reserve Bank Governor

Adrian Orr has been appointed as Reserve Bank Governor effective from 27 March 2018, Finance Minister Grant Robertson says. More>>

ALSO:

ScoopPro: Helping PR Professionals Get More Out Of Scoop

Scoop.co.nz has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>

Insurance: 2017 Worst Year On Record For Weather-Related Losses

The Insurance Council of New Zealand (ICNZ) announced today that 2017 has been the most expensive year on record for weather-related losses, with a total insured-losses value of more than $242 million. More>>

ALSO: