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

 


Rakon to shut UK plant, flags wider full-year loss

Rakon to shut UK plant in cost cutting drive, flags wider full-year loss

By Suze Metherell

Jan. 16 (BusinessDesk) – Rakon, whose shares have halved in the past year, plans to close its UK factory as soon as this year, taking a provision that would widen its full-year loss.

The maker of quartz crystals used in navigation systems and smart phones has advised workers at its Lincoln plant that it intends to close the facility, leaving only a research and development centre in the UK.

A board review showed “duplicate overhead structures and manufacturing capability exists between the Lincoln and New Zealand operations,” the Auckland-based company said in a statement. “The proposal is for a full closure of the plant with the manufacturing of products to be shifted to Rakon’s New Zealand plant.”

Should the closure be completed in the year ending March 31, Rakon expects to report a full-year loss of between $55 million to $59 million, compared with an earlier forecast of a loss of $54 million.

Rakon’s shares fell 2.6 percent to 18.5 cents, having traded as high as 38 cents a year ago and down from as high as $5.35 in November 2007.

Last year the company quit its Chinese operations to reduce debt. The company said today that its announcement on the UK factory won’t delay its target of reducing bank debt below $12 million by March 31.

Rakon also reiterated its target of a return to positive earnings in 2015, with earnings before interest, tax, depreciation and amortisation of between $10 and $15 million. On an EBITDA basis the company is forecasting a loss of between $5 to $8 million in the current year, a deterioration from its previous guidance of between a loss of $3 million and break even.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news