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

 

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news