- Release Date: 08/05/14 12:17
- Summary: FORECAST: RAK: Rakon Market Update 8 May 2014
- Price Sensitive: No
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RAK 08/05/2014 10:17 FORECAST REL: 1017 HRS Rakon Limited FORECAST: RAK: Rakon Market Update 8 May 2014 8 MAY 2014 (RAK) RAKON MARKET UPDATE Rakon Limited (NZX:RAK) ("Rakon") advises the market that it expects to report a Net Loss After Tax (NLAT) for the year ended 31 March 2014 of -$79.9 million (previous guidance of NLAT of -$59 million to -$55 million). Rakon confirms that FY2014 'Underlying EBITDA' guidance remains unchanged at between -$8 million to -$5 million and it has met its target of reducing bank borrowings below $12 million at 31 March 2014. The increase in NLAT results from non-cash adjustments relating to impairment of goodwill, accelerated depreciation on Property Plant & Equipment (PP&E) and the finalisation of the impairment relating to the Equity Sale of RCC completed in the second half of FY2014. Rakon announced plans on 5 March 2014 to close its Lincoln, UK plant, transferring all manufacturing to New Zealand in FY2015. Following the annual testing for impairment of goodwill undertaken at the FY2014 financial year end, the value-in-use calculation for the New Zealand cash generating unit does not support the carrying amount of UK goodwill once transferred. A total goodwill impairment of $15.0 million is expected. Further to the financial year end testing for impairment, certain PP&E assets have been assessed as having a reduced useful life, resulting in an acceleration of depreciation of $7.4 million being brought forward into FY2014. The Directors note that market guidance is provided based on unaudited results. Rakon will release its preliminary results announcement for FY2014 to the market on 22 May 2014. -ends- Contact: Simon Bosley Chief Financial Officer Rakon (09) 571 9206 www.rakon.com Disclosure of Non-GAAP Financial Information: Rakon has used 'Underlying EBITDA' as a measure of non-GAAP financial information in this announcement and it is defined as: "earnings before interest, tax, depreciation, amortisation, impairment, loss on disposal of assets, employee share schemes, non-controlling interests, adjustments for associates and joint ventures share of interest, tax & depreciation, and other non-cash items." 'Underlying EBITDA' is a non-GAAP measure, with its presentation not being in accordance with GAAP. The Directors present 'Underlying EBITDA' as a useful non-GAAP measure to investors, in order to understand the underlying operating performance of the Group and each operating segment, before the adjustment of specific non-cash charges and before cash impacts relating to the capital structure and tax position. 'Underlying EBITDA' is considered by the Directors to be the closest measure of how each operating segment within the Group is performing. Management uses the non-GAAP measure of 'Underlying EBITDA' internally, to assess the underlying operating performance of the Group and each operating segment. The use of 'Underlying EBITDA' in this guidance announcement is a forecast and has not been extracted from the audited financial statements for the full year. End CA:00250222 For:RAK Type:FORECAST Time:2014-05-08 10:17:45
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Ann: FORECAST: RAK: Rakon Market Update 8 May 201
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Last
65.0¢ |
Change
-0.010(1.52%) |
Mkt cap ! n/a |
Open | High | Low | Value | Volume |
64.0¢ | 65.0¢ | 64.0¢ | $42.56K | 66.43K |
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No. | Vol. | Price($) |
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0 | 50 | 65.0¢ |
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Price($) | Vol. | No. |
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70.0¢ | 12469 | 0 |
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