RAK
12/12/2014 10:18
ASSET
NOT PRICE SENSITIVE
REL: 1018 HRS Rakon Limited
ASSET: RAK: Sale of Lincoln, UK Property
12 DECEMBER 2014 (RAK)
SALE OF LINCOLN, UK PROPERTY COMPLETES TRANSFER OF UK MANUFACTURING
Rakon Limited (NZX:RAK) ("Rakon" or "the Company") announces the successful
completion of the sale of its Lincoln, UK property for a consideration of GBP
0.9 million.
The property sale completes the strategic initiative announced earlier in
2014 to close the Lincoln, UK plant and shift all manufacturing to the New
Zealand plant. Production previously undertaken at Lincoln has progressively
moved to the Company's Auckland, New Zealand site with the full transfer
successfully achieved in October 2014. The Company expects reduced operating
expenses from the closure in the second half of FY2015.
Rakon will receive GBP 0.9 million on the sale of the property, with final
net proceeds of GBP 0.8 million after costs and taxes associated with the
sale. Net proceeds will be used to reduce bank borrowings. The Company will
report a gain on sale after tax of GBP 0.5 million in the financial
statements for the second half of FY2015 from the disposal of the property.
The gain on sale is not material in terms of any change to the current
earnings guidance for FY2015.
-ends-
Contact:
Simon Bosley
Chief Financial Officer
Rakon 09 571 9206
www.rakon.com
About Rakon
Rakon is a global high technology company and a world leader in its field.
The company design and manufacture advanced frequency control and timing
solutions. Rakon has eight manufacturing plants including four joint ventures
plants and five research and development centres. Customer support centres
are located in 13 offices worldwide. Rakon is a public company listed on the
New Zealand stock exchange, NZSX, ticker code RAK.
End CA:00258821 For:RAK Type:ASSET Time:2014-12-12 10:18:37
