- Release Date: 14/11/13 11:38
- Summary: HALFYR: RAK: Rakon September 2013 Half Year Result
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RAK 14/11/2013 09:38 HALFYR REL: 0938 HRS Rakon Limited HALFYR: RAK: Rakon September 2013 Half Year Result Rakon Limited Results for announcement to the market Reporting period 6 months to 30th September 2013 Previous reporting period 6 months to 30th September 2012 Amount NZ$000 % Change Revenue from ordinary activities 80,481 -10% Earnings before interest, tax, depreciation, amortisation, impairment & share based payments (4,709) a -200% Earnings before interest & tax (44,252) b -1222% Net (loss)/profit after tax (45,682) b -1054% Note a: includes share of EBITDA from associates and joint ventures of $2,870,000 (September 2012: $1,942,000). b: includes equity accounted earnings of $1,365,000 (September 2012: $501,000). Amount per security Imputed amount per security Interim / Final Dividend Nil Nil Record Date Not Applicable Not Applicable Dividend Payment Date Not Applicable Not Applicable Comments Rakon Limited (NZX: RAK) reports a half year net loss after tax of $NZ45.7 million (m) (September 2012: $4.0m net loss). This number includes a loss from continuing operations of $21.4m and a loss from discontinued operations of NZ$24.3m. Total impairments of NZ$32.7m are reported in the net loss for the period; NZ$7.6m from continuing operations and NZ$25.1m from discontinued operations. Following Rakon's announcement on 5 July 2013 to divest an 80% equity interest in Rakon Crystal (Chengdu) Co. Ltd (RCC sale), the entity is classified as a discontinued operation (Statement of Comprehensive Income) with assets & liabilities held for sale (Balance Sheet). Subsequent to 30 September the RCC sale completed. As a consequence of the RCC sale, Rakon will have a reduced involvement in the smart wireless device market (SWD). This results in additional impairment charges of NZ$5.9m against the PP&E assets of the NZ 'cash generating unit' and $2.9m of SWD related stock provisions. EBITDA of NZ-$4.7m is reported (September 2012: NZ$4.7m), which includes NZ$3.8m of provisions for a planned restructure in France and the increase in stock provisions of $2.9m. After the adjustment of restructure costs and stock provisions, EBITDA is NZ$2.0m comparative to the previous half year of NZ$4.7m. A detailed reconciliation of EBITDA to net loss after tax, is included at Note 4 of the Interim Financial Statements. The company's operating cash flow of NZ$7.8m, reflects a release in working capital previously held in SWD and improvements in managing working capital over the period. Bank borrowings of $36.9m are reported for the period. Subsequent to 30 September and following the settlement of the RCC sale, bank borrowings have been reduced to NZ$17.0m in line with the plans set out by the Board and structured with Rakon's bank. EBITDA from Rakon's India Joint Venture of $2.4m compares with $1.6m for the previous half year. The increase is reflective of the growth in the telecommunications infrastructure market, where Rakon has a strong market position and product offering in 4G. The net loss although substantial, is in line with previously announced plans to structurally align Rakon to those parts of its business where there are growth opportunities and stronger profit margins. Full year profit guidance for FY2014 remains unchanged. Directors Declaration (NZX Listing Rules Appendix 1, 3.1 & 3.2) The Directors declare that the consolidated financial statements on pages 3 to 20 has been prepared in compliance with applicable Financial Reporting Standards. The accounting policies the Directors consider critical to the portrayal of the company's financial condition and results which require judgements and estimates about matters which are inherently uncertain are disclosed in note 2.4 of the financial statements that form part of this announcement. End CA:00243768 For:RAK Type:HALFYR Time:2013-11-14 09:38:43
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- Ann: HALFYR: RAK: Rakon September 2013 Half Year
Ann: HALFYR: RAK: Rakon September 2013 Half Year
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