If SPK collaborate with RAK I will sell my SPK holding.
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If SPK collaborate with RAK I will sell my SPK holding.
Results in line with earnings guidance - EBITDA at 9mil (guidance $9-10mil).
Revenue decrease disappointing but shouldn't be a surprise to holders given earlier guidance.
Thoughts?
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Results for announcement to the market
Date: 19 May 2016
Rakon Limited (RAK)
Reporting period 12 months to 31st March 2016
Previous reporting period 12 months to 31st March 2015
COMMENTS
Telcos’ infrastructure investment delays reduce earnings for Rakon
• Net loss after tax of NZ$1.7m vs Net profit after tax of NZ$3.2m in FY2015
• Revenue NZ$112.7 million (FY2015 NZ$131.4 million)
• 25% decrease in revenue from Telecommunications major contributor to decrease in total sales volumes and revenue
• Growth in margin dollars (and % of revenue) from consolidated subsidiaries: FY2016 NZ$47.9 million (43%) vs NZ$41.8 million (32%) in FY2015
• Increase in operating cash flow: FY2016 NZ$7.3 million vs NZ$3.6 million operating cash flow loss in FY2015
• New investment in Thinxtra opens up opportunities in Internet of Things (IoT)
NZD Millions, Audited FY2016 FY2015 % Change
Revenue 112.7 131.4 (14.2)
Underlying EBITDA1 9.0 15.4 (41.4)
Net profit/(loss) after tax(1.7)3.2 (>100.0)
Gross Profit 47.9 41.8 14.6
Operating expenses 47.8 46.2 (3.3)
Operating cash flow 7.3 (3.6) >100.0
Net debt 12.6 13.4 6.0
This dog does not hunt but unfortunately still capable of delivering a rabid bite to investors who stray too near!
Accumulated losses now approaching $70m
classic example of a badly managed company that exist only as a front for the family to live out their dreams....at other shareholders expense....your choice if you want to invest in these guys but the performance history of the company(10 years or so) is laughable to date.
Someone needs to remind the Robinson family that whilst they may still have something to offer the company actual performance shows that they, more than likely, may not be the best candidates to fill their chosen rolls.
I just listened in to their conference .. the Robinsons are a laughing stock..
don't get me wrong i strongly believe the company has potential, but they need young directors added to the board to steer it well.... and obviously some beter financial management.. i doubt their cfo has any input besides being a bookkeeper and a puppet for the Robinsons.
I think the company is ample for a hostile takeover.. if another tech company wants synergy and a backdoor to nzx, rakon would be a great match!!
Same old, same old........
This company is a prime example of the need to "Do your own research"
Never paid a dividend, history of extremely poor business decisions, abysmal shareholder guidance, failure to put the interests of the business before personal interests, using shareholder capital to maintain lifestyle, inability to anticipate market needs
Possibly the worst example of personal and company ethics on NZSE
Must be time to increase director fees.......