Sharechat Logo

Rakon boosts bank funding to meet increased telco demand

Wednesday 12th December 2018

Text too small?

Rakon has added $6 million to its cash working capital facility with ASB Bank, which it says will help meet the increased demands for telecommunications infrastructure. 

The high-tech components maker now has cash facilities of up to $15.5 million, which it said will largely be used on the continuing roll-out of 4/4.5G and 5G mobile telecommunications infrastructure. 

Last month Rakon noted that increased demand and its own plans to launch new telecommunications products had contributed to higher net debt of $3.9 million. Telecommunications accounted for about 46 percent of Rakon's first-half revenue. 

Rakon's confidence in the telecommunications sector comes from the prevalence of devices needed for 5G mobile infrastructure. The network enables device-to-device communication needed for widespread automation and would need a greater number of small cell sites. 

The company got itself into cash surplus at the end of the March 2018 financial year, having spent several years repaying debt taken on to fund an unsuccessful venture in China. It used that position to buy out its Indian joint venture partner this year to gain control of a core part of Rakon's manufacturing strategy. 

The shares fell 1 cent to 29 cents, but are still up 26 percent so far this year. 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZD headed for 0.6% weekly gain against greenback
PREVIEW: RBNZ tipped to keep cash rate at 1.75%, reiterate next move could be up or down
Sky TV hires Deloitte partner as fill-in CFO
Vector fined $3.6 mln in industry first
SIS Group to partner with Platform 4 Group
Dry weather cutting dairy production, boosting power costs
22nd March 2019 Morning Report
NZ dollar dips back below 69 US cents, focus shifting to RBNZ
Top Energy's geothermal expansion to cut lines charges
MARKET CLOSE: NZ shares rise on Fed restraint, local GDP growth; Auckland Airport slides

IRG See IRG research reports