Results at a glance: Eroad, Rakon, Napier Port

Inside Rakon's Auckland plant. Photo / Dean Purcell

Eroad

Telematics firm Eroad, which merged with rival Coretex in December 2021, reported a net loss of $3.0 million for the year to March 31, from its year-ago net loss of $9.6m. On an ebit basis, the Auckland-based firm squeaked to a $1.7m profit from its FY2022 ebit loss of $4.5m.

Revenue, swelled by the Coretex deal, increased 52 per cent to $174m.

For FY2024, Eroad forecast revenue growth of 6 to 9 per cent and ebit of breakeven to $5m.

It was the first full year that included a full contribution for Coretex, following a four-month contribution in FY2022. Eroad, which has been culling staff as it merges several Eroad and Coretex operations, said it had cut $10m in costs in FY2023, and was targeting the same amount in cuts during FY2024.

Eroad said it added 404 customers for its fleet management technology in North America (for a total of 2625 subscriptions), 290 in Australia (for 1699 total) and 1556 in NZ (for a total 13,387).

Shares, which have fallen 80 per cent over the past year as CEO Mark Heine battles to execute a turnaround, especially in the key North American market, closed Tuesday at 58c. In midday trading, the stock ws up 19.0 per cent to 69c.

Rakon

Rakon reported a 30 per cent fall in net profit to $23.2m for the 12 months to March 31.

Rakon declared its first-ever dividend, paying shareholders 1.5 cents per share. No dividend guidance was given for FY2024.

Underlying ebitda fell 23 per cent to $42.2m.

Revenue rose 5 per cent to $180.3m.

The Auckland-based firm, which turns quartz crystals into radio frequency control systems that help telecommunications gear, satellites, missile guidance systems and emergency beacons maintain the same “heartbeat” as other electronics, said it expects FY2404 underlying ebitda of between $26m and $34m.

Rakon shares closed Tuesday at $1.03. The stock is down 32 per cent over the past 12 months. In midday trading, the stock was up 2.9 per cent to $1.06.

Napier Port

The impact of Cyclone Gabrielle made its presence felt on Napier Port’s first half earnings, with its net profit falling by 3.3 per cent to $8.7 million.

The company said the cyclone, which hit the East Coast in February, had made for an uncertain full-year outlook.

Napier Port cut its interim dividend to a fully imputed 1.7 cents per share from 2.8c in the previous comparative period.

Revenue rose 22.8 per cent to $62.3m in the half due to higher container volumes and the return of cruise vessels to the port.

Chair Blair O’Keeffe said the company had entered 2023 with an optimistic outlook.

“Pandemic pressures including constraints on labour were easing, and cargo flows were buoyant supported by increasing shipping services,” he said.

The company’s newly-built Te Whiti wharf was enabling significant flexibility, and underpinning a positive long-term outlook for the business, he said.

“As a result, Napier Port had been tracking to the upper end of guidance which has subsequently been tempered by Cyclone Gabrielle,” he said.