Raymarine announcement

[Wiggo]

Press release from Raymarine earlier this morning:

On 7 October 2008 Raymarine reported that its like for like sales for the nine months to 30 September 2008 were 8.5 per cent below the comparable period last year. Since then Raymarine has seen a rapid deterioration in the markets it serves. Order intake and sales during the month to date have both been substantially below the Board’s expectations. As a result the Board now believes that Raymarine’s results will be significantly below the lower end of the market’s expectations for the year ending 31 December 2008.

In the last two weeks there have been a large number of announcements and indications by boat builders around the world that they will be building significantly fewer boats both this year and in 2009. Raymarine’s sales through other channels have also experienced a sudden slow down.

Peter Ward, Executive Chairman, initiated a thorough review of Raymarine’s costs following the departure of the Company’s previous Chief Executive. The Company will be seeking to eliminate a significant element of costs whilst ensuring that it retains its long-term ability to design and market innovative and exciting new products.

 

[volvopaul]

Yes and im sure there will be more companies relaying the same sort of info.

I was talking to a southcoast marina owner yesterday, he was saying this year has been poor especially in the summer months on repairs and servicing/engine work etc, I dont think it will get any better in the next few months.

 

[gjgm]

and I think we can assume this will be happening across the whole economy.

 

[Wiggo]

Raymarine shares down 60% this morning. High in May of £3.50 ish, this morning's low was 21p...

 

[longjohnsilver]

That's not good. If they go bust then there's a lot of us who will have problems when their on board equipment goes wrong. Hopefully they will survive but it looks like it's going to be a struggle.

 

[Wiggo]

They were approached by someone earlier this year with regard to a possible acquisition, but that petered out. So someone will be waiting to pick them up cheap if they go tits up.

 

[mjf]

Great time to move into flash new HQ building near Puerto Solento! poor sods. Nice new research boat delv just a few months ago too.


Shame - timing is everything.

 

[npf1]

Looking at their financial statements, they now must surely be at risk of breaching their loan covenants. Ouch.

With the equity now at trading £18m and the £ to $ at a five-year low, I wonder if Garmin will step back in - assuming they were the interested party ealrier in the year - as the price would be a fraction of what they would have had to pay six months ago.

 

[Wiggo]

Down another 21% this morning to 14p. Market cap is now £11.5m! When Garmin (or whoever) were looking at them earlier in the year, the market cap was £285m so a five month wait might well end up saving them a mint.

 

[mjf]

Wiggo - do they own the new HQ or have it built and leased same?

 

[Wiggo]

Don't know, I'm afraid, Mike. If they do, then it's worth more than the company at the moment...