Raymarine's troubles continue
By IBI Magazine
Raymarine's troubles don't appear to be easing. In the wake of its latest trading statement, shares fell to an all-time low of 7.5p on Friday after the company admitted it was unable to meet its debt covenants.
Stockbroker Panmure Gordon also stopped research coverage of the stock. "Due to the company's uncertain future and the failure of a trade buyer to emerge during the summer, we have decided to cease research coverage in this stock," says Panmure.
Yesterday Raymarine told the market that it could not meet certain financial covenants and it reported a 23 per cent drop in sales in the first 10 months of 2009. Other brokers have Raymarine as a 'sell' stock. "There is unlikely to be much left in the way of value for shareholders, even if the company does get taken over," says Seymour Pierce. Earlier this year Raymarine was talking with Garmin as a possible buyer but no deal came of it.
Raymarine developed a strong leadership in manufacturing and supplying navigation systems, which was fine while the market was strong. The downturn and the company's heavy indebtedness of some £91.6m at the end of October have seen its fortunes reversed. It is now in desperate need of a buyer and without one it may well face collapse.
(20 November 2009)
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