Raymarine tries to shore up its financesPosted on
Raymarine says it’s exploring equity fund-raising or a sale of the business, and in the absence of either will seek to secure additional medium-term debt facilities with its banking group.
Last month, global sales were “broadly in line” with the expectations, the company said in a statement last week.
“In the U.S., sales have remained at depressed levels as both OEMs and retail channels continue to de-stock,” the company said. “In the U.K. and the rest of the world, sales were slightly weaker than expected. Many OEMs are now shut for an extended summer break with indications that they plan to restart production right again in the autumn.”
Given the decline, Raymarine has implemented a number of programs to mange its costs, resulting in a significant reduction in operating costs and a consolidation of all the company’s U.K. operations to one site, the company said.
The marine electronics manufacturer says it is operating close to the “limit of its current bank facilities, in particular as a result of the effect of changes in exchange rates on Raymarine’s borrowings and its facility limits.”