Rubicon posts another loss
Rubicon has posted another loss following a strong kiwi dollar and a slumping housing market.
Biotech company Rubicon has posted another loss for the first-half, substantially greater than that of the previous year.
Both a slow housing market and the strong New Zealand dollar put pressure on earnings of their daughter company Tenon, with the company reporting a loss in the six months ended December 31 of US$8 million (US 1.4 cents per share) compared to the previous year’s loss of US$1 million (US 0.4 cents per share).
Tenon did however experience no change in revenue with a US$162 million result.
The company’s gross profit turned out US$39 million which, although it was down US$4 million on the prior period, US$3 million of this was due to the strengthening of the kiwi dollar.
Including US$2 million of non-recurring costs, along with non-cash depreciation and amortisations of the additional US$3 million, an Operating Loss before financing costs of US$5 million was recorded.
Chief executive Luke Moriarty and chairman Steve Kasnet said in a company statement that the loss does not directly reflect the value their Tenon and ArborGen investments.
“We remain confident that with time, as ArborGen matures and Tenon is supported by a more favourable operating environment, our future earnings results will grow to reflect the true value of both of these two businesses.”
Consolidated debt for Rubicon rose to US$51 million as at December 31 from the previous year’s $US39 million, almost doubling the company’s finance costs to a total of US$2 million.
NBR Staff
Thu, 01 Mar 2012
Thu, 01 Mar 2012
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Rubicon posts another loss
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