Rakon Limited has swung back to profit in FY26, reporting a 24% revenue lift and doubling EBITDA, while Bourns' takeover offer edges closer to completion with 85% shareholder acceptance and pending French regulatory approval.
- Rakon returns to profitability with NZ$3.1m NPAT
- Group revenue climbs 24% to NZ$128.8m in FY26
- Underlying EBITDA more than doubles to NZ$20.3m
- Bourns' takeover offer accepted by 85% of shareholders
- French regulatory approval remains outstanding
Profit Recovery Highlights FY26 for Rakon
After two consecutive years in the red, Rakon Limited (NZX:RAK) has posted a robust return to profitability for the fiscal year ending March 2026. The technology company, specialising in electronic components, saw group revenue jump 24% to NZ$128.8 million, while underlying EBITDA more than doubled to NZ$20.3 million. Net profit after tax swung from a NZ$5.8 million loss in FY25 to a modest NZ$3.1 million gain, marking a significant turnaround.
The improved earnings come despite the burden of one-off expenses related to the ongoing takeover bid by Bourns, Inc., including consulting fees and accelerated employee incentives. Gross margin expanded by 39% to NZ$62.2 million, underscoring operational leverage amid rising sales.
Balance Sheet Constraints and Cash Focus
Rakon's balance sheet at 31 March 2026 reveals NZ$12.2 million in cash against NZ$21.2 million in borrowings, with inventory levels at NZ$54 million and working capital totalling NZ$82.8 million. Management has flagged cash and working capital as key constraints, signalling a continued emphasis on cash conversion to underpin financial stability following the strong year-end trading performance.
Bourns Takeover Offer Progresses with High Shareholder Support
Bourns, Inc. launched its full takeover offer for Rakon shares at NZ$1.55 per security in February 2026, aiming to acquire all equity securities including certain employee share rights. As of 23 April, acceptances have reached 85.03%, inching closer to the 90% threshold required for compulsory acquisition. The offer remains conditional on regulatory consents, notably approval under the French Monetary and Financial Code, which is still pending.
The independent directors of Rakon have recommended shareholders accept the offer, and the bid is scheduled to close on 7 May 2026. The outcome of the French regulatory review will be pivotal in determining whether Bourns can secure full ownership.
Looking Ahead: Audit and Regulatory Watch
Rakon’s FY26 results are currently unaudited and based on provisional management accounts, with the audited financial statements expected to be released alongside the company’s Annual Report. Investors will be keen to see if the audit confirms the strong turnaround and how the company manages its working capital challenges.
Meanwhile, the pending French regulatory approval introduces an element of uncertainty to the takeover’s completion timeline. Should the approval be delayed or withheld, it could complicate Bourns’ path to full control despite the high level of shareholder acceptance.
Bottom Line?
Rakon’s FY26 turnaround boosts its appeal amid Bourns’ takeover push, but cash constraints and French regulatory hurdles remain key watchpoints.
Questions in the middle?
- Will the audited FY26 accounts confirm the provisional profit recovery?
- How might cash and working capital pressures influence Rakon’s operational flexibility post-takeover?
- What is the timeline and likelihood for French regulatory approval to clear the takeover conditions?