Rectifier Technologies has warned of a material uncertainty over its ability to continue as a going concern after revenue fell 41% and its annual loss widened to $6.39 million. An auditor-highlighted liquidity risk now sits alongside a $13 million order book and new EV charging products under development.
- Revenue from continuing operations fell 41% to $10.17 million
- $6.39 million after-tax loss included a $5.6 million inventory provision
- Auditor highlighted material uncertainty related to going concern
- $2.33 million WBC facility matured after year-end
- Directors and management provided $799,785 in loans
Loss widens as charging volumes fall
Rectifier Technologies Ltd (ASX:RFT) has put a formal warning label on its balance sheet after a sharp fall in EV charging shipments pushed total revenue from continuing operations down 41% to $10.17 million in FY2026. The company recorded a $6.39 million loss after tax, compared with a $783,792 loss a year earlier.
The result was heavily affected by inventory. Rectifier booked a provision of approximately $5.6 million during the year for slow-moving and obsolete stock, while inventory at 30 June was reported at $7.53 million net of a $6.39 million obsolescence provision. Management said affected products are still being sold, with some newer customers gradually increasing their orders.
The statutory accounts show sales revenue of $7.84 million, down from $14.65 million, alongside $2.32 million of other income. That other income included a $1.96 million customer deposit written off, a non-recurring item that materially reduced the reported loss but did not represent sales growth.
Auditor highlights funding pressure
RSM Australia Partners issued an unmodified audit opinion, but separately drew attention to a material uncertainty related to going concern. The warning reflects the annual loss, $235,434 of operating cash outflows and the company’s need to manage its obligations while trading activity remains subdued.
The pressure became more visible after year-end. A $2.33 million WBC bank loan facility matured on 10 August 2026, and directors and management had provided $799,785 in loans to Rectifier by 28 September. The report says the terms of those loans had not been agreed at the reporting date. Rectifier also reported $1.98 million in cash at 30 June and access to $1.06 million in undrawn Westpac facilities that expire in September 2027.
Directors say the business can continue as a going concern, pointing to $13 million of open customer orders, mostly expected to be delivered within 12 months, its current asset position and cash-flow forecasts. That order book is an important buffer, but converting orders into shipments and cash will matter more than the headline value. Customer concentration remains pronounced: three customers accounted for about 83% of sales during the reporting period.
New products offer an operational test
Rectifier is not abandoning product development. Its RT22 G3 EV charging module passed internal qualification and validation testing, and small-volume pilot production has begun at the Malaysian factory. The lighter module is expected to become available for customer validation after October 2026.
RT21 customer testing is continuing, with final release planned by the end of December 2026. The company is also exploring an RT-X product generation aimed at EV charging, AI data centres and existing markets, although development remains subject to technical feasibility, customer demand and commercial viability.
For FY2027, management intends to prioritise product upgrades, new-market opportunities, manufacturing and supply-chain efficiency, while rebuilding its sales and engineering teams. The immediate test is less glamorous: whether new orders clear existing inventory quickly enough, and whether the resulting cash flow can replace the funding support now being supplied by insiders.
Bottom Line?
The $13 million order book gives Rectifier room to manoeuvre, but liquidity remains dependent on delivery timing, inventory conversion and a clearer solution for the matured WBC facility.
Questions in the middle?
- What terms will ultimately govern the $799,785 in director and management loans?
- How much of the provisioned inventory can be sold, and at what margins, during FY2027?
- Can RT22 G3 and RT21 customer validation translate into recurring orders before cash reserves tighten further?