Raymarine PLC, marine electronics manufacturer, is operating close to the limit of its current bank facilities and may be exploring an equity fundraising or a sale of the business.
Panmure Gordon & Co analyst Oliver Wynne-James told Reuters that most buyers would baulk at paying the company’s current net debt value. For the full year ended Dec. 31, Raymarine’s net debt was 93.5 million pounds, after 19.7 million pounds of foreign exchange movement. Wynne-James said competitors Navico or Garmin could be seen as potential buyers. But he added that those electronics manufacturers are “busy enough with their own marine electronic assets.”
Brokerage firm Seymour Pierce also mentioned Garmin and Navico as potential buyers, but also questioned their ability to step in at this point. “We believe that Raymarine is, despite recent failings, a good business with a well regarded global brand. Because of this the equity fundraising has some potential but we would expect it to come at a discount with strings attached,” said the firm in a statement. Seymour Pierce maintained a “sell” rating on the stock.
Raymarine shares closed down 14 per cent at 17 pence on the London Stock Exchange on Friday, and at presstime on Monday, had declined another 11 per cent to 15.25 pence.