Rakon (RAK) AGM 2025 summary

Opening remarks and agenda

• The meeting was held as a hybrid event, with both in-person and online participation, and included instructions for Q&A and voting procedures.

• The Chair, Dr Mark Bregman, confirmed a quorum, outlined the agenda, and delivered the opening address, followed by the Chief Executive's review and shareholder questions.

Board and executive committee updates

• Significant board changes included three independent directors stepping down and new appointments, with Dr Mark Bregman, Jon Raby, and Dr Lisbeth Jacobs joining.

• Jon Raby and Dr Jacobs chose not to stand for election, prompting Lorraine Witten to remain temporarily to ensure NZX compliance.

• Peter Baines was appointed as a new independent director, bringing extensive technology and leadership experience.

• Board composition, independence, and governance were major focuses, with ongoing debate about capability and shareholder influence.

• Leadership and business structure were reorganised, aligning market-segment business units and matching critical roles to top talent.

Financial performance review

• FY25 revenue was $104m, down 19% year-on-year, but the second half saw a 49% improvement over the first half.

• Gross margin for FY25 was 43.1%, up 9% in the second half compared to the first.

• Underlying EBITDA for FY25 was $9.5m, near guidance mid-point, with net assets of $155m and significant investment capacity.

• Aerospace & Defence revenue reached $42.4m, a 15% year-on-year increase, and the telecommunications segment stabilised.

• Cost discipline led to a 10% reduction in normalised opex and a 16% reduction in inventory.