Highlights

  • Range International faces a defining test as its latest strategy develops.
  • A Shareholder offer aims to scale recurring rental income amid losses and expensive borrowing.
  • The latest financial figures show why execution matters for RAN investors.
  • Investors must weigh the next milestones against funding and operating risks.

Range International (ASX:RAN) wants to raise up to A$1.69 million from its own shareholders to scale up a rental model for plastic pallets, and the 1 October 2026 announcement gives a clear view of why. The company is betting that renting recycled-plastic pallets in Asia can eventually produce steadier income than selling them one by one.

Recycled pallets made in Indonesia

The company describes Range as a manufacturer of plastic pallets. Its Indonesian operations run through PT Re>Pal Internasional, and Indonesia generated US$969,810, or 93.5 per cent, of its US$1.037 million Revenue in the half-year to 30 June 2026.

Revenue rose 11 per cent from US$931,000 a year earlier, and Gross Profit improved to about 25 per cent from 22 per cent, which management attributed to better Manufacturing efficiency despite higher recycled plastic costs.

The entitlement offer

Under the offer, eligible shareholders can buy one new share for each share held at A$0.09, with a Record Date of 6 October 2026. The booklet is due on 9 October, the offer closes on 20 October and new shares are expected to begin trading on 28 October.

The company intends to use A$1.0 million for rental pallets and growth, A$0.5 million for Debt repayment, A$0.15 million for Working Capital and A$0.04 million for costs. The board may place any shortfall within three months. It includes a top-up Facility for shareholders taking full entitlements.

Why the rental model matters

It said a fleet of around 400,000 rental pallets would produce annual recurring income equal to the record sales revenue it achieved from conventional pallet sales in 2025.

The fleet is far from that scale.

Conventional sales also continue. The largest pallet-buying client confirmed a 17,000-pallet order for year-end delivery, and in the June quarter Range delivered 32,873 pallets, up 27 per cent on a year earlier, at a record gross Margin of 35 per cent.

The company also says it now runs its squeezer at less than half its previously set temperatures, saving energy, and that a potential rental order for an Indonesian client's Thai factory is progressing.

Financial strain and management changes

The half-year loss widened to US$683,408 from about US$365,000, mainly because other income fell. Cash was US$192,789 and net Assets US$609,546, while operating cash outflow was US$388,895.

Funding has been costly. A secured A$454,000 facility announced on 2 June 2026 carries 18 per cent interest, and the rental fleet facility is also at 18 per cent.

The company expects the restructuring to cut costs by up to 50 per cent.

Risks and what to watch

The main risks are funding and execution. If the offer is not fully subscribed, the rental fleet may grow more slowly, and the company relies heavily on a single country, Indonesia, for sales. The Quarterly Report put funding at about 1.16 quarters. Resin prices, shipping disruption and rupiah weakness also affected the June quarter.

Key dates are the 20 October close and 28 October trading start, along with the next quarterly Cash Flow report, which should show how quickly rental placements are growing.