Range International Limited (ASX:RAN) makes recycled plastic pallets in Indonesia. Its interim report for the half-year to 30 June 2026, dated 31 August 2026, also carries a material uncertainty about Going Concern flagged by the auditor.

What the company does

Range manufactures pallets from recycled plastic using what it calls ThermoFusion technology, branded Re>Pal, at a factory in East Java. The pallets are sold outright or rented, and are supplied in Indonesia and across Asia Pacific. In its chairman's address to the Annual General Meeting on 25 May 2026, the company said 2025 delivered record sales and a broader customer base, with about four million kilograms of plastic waste converted into pallets.

Half-year figures

Interim Revenue rose 11 per cent to US$1.037 million from US$931,000, and Gross Profit rose 25 per cent to US$258,000, lifting gross Margin to about 25 per cent from 22 per cent. The statutory loss after tax widened to US$683,000 from US$365,000, although the company notes the prior period benefited from non-recurring other income, such as asset disposal income and a tax provision reversal.

Operationally, the company delivered 71,322 pallets in the half, and rental contracts covered 11,444 pallets at 30 June. It reports that Indonesian domestic sales, excluding one customer group, roughly doubled, and that its Indonesian Business achieved a 35 per cent gross margin in the second quarter. The new factory is described as fully operational. These are company statements; the report adds that the group has not yet reached sustainable cash break-even.

Cash, funding and going concern

Cash closed the half at US$193,000, down from US$213,000 at 31 December 2025, after net operating cash outflow of US$389,000. The auditor's conclusion is not modified, but the report flags a material uncertainty about the group's ability to continue as a going concern. Management's plans include Equity raising, meeting sales and Cash Flow targets, improving margins, controlling costs and seeking external Debt or asset sales.

Funding comes mainly from debt. On 3 June 2026 the company announced a secured Loan Facility of A$454,000, with 18 per cent annual interest and security over rental pallets and equipment; the interim report describes an investor facility capped at US$616,590 on similar terms. Directors and senior management also provide an unsecured A$575,000 facility at 14 per cent, of which A$300,000 had been drawn, expiring on 24 December 2026. The company says it is in talks with a large foreign bank about a bigger, cheaper facility and may need additional equity, which would dilute shareholders.

Sector context and risks

Range's thesis is that renting pallets creates Recurring Revenue and better margins, but that requires funding to build a rental fleet before the cash comes back.

Specific risks include the going-concern uncertainty, high-cost secured debt, the December 2026 expiry of the directors' facility, reliance on a single Indonesian factory, and the unproven scale of rental demand. A planned Philippines operation was still targeted in May but, according to the chairman, no suitable partner had been secured. Share data should also be read carefully: a 2026 substantial-holder notice refers to a post-consolidation share count, and the details of the consolidation were not verified.