none
none

VIRGIN AUSTRALIA EXPECTS $30-$60 MILLION PROFIT AFTER LAUNCHING CAPITAL RAISING

06-07-2016
by 
in 
ABC News: Giulio Saggin

Virgin Australia has announced that it expects a year of profit between $30- $60 million as the airline increases its cost-cutting and launches a $852 million capital raising.

This would result in an increase of between $79-$109 million form the last period.

The results would not include the restructuring costs of between $90-$100 million, and between $155 and $175 million of balance sheet impairments associated with its "better business program".

The airline stated that the total charges are to be between $410 to $450 million for the full-year period.

Alongside the capital raising, $159 million would also be raised by a top-up share placement, bringing Virgin's total new equity to $1.01 billion.

Virigin said that the capital raising would be offered at of $0.21 per share, which is a 28.8 per cent discount to Virgin's closing price on June 14 of $0.295.

In June, Air New Zealand sold a majority of its stake in Virgin to Chinese conglomerate Nanshan Groupin a deal worth $232.6 million.

Related news & editorials

  1. Aussie dollar weaker
    09.01.2018
    09.01.2018
    by      In
    Business confidence in the manufacturing sector is at its highest level since June 2003, according the latest Business Expectations Survey from illion (formerly Dun & Bradstreet).
    “Manufacturing firms that were able to withstand the global financial crisis and the Australian dollar above parity... Read More
  2. 08.01.2018
    08.01.2018
    by      In
    It was supposed to have been the year when Australian manufacturing industry would dig in and somehow or other recover from the setbacks of the closures at Toyota and Holden. But 2017 turned out to be a year of expansion, according to the final figures from the Ai Group’s Australian Performance of... Read More
  3. Export growth
    15.12.2017
    15.12.2017
    by      In
    This week’s Australian Chamber-Westpac Survey of Industrial Trends for the December Quarter contained further good news for manufacturing industry, with continuing solid output, backlogs and new orders. And employment numbers and overtime are both expanding.
    Westpac Senior Economist Andrew Hanlan... Read More
  4. Building infrastructure certification
    13.12.2017
    13.12.2017
    by      In
    Test and certification specialist Bureau Veritas has expanded its footprint in Australia with the acquisition of a 65% equity stake in McKenzie Group Consulting.
    McKenzie Group is based in Sydney with additional operations in Brisbane, Melbourne and Gold Coast. The company offers a range of... Read More