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. 07.09.2018
    07.09.2018
    by      In
    Fifteen companies from Victoria and South Australia have been named as recipients of almost $19 million worth of grants under the second and final phase of the government’s Advanced Manufacturing Growth Fund.
    The $47.5 million fund was set up in the 2017-18 Budget as part of a $100 million package... Read More
  2. 03.09.2018
    03.09.2018
    by      In
    Australian manufacturing continued its inexorable march forward during August, with the Ai Group’s Australian PMI rising back into high growth territory at 56.7 – up from July’s 52.0, which had suggested that growth was slowing. The August figure marks the 23rd consecutive month of expansion.... Read More
  3. 01.08.2018
    01.08.2018
    by      In
    The sustained growth of Australian manufacturing industry slackened off in July with the Ai Group’s Australian PMI dropping to 52.0 – down from 57.4 9 in June and further down from its high point of 63.1 in March 2018.
    However, the sector continues to grow, albeit at a slower rate, and the July... Read More
  4. 11.07.2018
    11.07.2018
    by      In
    “The National Electricity Market is largely broken and needs to be reset,” said ACCC Chair Rod Sims in launching the final report of the Australian Competition & Consumer Commission’s Retail Electricity Pricing Inquiry.
    Sims went on to acknowledge that: “Previous approaches to policy,... Read More