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. 08.05.2018
    08.05.2018
    by      In
    With noises from both sides of politics about company tax reform, this year could well be the last chance for small to medium manufacturing enterprises to take advantage of the ATO’s Instant Asset Write-Off Scheme.
    For the benefit of those who might have forgotten, the scheme, which was originally... Read More
  2. 08.05.2018
    08.05.2018
    by      In
    Australian manufacturing continued its run of growth in April 2018, with the Ai Group’s Performance of Manufacturing Index coming in at 58.3 for the month – a positive figure, albeit down 4.8 points from the all-time record set in March. The figures mark the 19th consecutive month of expanding or... Read More
  3. 08.05.2018
    08.05.2018
    by      In
    One of the most eagerly awaited sessions within the NMW 2018 conference will be a Case Study and Panel Discussion on “Supporting energy solutions”, which will be held in the Industry 4.0 Theatre at 2.40pm on Thursday 10th May and will be sponsored by Industry Update.
    The initiative for the session... Read More
  4. 07.05.2018
    07.05.2018
    by      In
    Even as Australia's manufacturing sector continues to reach new heights in expansion and consumer confidence, investigation shows that a significant proportion of manufacturers are heavily reliant on single key customers to stay in business. 
    The report, published by the Advanced Manufacturing... Read More