You guys Should all be ashamed of your selfs , instilling unwarranted fear, trying to get people to sell the shares so you can all move in for the 5 plus hike. Disgraceful behaviour and so transparent.
So spare me your BS : short term profits do not matter, this company is well equipped, liquid and positively geared and well positioned not only to take on the industry to but to come a long term major player. Now that QAN will trim down, they may even look to WEB JET to handle the booking component of there business.
Read below and STOP the Virus which is you the shorter, the down rampers and the disgraceful fear mongers for huge profits.
Management has implemented interim business initiatives to mitigate the near-term financial impact,
including:
• Reduced Board and Executive remuneration, with the Managing Director reducing his
salary by 60% for calendar year 2020 and receiving no bonus for FY20
• Deferral of Webjet’s $12.2 million interim 1H20 dividend payment to be reviewed in October
2020
• Total redundancies of 440+
• Majority of remaining staff moving to 4 working days per week
• Renegotiation of certain operational and technology contracts
• Essential capex only (planned ERP capex program delayed)
• All non-essential spend freeze (including travel, hiring, consultants, contractors etc.)
• Material decline in transactional and operational expenses tied to TTV
• No current marketing spend
• Closure of Online Republic Cruise and suspension of Webjet Exclusives
The above initiatives are expected to result in cash flow savings of c.$13 million per month, with
further cost reduction initiatives available under a significantly prolonged scenario which Webjet
anticipates implementing in the event circumstances do not improve over the next 6 months.
Proceeds from the capital raising will be used to strengthen Webjet’s balance sheet, with net debt
reduced from $135 million to a net cash position of $140 million. This provides Webjet with pro forma
available liquidity of $470 million as at 29 February 2020 based on unaudited management
accounts1
including undrawn revolving credit facilities, which is expected to represent sufficient
liquidity to the end of 2020, even assuming severe travel restrictions continue.
Prior to COVID-19, WebBeds was the fastest growing and second largest B2B player in the world
and tracking ahead of its 8/4/4/ profitability target.2 Webjet believes the severe financial pressure on
smaller players and the industry will likely see a significant change in the competitive landscape
once the impact of COVID-19 passes. This may provide an opportunity for WebBeds to gain market
share as competitors come under financial strain. Once the impact of COVID-19 passes, WebBeds
will also be well positioned to resume its focus on its 8/4/4 profitability target.
Expand
(20min delay)