Anyone also on the same page that FLT would require another capital raising soon? Below are some of personal thoughts about their financial situation:
1) Job Keeper scheme is ending - State and Federal Government is unlikely to continue support companies who are still struggling paying their wages.
2) Voucher scheme is likely to be challenged by the ex-travelers (Those who don't know FLT issues credit vouchers for the money paid for their travel bookings instead of issuing a full refund - and voucher only last for 1 year - Which is unlikely to be redeemable in 2021 again.
3) International travelling is unlikely to be opened in 2021 - This hurts even more given FLT operates more in Asia / North America region.
4) Majority of retail stores are now opened and some employees are back during non-travelling period - meaning significant increase in rental / utilities bills / wage expenses but without much revenues being generated.
5) Estimated $3.1 billion being paid in 2020 for employee wages, suppliers, leased liabilities & repayment of borrowings, whilst company only have $1.8 billion cash in hand (with $700m from capital raising and $400m from borrowings).
6) FY 2020-2021 revenue will probably seeing 40-50% reduction (IMO) - down from $2.8b to $1.4b while incurring higher expenses.
Anyhow just like to share some of my thoughts as most of my friends have been on FLT when SP hitting $18 and vaccine / international travelling seems very promising but now refusing to sell at 20%+ losses. Only wondering if FLT would be able to survive this FY..
FLT Price at posting:
$14.14 Sentiment: Sell Disclosure: Not Held
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