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Final result out this morning. LSE always slow on this!
cash balance at the year-end of US$3.6m. oh dear!
The group reported a loss after tax of US$48.0m (2015: loss after tax US$21.9m) on revenues up 5% at US$68.5m (2015: US$65.1m). It said the results in large part reflected decisions in early 2015 to introduce too many new routes, expand the fleet and deploy capacity beyond market demand. fastjet said its stabilisation plan was addressing these issues and although benefits were already being realised, primarily in cost reduction, the full benefit would only be seen as it progressed through the new financial year.
As a result of the operating loss for the year the group incurred a significant operating cash outflow which resulted in a cash balance at the year-end of US$3.6m (2015: US$28.9m). Chief executive Nico Bezuidenhout said: "2016 was a challenging year and these financial results reflect not only a difficult market place but also the overly optimistic expansion plan adopted in early 2015. "Since I became CEO on 1 August 2016 we have successfully initiated a Stabilisation Plan to address the immediate challenges. "However, although good progress has been made many of the Plan's benefits to reduce our cost base, and match capacity with demand, have naturally taken time to feed through and as such will only be materially realised in 2017. "Nevertheless, the effects of the Stabilisation Plan in the second half of 2016 saw fastjet withdraw from a number of loss-making routes and remove surplus capacity such that while between July and December, capacity was reduced by 25%, passenger numbers were only down by 3% and revenues rose by 5%. "The final stages of the Stabilisation Plan are now implemented and the strong progress we have made means that fastjet's cost base will be significantly reduced by the third quarter of 2017 and that we are well on the way to fulfilling our baseline aim of achieving a cash flow break even position by the fourth quarter of 2017. "Since the year-end, fastjet has completed a US$28.8m fundraising, entered into a strategic and operational partnership with Solenta, and significantly strengthened our Board. "With these initiatives building on the benefits of the Stabilisation Plan, and although a number of challenges remain, fastjet is now close to being sufficiently stable and well positioned to be able to consider disciplined growth opportunities in our target African markets."
Cash burn for the the first months not good. Extra plane going both to Zimbabwe(E145) and two E190s to Tanzania one returned (A319) They state there is enough cash until June 2018 but little headroom Unbelievable mess
Cash flow very tight Gatwick lease ends in August A319s to be returned by October but at a cost New fleet 2x E145 wet lease 2 x E190 dry lease Emirates connection now working $10 million loan to be repaid over 10years dating back to Fly540 October 2017 cash flow at highest stress
The Loan note must be priority to reschedule. If they don't help by agreeing they will never get paid
For those that are still holders I think you are in luck that there doesn't appear to be much of a market for FJET shares as in any 'normal' market these results, and some of the things that shylock points out, would be really bad news for the SP. September / October is definitely crunch time and will show whether or not the Grey Bird has any future (though my guess is if it does beyond this point it will require yet more shareholder cash / dilution, and I'm not sure there'll be much of an appetite for either). Good luck all....