Blue Sky in the red in H1

Blue Sky in the red in H1

Restructuring costs, valuation cuts and reimbursements have taken their toll on Blue Sky Alternative Investments' (ASX: BLA) bottom line, with the embattled fund manager anticipating a loss of between $28-32 million for the first half of FY18.

And if it weren't for a $50 million convertible note facility from its saviour partners at Oaktree Capital Management, the cash position would be just shy of $5 million.

In an announcement to the ASX this morning, the Brisbane-based group announced a cash position of $54.8 million, compared to $40 million at the end of June last year.

"The primary drivers of the cash position relate to abnormal expenses, restructuring expenses, fund expense recovery repayments and further working capital loans, investments and co-investments of aligned capital and institutional investors in real assets and a US energy storage investment," the company said.

Restructuring costs were estimated to have cost around $8 million, while BLA also took a $14 million hit in valuation adjustments and recommended impairments to working capital loans.

The only positive impact on its performance, of around $2.5 million, came from the reversal of employee share option expenses resulting from staff terminations. 

The group noted a significant reduction in annual expenses, representing "strong progress" towards Blue Sky's target of keeping fixed cost in line with recurring management fee revenues.

The Brisbane-based company anticipates net tangible assets (NTA) of $102-106 million as at 31 December 2018.

More here:

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Get our daily business news

Sign up to our free email news updates.

Please tick to verify that you are not a robot

 

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Australian Millennial managers look to offshoring to solve global talent shortage problem
Partner Content
New research reveals that more than half of Australia’s next-gen leaders are cons...
Cloudstaff
Advertisement

Related Stories

Purpose Ventures secures $37m to support WA startups

Purpose Ventures secures $37m to support WA startups

A new venture capital firm (VC) focused on backing early-stage West...

JobAdder to capitalise on surge in temp jobs after capital injection from SEEK

JobAdder to capitalise on surge in temp jobs after capital injection from SEEK

Sydney-based recruitment-software platform JobAdder is aiming to ca...

Gold Coast council gives green light to controversial luxury apartment project at Currumbin

Gold Coast council gives green light to controversial luxury apartment project at Currumbin

Sydney developer Arena Property Group has secured final council app...

Latitude reveals nearly 8 million drivers licence numbers were stolen in cyber attack

Latitude reveals nearly 8 million drivers licence numbers were stolen in cyber attack

The fallout from a cyber attack on personal loans firm Latitude (AS...