Shares in Silverjet were flying sky-high today hitting 21.00p, following the news that the company has received a takeover bid. But since our last coverage on business class only airline company stock sank almost 50%.The year of 2007 had been a real nightmare for the group as its shares plummeted around 90%.
On a report dated November 23, 2007 the group said
that in the six months ended 30 September 2007, the Silverjet incurred a loss before taxation of £13.1 million (year ended 1 March 2007: £19.2 million, six months ended 30 September 2006: £1.1 million) on revenue of £30.6 million year ended 31 March 2007: £12.8 million, six months ended 30 September 2006: £nil million). This loss included £1.0 million in respect of losses incurred by the Group’s Flyjet charter airline business. The loss before taxation also included £0.2 million of costs relating to the major maintenance work to Silverjet’s first Boeing 767 and the resultant delay in the launch of its second service.
At the beginning of 2008, a broker Daniel Stewart said the airliner would face hard times without a further injection of equity. Given the lack of demand for investing in speculative struggling airlines, this equity may be hard to come by.
Silverjet was running behind its initial profit estimates and expansion schedule.
Silverjet badly needs fresh cash injection. Takeover talks might not take that long to reach the final consensus. The time is ticking, which means the faster both sides put their signatures on papers, the better it would for Silverjet.
Reference
www.flysilverjet.com
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