Orbital flags possible equity raising

24/05/2012 - 15:27

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Orbital flags possible equity raising

Orbital Corporation says it is evaluating its options with regards to a possible capital raising, after revealing its forecast loss this financial year would be larger than first thought, sinking to approximately $3 million.

Orbital put the increased loss down to poor performance by its Synerject division, with contraction in the Taiwanese scooter market not fully offset by improvements in the marine and recreational markets.

The Synerject division supplies liquefied petroleum gas fuel injection systems for use in small motors, such as scooters, jetskis or small boats.

Orbital said while Synerject remained profitable, its profit would be lower than the second half of last financial year, taking the group’s consolidated loss to around $3 million.

“In light of the reduced consulting services revenue in this reporting period, and the anticipated increase in sales with associated working capital requirements in FY2013, the Orbital board is reviewing capital management options,” Orbital said in a statement.

Also today, Orbital announced it had won a $4.7 million contract to supply engine systems for the US Navy’s unmanned aircraft.

Orbital will supply US-based AII Unmanned Aircraft Systems (AAI) with its FlexDI engine management system throughout 2012 under the deal.

“New ground had to be broken with AAI to meet their aggressive small unmanned aircraft system engine requirements, and we have been able to successfully develop and supply the demonstration engines from our Perth facility,” Orbital chief executive Terry Stinson said.

“This success now leads to production supply of engine systems.

“This is a good example of Australian innovation, and demonstrates Orbital’s engineering and product development capabilities.”

By close of trade today, Orbital shares were up nearly 2 per cent, trading at 27 cents. 

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