Orbital shelves capital raising plan

Perth-based Orbital Corporation has announced it is not going ahead with a proposed acquisition of a complementary business in the alternative fuels system sector.

In a statement Orbital said the company's board had made the decision to withdraw its proposed capital raising as a result of volatile conditions on global equity markets.

The board said it would not have been in the interest in shareholders.

"While we felt the acquisition represented a strong strategic fit for Orbital, the prevailing market conditions meant the timing was not conducive to completing the capital raising on a satisfactory basis," said Orbital chairman Peter Day.

Orbital CEO Terry Stinson said the withdrawal of the capital raising and acquisition was unfortunate but that the company would continue to develop its existing business and investigate opportunities to grow the group in line with its stated growth strategy.

"In the near term, Orbital will be focusing on generating an operating profit in FY11 along with positive cash flow from our existing business streams," said Mr Stinson.