View Full Version : Virgin Profit surprise
plainmaker
1st Dec 2021, 01:50
Virgin reports mega profit, creditors lose $4.4b (afr.com) (https://www.afr.com/companies/transport/virgin-s-enjoys-mega-profit-creditors-lose-4-4b-20211201-p59dot?utm_content=MAKING_NEWS&list_name=EBE726C6-38DF-4725-9BE4-5091999D8384&promote_channel=edmail&utm_campaign=the-brief&utm_medium=email&utm_source=newsletter&utm_term=2021-12-01&mbnr=MjA0OTM1OTc&instance=2021-12-01-12-45-AEDT&jobid=29349241).
Might be an interesting topic for subsequent EBA discussions. Fair bit of smoke and mirors in the result however.
Double_Clutch
1st Dec 2021, 02:03
Creative accounting much?
surely bonuses wouldn’t be linked accordingly - nah
As much as I’d like to see VA succeed as I have a lot of friends there, how do you turn a 4.4B profit considering since Bain has taken ownership Domestic borders have been closed for the majority and only all open in total for about 33 days.
1A_Please
1st Dec 2021, 03:24
It is largely a book entry as the liabilities that were written off through the administration are removed from the accounts. It has nothing to do with trading results and goes to show how a bit of sensational journalism can invoke a response. For those with an accounting bent, the general entries would have been Debit Creditors, Credit Negative expense (special account to capture the write-off). As VA no longer publishes accounts, they are not required to disclose much detail.publicly.
Double_Clutch
1st Dec 2021, 04:40
Writing down all their debt. Creative accounting and sensational reporting at its best. Let’s the bonuses flow thou
grrowler
1st Dec 2021, 04:55
I feel like it’s time for some bonuses, what do you think? Bonuses for everyone! Sorry not you, when I say everyone, I’m obviously referring to everyone that made it all happen - the executive team 👍
mostlytossas
1st Dec 2021, 05:40
This is what the Bain's of this world do. Buy something that is cheap and in trouble but has potential. Slash and burn to cut costs then dress it up with creative accounting and sell it. Should not surprise anyone. Give it time until some naïve cashed up buyer comes along.
Icarus2001
1st Dec 2021, 06:55
And in other news Australia has won the 2022 Ashes series against England. (After adjustments and write downs.)
What a load of twaddle.
MickG0105
1st Dec 2021, 08:35
$3.7 billion after-tax profit off of $1.5 billion in revenue. Quite the conjuring act.
At least it puts them on the path to paying tax sometime this decade.
AerialPerspective
1st Dec 2021, 14:20
Yep. From the same playbook that had the MRB when announcing yet another dismal loss, saying "but we're cash-flow-positive". Management-speak horse-sh-t.
Today’s Australian paints a completely different picture. New accounts filed with ASIC show that 205.4m claimed in JK for yr 2021 compared to 80.5m in 2020. Domestic passenger and freight revenue fell 2.6bn in 2020 to 983.3m, while international sales fell from 966.2m to just 8m.
airdualbleedfault
2nd Dec 2021, 05:10
Yep. From the same playbook that had the MRB when announcing yet another dismal loss, saying "but we're cash-flow-positive". Management-speak horse-sh-t.
I must be a bit slow, I could never work out where the millions of cash went, they seemed to magically disappear just after entering administration??