Embattled Penrice looks to brighter future
At its June 30 balance date, liabilities exceeded assets by $46.6 million, resulting in its auditors Ernst & Young qualifying its accounts for the second year due to "material uncertainty ... about the ... group's ability to continue as going concerns", it said in the annual report.
Chairman David Trebeck told shareholders at Tuesday's annual meeting that liquidity remained tight and that a debt restructure was being negotiated.
Penrice has $110 million of debt on its balance sheet, and $127.5 million of accumulated losses.
Negative cashflow continued during the first quarter due largely to final restructuring costs.
The strong Australian dollar, weak demand and product prices forced the group to close its soda ash plant and shift to imports.
Its future now hinges on developing the quicklime market and securing "viable contracts " for the output as well as renegotiating its debt and recapitalising the business.
The net loss fell to $50.1 million from $63.5 million.
Frequently Asked Questions about this Article…
Penrice Soda has faced significant financial challenges, including $140 million in losses over the past three years, liabilities exceeding assets by $46.6 million, and $110 million of debt on its balance sheet.
Penrice Soda is working on a debt restructure and is focusing on developing the quicklime market. The company aims to secure viable contracts for its output and recapitalize the business to improve its financial standing.
The strong Australian dollar, along with weak demand and product prices, forced Penrice Soda to close its soda ash plant and shift to importing products.
Penrice Soda's cash flow has been negative, particularly during the first quarter, due to final restructuring costs. However, the company is confident that its cash flow situation is improving.
Penrice Soda's future success hinges on developing the quicklime market, securing viable contracts, renegotiating its debt, and recapitalizing the business.
Penrice Soda's net loss has decreased from $63.5 million to $50.1 million, indicating some improvement in its financial performance.
Auditors Ernst & Young qualified Penrice Soda's accounts for the second year due to material uncertainty about the group's ability to continue as a going concern.
Penrice Soda is negotiating a debt restructure to address its liquidity issues, as liquidity remains tight according to Chairman David Trebeck.
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