MELBOURNE: Beyond Sportswear International (BSI) is hoping a rights issue will see it through the worst of the economic doldrums.
Announcing the move in a statement to the Australian Stock Exchance today, March 5, the sportswear specialist - whose stable includes the Kea and Kombat labels - confirmed a substantially underwritten, non-renounceable pro rata rights issue to shareholders with a view to raising approximately $3.2 million before costs.
Proceeds from the offer would be used to retire short term debt, strengthen the company's balance sheet and provide funding to take advantage of growth opportunities for organic expansion and acquisitions.
"BSI's balance sheet will be improved as a result of the Rights Issue at a time of considerable uncertainty in the global economy," the statement said.
The move follows BSI's announcement late last month of profit before income and tax (PBIT) of $1,698,000 for the six months ending December 31 2008, compared to $1,062,000 in the previous corresponding period.
Sales for the period had dropped to $15,925,000 however, compared to $17,909 for the previous corresponding half. The company had been adversely impacted by performance of events and licenses that it had since not renewed, exited, or decided to exit by June 2009. These inlcuded SuperLeague (Europe), Hummel, Women's Soccer, Suncorp Stadium, World Cup Rugby and Cricket.