Web Travel Group Limited (ASX:WEB) Updates on Voluntary Suspension
Financial Restatement Overview
Web Travel Group Limited (ASX: WEB) announced a significant change in accounting standards impacting its financial position. The company will adopt AASB 9 (Financial Instruments) instead of AASB 137 (Provisions, Contingent Liabilities and Contingent Assets), affecting the recognition of supplier liabilities. This change will lead to adjustments in historical financial information.
Impact on Financial Metrics
The anticipated impacts include a $2.5 million increase in EBITDA for 1H25 and a $1.5 million reduction in overall EBITDA for FY24. The adjustments will result in a $1.5 million increase in 2H24 EBITDA and a $3 million decrease in 1H24 EBITDA. Additionally, retained earnings are expected to decrease by approximately $32 million as of 31 March 2023, and trade and other payables will increase by about $32 million as of 30 September 2024. These changes are non-cash and reflect timing differences.
Trading Suspension and Forward Outlook
A trading halt was requested after the company became aware of the material impact on share performance. However, subsequent evaluations indicated that the adjustments would not materially affect the company’s overall earnings or financial position. Shares are expected to resume trading shortly, and the company’s 1H25 results are slated for release on 27 November 2024.
Executive Comments
“We are focused on ensuring compliance with accounting standards and providing our investors with transparency,” said the Board of Directors. An investor conference call is scheduled for 9:30 am AEDT on 21 November 2024 to discuss the restatement details and outcomes. Participants are encouraged to pre-register for the call.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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