Billabong says its work to turn around the business is yet to improve its performance, as shareholders approved another aspect of its refinancing deal with two US investment firms.

A placement of $135 million in Billabong shares to Centerbridge and Oaktree was approved at a meeting on Thursday, as well as a $50 million rights issue.

Chairman, Ian Pollard, told the meeting approval from shareholders would give Billabong the financial flexibility it requires to continue with its turnaround.

But he also said the company still faces many hurdles, and the current year’s financial results would include more costs from restructuring the business.

“There remains much work to be done and few of the elements of the turnaround are as yet impacting on the company’s financial performance,” he said.

Billabong shares dropped 2.5 cents to 59.5 cents.

AAP