Regional Express (Rex) has left a sour taste in the mouths of shareholders after revising its profit guidance for the 2020 financial year.
In a statement issued via the ASX last week, Rex said its board now expects a reduction in profit of between 20 and 30 per cent in FY20, after reviewing its results for the first for months of the fiscal year.
Rex’s board has also decided against paying an interim dividend due to the group’s capital commitments and the “uncertain” global economic outlook.
“However, the board remains committed to a final dividend for FY20 payout should conditions not deteriorate any further,” the company added.
Rex’s share price fell from $1.31 to as low as to as low as $1.15 immediately after the announcement, but has recovered slightly since to close at $1.21 yesterday.
The dour profit guidance update wasn’t exactly a surprise either, with Rex having warned shareholders that FY20 wouldn’t be so rosy in announcing its FY19 results in August.