Posted on: 24 August 2016 by Mark Howells
The Regional Express (Rex) Group has announced a statutory loss after tax of AUS$9.6 million for the full financial year of 2016 (FY15/16) following a $15M impairment of goodwill and assets.
The company’s goodwill impairment amounted to $6.6 million, while its asset impairment for FY 15/16 stood at $8.4 million, creating a tax impact of $2.5 million.
Rex reported an operating profit before tax of $4.3 million in comparison to $9.3 million the previous year, with operating profit after tax decreasing to $3 million, down from $6.7 million year-over-year. The $4.3 million operating profit before tax was achieved on a turnover of $261.9M.
In comparison, Rex declared a profit after tax of $6.7 for the full financial year of 2015. The airline’s COO, Neville Howell, commented, “The Group had to make some non-cash write-downs due to the cessation of a defence contract which resulted in the first full-year statutory loss Rex has reported since FY02/03.
“The new Western Australian routes which began on 28 February 2016 are expected to contribute 9% of Rex’s total passengers in FY17. This together with the reduced fuel costs from hedging initiatives should see Rex post better results in FY17,” Howell concluded.