Rex Announces FY18/19 Full Year Results

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Rex Announces FY18/19 Full Year Results

The Regional Express (Rex) Group today announced a statutory Profit After Tax (PAT) of $17.5 million (M) on a turnover of $317.6M for Financial Year 2019 (FY19). This represents a 3.6% improvement in PAT on the back of a 7.5% improvement in revenue over the previous FY.

Rex Executive Chairman Lim Kim Hai said, "The global economic climate has deteriorated significantly since United States escalated the trade war with China in November last year. Australia is not spared and its economic growth slowed to a decade low of 0.4% in the third quarter of the FY with the FY's (already revised downwards) outlook of 1.8% appearing to be unachievable."

"In this harsh environment with Qantas reporting a PAT decline of 6.5% with Virgin Australia expecting to again announce significant losses, I am pleased that Rex is still able to maintain the same level of profitability as the prior FY with the strong momentum of the first half just about balancing the downward pressures of the second half."

"In line with the global economic outlook and the possibility of a technical recession in Australia, the Board expects its profit will reduce by 15 to 20% in FY20 but remains confident that Rex's strong foundation, highly efficient operations and almost no debt will see the Company through these turbulent conditions."

In light of Rex's current strong cash position and the expected strong cash flow in the coming year, the Board has approved a fully franked Final Dividend of 8.0 cents per share making the total FY19 dividend payout of 12.0 cents per share."

Regional Express (Rex) is Australia's largest independent regional airline operating a fleet of more than 50 Saab 340 aircraft on some 1,500 weekly flights to 60 destinations throughout all states in Australia. In addition to the regional airline Regional Express, the Rex Group comprises wholly owned subsidiaries Pel-Air Aviation (air freight and charter operator) and the Australian Airline Pilot Academy.

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This press release was sourced from Regional Express (Rex) on 23-Aug-2019.