Regional Express Holdings Limited (Rex) has announced further profit growth for the half year to 31 December 2006.
In comparison with the first half of FY 2006, the Rex Group’s highlights include:
• Group revenue increased by 20.4% to $104.4m
• Passengers carried increased by 20.6% to 704,000
• Capacity (Available Seat per Kilometre) grew 13.6% to 384m
• Group profit after tax increased by 23.7% from $9.3m to $11.5m
• Net return on average total assets was 21.7%
• Cash holdings were $20m with no long term debts
Rex Executive Chairman, Lim Kim Hai, said that Rex had continued to improve despite the worsening drought conditions affecting much of regional Australia and continued high fuel expenses which were up 30% over the prior period.
“While the drought has had a major impact on families and businesses in many rural communities, the underlying strength and the diverse nature of Rex’s own network and activity has lessened considerably the impact,” Mr Lim said.
“Rex is continuing to work closely in partnership with the local communities we serve to bring the benefits of a quality service at very affordable fares. This approach of co-investment has resulted in more frequent services at lower fares to the benefit of the councils, its constituents and Rex.
“An example of the partnership approach has been the agreements between Rex and the communities of Grafton and Taree which were left without air services following the withdrawal of an operator in December 2006. Rex has stepped up to the plate and has commenced a new, vastly improved service from 25 February 2007.
“While the current operating environment remains challenging, Rex maintains its group net profit forecast of a 20% growth for this full Financial Year over the previous period.”
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