Ann: Rex Issues New Profit Guidance, page-3

I previously forecast based on the HY17 that PAT for FY17 could be between $8-$12 million (http://chasingvalue.com.au/?p=333).

The announcement noted that the FY17 profit after tax (PAT) will be 2.5x the FY16 profit. Operating PAT for FY16 was $5.4 million ignoring impairments. So this would mean that the full year PAT for FY17 will be circa $13.5 million which exceeds my earlier forecast. It would be interesting to see whether the RPT in traditional network has increased.

A dividend payout ratio of 50% would be great for the share price. $7 million dividend would mean around 6% fully franked dividend yield, not bad with cash rate at 1.5%.

I think we all have been very patient with Rex, hopefully this patience pays off