Spotless shares hit an all-time low after the cleaning and catering company signalled smaller dividends following a writedown-heavy $358 million half year loss.
The stock fell as much as 16 per cent as investors digested news of $391 million in impairments and a 12 per cent decline in underlying earnings.
Spotless, which is trying to shift away from small low-margin contracts, cut its interim dividend by nearly two thirds and lowered its future payout ratio from a range of 40 to 60 per cent of adjusted net profit, from the previous range of 65 per cent to 75 per cent.
The company forecast a full year net profit of between $80 million and $90 million, excluding one-off items, well down from the $122 million it made last financial year.
Spotless shares hit a low of 79.5 cents, a 68.5 per cent decline from a record high of $2.52 in April 2015.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
The shares were down 10.5 cents, or 11 per cent, at 84.5 cents at 1255 AEDT.
Chairman Garry Hounsell said the half year loss reflects the impact of contract losses in previous periods, margin pressure in some sectors, and increased depreciation from investment in prior years.
"It also includes costs associated with investment in business development, marketing and innovation," he said.
SPOTLESS CLEANED OUT
* Half year net loss of $358.1m v $48.1m profit
* Revenue down 9.4pct to $1.46b
* Interim dividend down 2.15 cents to 1.35 cents, unfranked
