Ann: FY2019 Earnings Guidance, page-17

@madamswer - I think you should read again, ADA are not having a fight with the FAA they are taking to court the company which was handed the contract "Adysnc"

Regardless, I dont think this whole announcement passes the sniff test - did management only just realise the night before the AGM that this would have been the impact of losing the contract, which i add was well flagged to the market. The timing of this doesn't make sense and i would question management as to why only inform the market now.

Further, from what i can find this contract was only worth about 7m over a 5 year period (please correct me if i am wrong), unless there is some serious R&D expenses or larger fixed costs previously not expected, the math doesn't quite work. so is there a bigger flow on from loosing this one contract? was there more subsequently lost or are they not telling us the real number of this increase in costs?

Also, for management to be doing the buy back, they clearly (or not) did not expect this to be the result, which would be fair to assume unless management actually knew and thought a buy back and a special div would soften the blow - then that would be pretty unconscionable and in breach of directors duties for sure. 

i think there are more questions to be asked regarding the downgrade, but the only positive i can see is that earnings are now heavily skewed to the second half, implying they may know of new contracts or expecting to win further work. which taking the glass half full approach, given there is such a high operating leverage, any revenue gained should go back to the bottom line and this could be easily reversed. 

i think this is one to watch from this point on.