Salary packaging company McMillan Shakespeare has broken its silence to the market after six weeks of refusing to talk to analysts, shareholders or the media.
But the company – whose share price fell 50 per cent in July following a Rudd government proposal to abolish tax breaks for employer-provided cars – has refused to give a profit guidance for the current financial year, saying it was still too early to give an outlook.
McMillan has been scathing of the Rudd government's proposal to get rid of the tax benefit which it relies on heavily for revenue – despite it never being enacted as a policy.
After opening at $12.34 this morning, shares in the company fell to as low as $12.10 before rebounding to reach a high of $12.63.
The proposed changes are now set to be reversed by the Coalition government, but despite this, McMillan chief executive Michael Kay said it was still too early to say when business would return to normal.
"We think Labor's announcement on the proposed taxes and air bubble created in our system is likely to have a material adverse effect on our remuneration services segment in FY14," he said.
"But due to a raft of uncertainties, we really have no present view about what that is going to be."
Mr Kay said investors would have to wait until the company's annual general meeting in October to be given a profit guidance.
"There are a lot of pluses and minuses, and we really don't have a clue. But we'll have a better idea come the AGM.
McMillan's revenue streams rely heavily on the near-three-decade-old tax break. The Rudd government had proposed to abolish the concession to pay for the shortfall left by scrapping the carbon tax.
Following the announcement, the company had asked the ASX if it could remain in a trading halt until after the election. But the ASX rejected the request, and McMillan shares fell more than 50 per cent.
It then took the unprecedented step of saying it would refuse to talk to analysts, shareholders or the media until the outcome of the federal election was known.
McMillan posted a net profit of $62.1 million for the year to June, up 14.5 per cent from a year earlier.
It told investors during a briefing this morning that regulatory risk was a permanent sensitivity to its business.
"Regulatory risk is a permanent one," Mr Kay said. "Some people will take view that regulation risk has increased, some will take the view that it has significantly decreased."
"I'll leave it up to market participants to form their view."