CTI Logistics continues trend of pleasing results


The half-yearly reporting season’s run of promising news in the transport and logistics sector continues with CTI Logistics reporting profits up compared with the previous first half. The Perth-based firm, which also has a plastics manufacturing arm, recorded a 7.26 percent rise in net profits to December of $3.9 million, with revenues up 21.4 percent to $45.35 million.

By Rob McKay | March 2, 2012

The half-yearly reporting season’s run of promising news in the transport and logistics sector continues with CTI Logistics reporting profits up compared with the previous first half.

The Perth-based firm, which also has a plastics manufacturing arm, recorded a 7.26 percent rise in net profits to December to $3.9 million, with revenues up 21.4 percent to $45.35 million.

"The increase in revenue in the logistics and transport segment is primarily reflected in the acquisition of Action Courier and the continued development and ramping up of the minerals and energy sector," Joint Managing Director and Company Secretary David Mellor says.

CTI reiterated its business plan objectives of expansion through "aggressive marketing and by acquisition" and business formation in "fields related to or compatible with the group’s existing core operations".

Executive chairman David Watson echoes the message, saying: "We plan to grow the company both organically and by acquisition.

"As part of the overall planned growth process, to encourage greater liquidity in the company’s shares, and also in recognition that we are now in our 25th year as a public listed company, the directors have resolved to declare a one-for-five bonus share issue."

Logistics and transport garnered profits before tax of $5.38 million, up from the previous half’s $4.7 million, with revenues risinng from $31.3 million to $39.6 million.

As with other listed transport firms, CTI’s subcontractor costs rose, in its case from $13.7 million in the previous half to $17 million.

Vehicle and transportation costs were also up, from $2.4 2million to $3.36 million

CTI spent $3.75 million on buying the Action Couriers and Taxi Truck company.

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