CTI Logistics vows to battle the slow-down
Company holds the profit line but will seek to grow aggressively
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CTI refuses to be cowed
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CTI Logistics has pledged to battle the market elements after this year’s net profits at the same level as last year, its annual report shows.
At $9.8 million, the year’s performance underlines a shift in market sentiment, due to the end of the mining boom, about the previously bullish company that has had a history of double-digit growth.
That said, the company still managed an 11.1 per cent rise in revenue from operations to $140 million
But reportable profits before income tax in the transport arm fell from $8.5 million to $4.7 million while that for the logistics operations fell from $6 million to $5.7 million.
Helping hold the line was the property arm, which more than doubled its profits before tax from $2 million to $4.4 million.
"Increased pressure on margins as a result of continuing tough market conditions that have affected all business in the group," the company says of a year that was full of gains and setbacks.
These were:
- additional costs of $1.98 million incurred and related to the on-going development of a regional road freight network in Western Australia
- completion of the second stage of its Hazelmere warehousing and distribution complex and a full year of first-stage warehousing revenue
- a decline in courier and resources-related activities offset by organic growth in our truck and parcels businesses
- the sale of investment property for a $2.9 million profit and an impairment of $1.6 million on two other investment properties.
Management’s answer for the coming financial year is to go on the front foot with an expansion of existing freight and warehousing operations "by aggressive marketing and acquisition", forming or buying businesses in related or comparative fields and keeping a close eye on costs.
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