More consolidation in the pipeline for CTI Logistics, company says
CTI Logistics has recorded a net profit after tax of $4 million for the 2017-18 financial year, saying it has been achieved through a combination of acquisitions and east coast expansions.
The company’s overall profit figure is sitting 32 per cent lower than the $6 million recorded in 2016-17, due to the company having earned $2.8 million that year from the sale of non-core properties.
Excluding the one-off earnings, CTI says its 2017-18 net profit before tax was $3.8 million, up 17.9 per cent on the $3.2 million generated previous year.
CTI also generated revenue of $182.9 million in 2017-18, up 18.4 per cent on the previous year.
“We have just leased a purpose-built freight depot in Forrestfield to house and consolidate all of our WA regional freight operations, plus our interstate Jayde Transport operations acquired in November 2017,” company chairman David Watson tells shareholders.
CTI spent $6.5 million at settlement to acquire Jayde, which had depots in Perth, Adelaide and Melbourne, as well as a deferred payment of $1 million in April and contingent spending of up to $2.85 million by February 2019.
“We are continuing to develop the interstate transport network, and now have bases and scheduled services to and from all mainland capitals.
“Alongside this, we are expanding our east coast warehousing and distribution capability to serve national clients.”
CTI further announced in late May it would acquire WA-based Stirling Freight Express.
Read our story about the Stirling Freight acquisition here
Wilson says prevailing economic conditions in WA continue to put pressure on client volumes and margins, which sometimes required one-off or short-term extra costs to get over.
“We are working hard to offset these costs by consolidation of freight depots in Perth, Bunbury, Albany and Adelaide and by significant fleet synergies made possible by this consolidation,” he states.
“We are also exiting two leased warehouses, in Malaga in October and in Carlisle in December, and consolidating that activity at our owned premises in Hazelmere.”
In the year ahead, CTI says it will continue to explore new opportunities for potential acquisitions in WA and across the nation in fields related to its existing core operations.
It will also look to expand its operations in the east coast through existing and new facilities, it says – with a new Jayde Transport depot to open in Brisbane in late September.