Range of one-off costs sees bottom line figure mask hefty revenue rise
Freight transport and warehousing firm CTI Logistics has recorded a 73 per cent first-half net profit fall compared with the previous first half, even as revenue rose 27.3 per cent.
Revenues rose from $88 million to $112 million while net profit fell from $3.3 million to $913,645.
The villains are hangovers from acquisitions, property policy moves and trading headwinds.
These include:
- purchase, through subsidiary CTI Freight Management, of Jayde Transport’s interstate transport and logistics business for $7.5 million
- the $4.5 million spent buying Western Australian regional carrier trading as Stirling Freight Express
- Melbourne, Sydney and Brisbane expansion costs
- consolidation of WA regional freight operations
- transfer of warehouse operations from a leased to an owned premises
- challenging trading conditions in December.
Even so, purchases are still on its agenda.
“We are also looking at several opportunities for expansion and growth throughout Australia,” CTI says.
Read how the Jayde business purchase helped
Costs rose, some more than others.
Employee benefits were up from $29 million to $36 million, as were subcontractor costs from $24 million to $35 million and vehicle and transport from $12 million to $15 million.
Property, plant and equipment purchases rose from $1 million to $2.75 million.
Of the business segments, Transport saw revenues rise from $42 million to $64 million as profit before tax fell from $2.2 million to $1.5 million. Logistics revenue rose from $43 million to $45 million and profits before tax fell from $3.2 million to $1.8 million.
Property, plant and equipment purchases rose from $1 million to $2.75 million.