Revenue growth a positive however obstacles to bottom line remain
Listed transport firm CTI Logistics has told shareholders it expects to report a profit before tax of $4 million for the recently completed financial year as it navigates through challenging economic conditions and expansion costs.
This compares to the $6.1m reported at the corresponding period last year after subtracting the profit on sale of non-core property.
CTI says its profit figure comes after adding back the contingent consideration of $2.34 million relating to the purchase of Jayde Transport.
Earnings before interest, tax, depreciation and amortisation (EDITBA) for the year is projected to be $14.9 million on turnover of $211.9 (including acquisitions) compared to $16 million on $182.9 million the year before.
CTI flagged its profit dip earlier in the year
Company secretary Owen Venter notes the results for the second half up to June 30, 2019, produced a marginal profit, significantly below the previous corresponding period.
He points to significant diversification and consolidation as contributed to costs, along with a stuttering Western Australian economy.
“Results have been impacted by the state of the economy, particularly in Western Australia, with significant reduction in activity and increase margin pressure across a wide range of clients along with continued investment in growing our WA regional freight operations and the previously reported impact of expansion costs in the operations in Melbourne, Sydney in Brisbane,” Venter says.