CTI eyes improvements after first-half dip


Modest first-half profit reported but growth initiatives pinpointed

CTI eyes improvements after first-half dip
A recent CTI fleet addition

 

Western Australia’s CTI Logistics has outlined operations, facilities and tech initiatives to help it push past challenging conditions, particularly in its home state.

Its interim results show revenue from operations was down 1.8 per cent over the prior corresponding period (pcp) to $109.8 million, with profit before tax at $1.24 million, down from $1.75 million over the pcp, accounting for new AASB 16 Leases standards.

The profit before tax excluding AASB 16 was $1.5 milion, down 63 per cent on the pcp ($4.09 million after excluding contingent consideration relating to the Jayde Transport acquisition of $2.34 million).

CTI also lists its earnings before interest, taxes, depreciation and amortisation (EBITDA) for the half year as $6.94 million, down 29 per cent on the pcp.

"The results for the period continue to be impacted by the state of the economy, particularly in Western Australia, with reductions in activity and margin pressure across a wide range of customers," the company says.

"Interstate freight was further impacted by natural disasters on the east coast, including lower volumes and higher associated costs to maintain service levels."


CTI's recent acquisitions growth hit its profits recently


In response, CTI says it is focusing on cost reduction and productivity initiatives to improve margins, eyeing opportunities in facilities and technology improvements.

"During the period, the company has invested in growing our national freight operations in Melbourne, Sydney and Brisbane, including the relocation of two transport depots in Perth and Melbourne, as well as investing in information technology at GMK (specialised flooring logistics) and warehousing divisions to enhance our operating systems and performance."

The firm remains optimistic its course of action should lead to future returns.

"Cash flow has been directed to targeted business investment and debt reduction following recent acquisitions," it says.

"Although current market conditions have been challenging, the company continues to generate strong cash flow and is poised to take advantage of and benefit from any uplift in the economy."

 

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