CTI sees transport hold up as accounting rule spills red ink


AASB 16 reform mars otherwise steady performance in face of pandemic

CTI sees transport hold up as accounting rule spills red ink
CTI's transport operations performed well in tough circumstances

 

The Australian Accounting Standards Board leases reform, AASB 16, continues to roil bottom-line numbers for listed companies in the transport space, with CTI Logistics the latest to see its annual results affected.

The Perth-headquartered firm recorded a net loss of $4.35 million, having recorded an impairment of properties of $5.77 million in the past financial year and a $2.34 million contingent consideration for the previous year.

This came despite a 1.5 per cent revenue rise to $215.2 million, in the face of unique national challenges.

"The results for the year continue to be impacted by the state of the economy, particularly as a result of Covid-19 for the second half of the year, with a contraction of the national economy resulting in reductions in activity and margin pressure across a wide range of customers," the company states.

"Interstate freight was further impacted by natural disaster on the east coast including lower volumes and higher associated costs to maintain service levels, as well as relocation of two transport depots in Perth and Melbourne.

"[Flooring logistics subsidiary] GMK was impacted by the implementation of a new transport management system and this has resulted in increased costs during the year with future years expected to see the benefit of improve systems and performance."


Read how the market was softening for CTI this time last year, here


While regional and interstate general freight generally maintained revenue, the group’s warehouses, couriers and security businesses saw lower revenues due to the pandemic – the latter enabling them to gain $561,000 in JobKeeper cash. 

Operational cost changes were quite modest.

Vehicle and transport costs fell some $500,000 to $26.7 million, with employee benefits and subcontractor expenses rose $1.2 million to $71.4 million and $2.8 million to $71.2 million respectively.

The transport segment reported a revenue rise of $7.8 million to $144.5 million, with a profit before tax up a little less than $2 million to $3.9 million.

The logistics arm saw revenue fall $2.3 million to $82.1 million, with before-tax profit down to $198,685 from $1.93 million the previous year.

 

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