Trailer Magazine

CTI Logistics anticipates profit amid economic challenges

  • Posted on Tuesday 13th, August 2019.

Transport company, CTI Logistics, expects to report a profit before tax of approximately $4 million for the year ended 30 June 2019.

This estimate includes adding back the contingent consideration of $2.34 million relating to the purchase of Jayde Transport and compares to $6.1 million in the previous corresponding period after subtracting the profit on sale of non-core property of $0.3 million.

Excluding adjustments, earnings before interest, tax, depreciation and amortisation (EBITDA) for the year ended 30 June 2019 is expected to be $14.9 million on revenue of $211.9 million (including acquisitions) compared to $16 million on revenue of $182.9 million in the prior corresponding period.

“The results for the second half to 30 June 2019 have produced a marginal profit and are significantly below that of the corresponding period,” CTI Logistics Company Secretary, Owen Venter, said in a ASX trading update.

“The results have been impacted by the state of the economy, particularly in Western Australia, with significant reductions in activity and increased margin pressure across a wide range of clients, along with the continued investment in growing our Western Australian regional freight operations and the previously reported impact of expansion costs in the operations in Melbourne, Sydney and Brisbane,” he said.

CTI Logistics is due to release full year financial results later this month.

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