Trailer Magazine

CTI Logistics profits from acquisitions

  • Posted on Sunday 2nd, September 2018.

Transport and logistics provider, CTI Logistics, has released positive full-year results through a combination of acquisitions and east coast expansion despite challenging market conditions in Western Australia.

CTI Logistics has reported a 18.4 per cent revenue increase ($4M), with earnings before interest, tax, depreciation and amortisation (EBITDA) up 8.7 per cent.

CTI Logistics acquired interstate road, rail and warehousing specialist, Jayde Transport, in October 2017. The purhase price included a cash payment of $6.5M at settlement, a deferred payment of $1M on 30 April 2018 and contingent consideration of up to  $2.85M on or before 15 February 2019.

In line with CTI's plan to expand and strengthen its Western Australian regional freight network, it acquired Stirling Freight Express in July 2018. Stirlng operates its own depots in Perth, Bunbury, Albany, Geraldton, kalgoorlie, Merredin and a number of regional agents covering smaller towns.

In a letter to shareholders, Executive Chairman, David Watson, said that CTI Logistics is continuing to look at opportunities for expansion and growth, both within Western Australia and nationally.

"We have just leased a purpose-built freight depot in Forrestfield to house and consolidate all of our WA regional freight operations, plus our interstate Jayde Transport operations acquired in November 2017.

"On the east coast, and in addition to the national GMK Logistics flooring businessm we are continuing to develop the interstate transport network, and now have bases scheduled services to and from all mainland capitals. Alongside this, we are expanding our east coast warehousing and distribution capability to servce national clients.

"Western Australia still presentes challenges reflecting the ongoing economic conditions, with some pressures on client volumes and margins. Implementation of the above also incurs one-off and short term extra costs, but we are working hard to offset these costs by consolidation of the freight depots in Perth, Bunbury, Albany and Adelaide, and by significant fleet synergies made possible by this consolidation. We are also exiting two leased warehouses, in Malaga in October and in Carlisle in December, and consolidating that activity at our owned premises in Hazelmere," he said.

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