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CTI Logistics releases trading update

CTI Logistics expects to report profit before tax of approximately $1.5 million for the half-year ended 31 December 2019, compared to $4.1 million for the prior corresponding period reached after adding back the contingent consideration of $2.34 million relating to the purchase of Jayde Transport.

Earnings Before Interest Tax Depreciation Amortisation (EBITDA) for the prior period ended 31 December 2018 was $9.6 million on revenue of $111.8 million, with EBITDA for the half year ended 31 December 2019 expected to be approximately $7.0 million on similar revenue.

The results, according to CTI Logistics, continue to be impacted by the state of the economy, particularly in Western Australia, with reductions in volumes and activity, and pressures on margins from both existing and potential clients.

Company Secretary, Owen Venter, said the company continues to generate strong cash flow and is poised to take advantage of, and benefit from, any uplift in the economy despite challenging market conditions.

“The company also continues to invest in information technology to enhance our operating systems and performance in both warehousing and transport,” he said in an Australian Stock Exchange (ASX) letter dated 23 December 2019. “The complete financial results for the half year to 31 December 2019 will be released to the market in February 2020.”

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