CTI flags 90pc profit jump

CTI Logistics has announced its second big profit upgrade in the space of two months as it benefits from high demand for its freight and warehousing services.

The West Perth-based company said profit before tax for the half-year to December 2022 was expected to exceed the previous corresponding result by 90 per cent.

Just two months ago, it said profit would be about 60 per cent.

That triggered a spike in its share price, from about $1.30 to more than $1.60.

Today’s update was announced after trading on the ASX closed and is likely to trigger another jump in the share price.

CTI’s pre-tax profit in the half-year to December 2021 was $8.3 million on revenue of $133 million.

That was followed by a pre-tax profit of $13.7 million in the second half on revenue of $150 million.

The latest upgrade indicates CTI is on track for an even better result in the half-year to December 2022, of about $15.8 million.

The company attributed the latest upgrade to tighter cost controls and continued revenue growth in November and December as a result of project work across warehousing and transport, ongoing demand for premium freight services, supply chain disruptions and higher utilisation of its fleet.

CTI shares last traded at $1.615, valuing the company at $128 million.