CTI flags profit fall

Tuesday, 16 February, 2016 - 13:57

Perth-based trucking company CTI Logistics has flagged an 18 per cent slide in half-year profit on the back of the economic downturn.

In a statement, CTI said it expected to report a pre-tax profit of about $23.8 million, however this includes the $18.9 million made from the sale of its Bibra Lake warehouse facility last year.

The proceeds of the sale were used to fund the previously announced acquisition of Sydney-based GMK Logistics.

CTI said the GMK business had materially offset the impact of the downturn in Western Australia.

As a result, the group expects to report an EBITDA of $9.3 million - this compares with EBITDA of $9.8 million in the previous corresponding period.

After including holding costs associated with the company's Hazelmere development land and higher depreciation and amortisation charges against the GMK business, CTI expects pre-tax profit (excluding the property gain) to fall by between 15-18 per cent on the previous corresponding period.

CTI shares were unchanged at $1 each at the close.