CTI Logistics has put more of its surplus properties on the market after disclosing that its underlying profit continued to deteriorate during the March quarter, with the business hit by what it said was a severe downturn in activity in Western Australia.
Revenue from its WA client base was down 16.5 per cent for the nine months to March 2016, compared with the previous corresponding period.
That flowed through to the group’s underling profit, or EBITDA, which was down 17.8 per cent over the same period.
The company said it had started a cost-saving program to adjust to the lower levels of activity.
In addition, it has put three non-core properties on the market and may sell two more.
That followed the $26 million sale and leaseback of its Bibra Lake warehouse in October last year.
CTI used the proceeds to reduce debt, following the purchase of Sydney-based GMK Logistics.
The March quarter commentary was similar in tone to its prior half-year report.
The company said volumes had declined across the courier and general freight markets, with the downturn compounded by pricing and margin pressures.
CTI said warehousing has also been adversely affected, and additionally it faced significant costs associated with the drawn out implementation of a new distribution model and warehouse management system for a large client.
CTI’s shares closed unchanged today at 89 cents each.
