A rare profit upgrade emerged from the late filings at the ASX on Friday night.
Perth-based transport services group CTI Logistics Ltd says it now expects to lift 2012-13 pre-tax earnings by 32% to 38%. While much slower than the 100% increase at the December 31 halfway mark, it will still be quite a solid result compared with many other listed companies, large and small.
The company said in the short statement that while the higher revenues and profit will come from continuing oil and gas related work and growth in its traditional logistic services area, problems in one area have trimmed the performance in the second half.
"Profit expectations are lower than they otherwise would be due to the taking up of costs associated with the recent commissioning of the new Hazelmere complex, the refurbishment of new vehicles associated with the establishment of a regional re-haul service and the costs of personnel training requirements associated with an energy related project for which CTI Logistics is providing contract labour plus plant and equipment," the company said.
"These costs will be offset in the new financial year with additional revenue streams," the company told the ASX.
CLX 1Y – Big rise in earnings
The shares eased 2c to $1.76.
Pre-tax earnings for the December half rose solidly to $8.15 million from the $3.9 million earned in the first half of the previous financial year.
The company earned $10.78 million pre-tax in 2011-12, so it is looking at reporting a pre-tax profit of well over $13 million for the financial year which ends this week, still a significant improvement in the current weak economic climate and slowing spending in the WA resources sector where the company operates.
Singapore Airlines has been cleared to complete the acquisition of 9.9% of Virgin Australia from Sir Richard Branson’s Virgin Group. The deal should be completed by the end of this week, meaning Singapore will hold a 19.9% stake in Virgin Australia.
Virgin Group’s stake in the Australian operation falls to 13% with the sale of 255.5 million shares to Singapore which becomes the second largest shareholder in Virgin Australia after Air NZ which is awaiting FIRB approval to lift its stake by 3% to 26%.
Air NZ lifted its stake past the 19.9% stake earlier this month with the purchase of 3.1%, and then sought approval to buy another 3%.
Virgin shares eased by just under 2% to 42.5c on Friday.
And a rough end to another bad week for Newcrest Mining which fell to nine-year lows on Friday after the gold price fell out of bed on Thursday night, our time.
But on Friday, Comex gold in New York steadied, ending at $US1298 an ounce, up $US12 on the day, but almost 7% down for the week.
Newcrest shares slid by more than 6% at one stage on Friday, but ended at $10.35 down 3.7%.
Newcrest, along with all other gold stocks were sold down heavily on Friday after the big fall overnight Thursday.
But their prices recovered a bit in afternoon trading as buyers reappeared.
Newcrest shares hit a low of $9.96 during trading, the lowest since September 2003 – it was $US42 a share in late 2010 when it bought the troublesome Lihir mine in Papua New Guinea and other assets.
ASIC is still investigating the company’s market update and the sharp fall in the price of the shares ahead of that statement a fortnight ago last Friday.
Newcrest shares fell by around 11% last week.
And in Perth, Kerry Stokes’ Seven West Media is starting a cost-saving and asset rationalisation move that will see it move its Perth TV operations from a standalone operation to co-locate with the offices of the West Australian Newspaper group.
WA boss of Seven West Chris Wharton said last week that the board had approved the $10 million project, which will see a broadcast studio built at the WAN HQ, as well as the refurbishment of parts of the existing building to accommodate about 115 TV station staff.
The newsrooms of The West Australian and Channel 7 will be integrated during the move.
The land where Seven is currently located in the Perth suburb of Dianella will be sold off for a property development.
Seven West Media has started cutting around 100 jobs in Perth, including 33 journalist positions.
