Perth-based CTI Logistics yesterday upgraded its 2021-22 results, revealing a surge in revenue and earnings for the year to June 30.
The company yesterday revealed a 15% surge in revenue for the year and an even sharper jump in pre-tax earnings.
The company said profit before tax for the June 30 “is expected to exceed the profit before tax for the previous financial year by approximately 65%.”
The company earned a profit before tax in 2020-21 of $11.565 million, so the upgraded estimate would put the implied figure at around $18.5 million.
The upgrade saw shares in the tiddler – its market cap is around $75 million – jump more than 9% to $1.05 on a day when the wider market was flattened by a 4% plus slump. They ended the session up 4% at an even $1.
“The result has been driven by strong revenue growth, with annual revenue expected to increase to about $275m or 15% above that of the previous year.”
‘The revenue growth has come from increased freight volumes and increased usage of premium freight services, driven by supply chain disruptions and the ongoing impacts of COVID, plus special projects in both transport and warehousing.
‘The critical shortages of drivers, together with warehouse and general staff absenteeism and isolation due to COVID protocols, as well as increasing illness as a result of the flu, continue to impact the business.
Despite the solid performance, CTI said that forecasting the future operating environment and outlook remains difficult.
That’s a word we are going to hear more of in the June year and half year reporting period in August, along with inflation, supply chain problems and rising interest rates.
