CTI Logistics posts FY2020 results

Transport company, CTI Logistics, cites COVID-19 impact as well as property and vehicle leasing costs in its latest financial figures.

Revenue from operations for the year ended 30 June 2020 was up 1.5 per cent to $215,209,363.

Profit before tax for the year was $2,470,799, down 40.2 per cent on the previous year and EBITDA was $14,006,120, down 7.9 per cent. These results reportedly exclude a $579,969 impact of implementing AASB 16 Leases and a non-cash impairment of $5,771,500 on the value of vacant land at Hazelmere.

The impact of AASB16 on CTI Logistics' profit and loss arises after adding back of property and vehicle lease costs of $14,798,987 and then deducting depreciation of $11,986,277 relating to right-of-use assets as well as deducting finance costs of $3,392,679 relating to the corresponding lease liability.

Reported net loss after tax was $4,348,839, representing a loss per share for the year of 5.79 cents. This included the effects of AASB 16 and the non-tax deductible, non-cash impairment of $5,771,500 on vacant land.

“The 2020 financial results have been impacted by the effects of the COVID-19 pandemic, floods and bushfires earlier in the year as well as the overall state of the economy, with continued margin pressure across a wide range of clients,” CTI Logistics Executive Chairman, David Watson, said in a letter to shareholders.

“Given the above results for the year, the directors have not declared a final dividend.

“Although current market conditions have been challenging, the company continues to generate strong cash flow and is poised to take advantage of and benefit from any uplift in the economy.”

In March, CTI Logistics unveiled its investment strategy to maintain measured, profitable growth.

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