A positive health and safety culture have been instrumental to the strong operational results reported by CTI Logistics.
The Perth-based transport and logistics company upon release of its annual report cited an excellent safety record following a period of high volumes on its way to $302 million in operational revenue, an increase of 7 per cent on the previous period.
Strong national growth across a broad customer base was also reported with operating cash flow of $46.8 million up 17 per cent on FY22.
“Our achievements are testament to the hard work and dedication of our staff and subcontractors around Australia, delivering for our customers in a disrupted logistics market,” CTI Logistics said in a prepared statement.
A strong focus on revenue capture, especially in Western Australian regional freight, saw transport revenue, furthered by the acquisition of Action Couriers and Foxline businesses, increase to $184.7 million, a rise of 6.7 per cent.
Profits were also healthy as CTI reported $53.4 million in EBITA across transport and logistics.
Net debt remained low at $20.1 million while net assets increased by 12 per cent to be valued at $113 million.
Interstate transport, according to CTI Logistics, benefited from supply chain disruptions, including higher volumes and demand for premium freight services before a normalisation of supply chains returned at the end of period.
The business invested $30.5m in property, plant, equipment, security monitoring and transport/cyber/governance systems with fleet renewal, especially in upgrading commercial vehicles to Euro 5/6, rail utilisation, routing and alternative fuels a major focus.
The Hazelmere WA development has progressed with the regional freight hub expected to be completed later in the month.
Costs of $17.9 million have been incurred as of 30 June 2023 on the site consisting of 25,000 sqm in buildings on 60,000 sqm of company-owned land.
“This development is a significant investment for the company, which expands the WA metro and regional transport capacity and will generate returns as well as reduce leasing costs,” CTI Logistics said in a prepared statement.
The regional freight hub development has been majority funded by cash flow, with the balance from available banking facilities.
Plans are being finalised for the development of the remaining 34,000 sqm adjoining company-owned land.
CTI Logistics confirmed it expected to relocate its Queensland operations by September 2023 to a new strategically located facility at Yatala between Brisbane and Gold Coast.
The company anticipates further growth ahead of the 2032 Brisbane Olympics with the new 23,000 sqm facility combining two sites that will likely generate operational synergies and positions.
In addition, the Company is increasing its capacity in NSW for its GMK operations in Gregory Hills by a new 11,700 sqm facility at an adjoining site.
“Considering the number of the above factors affecting the results in the current period, forecasting the future operating environment and outlook remains difficult,” the company said.
“However, the Company continues to generate strong cash flow and is poised to take advantage of and benefit from opportunities as they arise despite the changing economic conditions.”