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CTI LOGISTICS LIMITED Earnings Release 2010
64663_rns_2010-02-22_f7255263-8a92-4dba-900e-7ba82050d8d4.pdf
Earnings Release
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ABN 69 008 778 925
328 Aberdeen Street West Perth WA 6005 Postal Address PO Box 400 West Perth Western Australia 6872 Telephone (08) 9227 6333 Facsimile (08) 9227 8000 Email corporate@ctilogistics com Web www ctilogistics com
23 February 2010
Dear Shareholder
The Company has today released its results for the six months to 31 December 2009.
Profit after tax for the period was \$2,287,626, on revenue of \$29,212,104. While revenue was up 11.2% over the previous corresponding period, the profit was off by 8.4%, reflecting the tough competitive pressures that continue in the mature Perth courier market. Earnings per share was 5.58 cents, and the Company will maintain the 3 cent fully-franked interim dividend.
You'll be pleased to know that the second half of the financial year has started well, with January well above budget. We are currently gearing up for two major distribution contracts which both commence in March, and there are signs of positive improvement in most of our ongoing business operations. In addition, our three new organic 2009 start-ups, the South-West regular freight runs to major centres, CTI Wine Logistics and CTI Wrapping Services, are each growing well in the improving business environment. CTI Wine Logistics provides a premium temperature-controlled, refrigerated warehousing facility, with distribution via dedicated vehicles. The latter business primarily involves the plastic shrink-wrapping of plant and equipment heading to Barrow Island for the Gorgon project. Subsequent fumigation of the wrapped plant and equipment by others is designed to maintain protection of the unique Barrow Island environment.
So as you can see we are hopefully entering exciting times for the Company. It is therefore with mixed feelings that I am starting to put succession plans in place to support the continued long term growth of the Company. With effect from 23 February 2010, long serving executive directors Bruce Saxild and David Mellor will become Joint Managing Directors, and Rio Tinto executive Matthew Watson will become a non-executive director, representing the Watson family interests and long term commitment to the Company. These appointments will enable me to move to a non-executive chairman's role in due course.
Yours faithfully
David Watson EXECUTIVE CHAIRMAN