• Revenue and EBITDA up 4% and 7% respectively
• Profit before tax expected to be 16% lower
• Strategic investments made to drive longer-term growth
• Strong cash flow and property development progressing well

CTI Logistics Limited has provided a trading update for the half year to 31 December 2024. The company advises that revenue and EBITDA for the period are expected to be up 4% and 7% respectively compared to the previous corresponding period. However, the declared profit before tax for the half year is expected to be approximately 16% lower than for the previous corresponding period. The reduction in profit before tax primarily reflects strategic investments made to drive longer-term growth. These include the further development of owned sites, vehicle and equipment acquisitions, and pallet racking for new leased locations which have significantly expanded the company's property footprint in Queensland, New South Wales and Victoria. As a result, depreciation and interest charges increased by $2.6m and $1.0m respectively compared to the prior corresponding period. While impacting short-term profitability, these investments are expected to lay the groundwork for sustainable and increased future earnings. Operationally, there has been an increase in demand for general freight services over that of premium freight services, offset by increased minerals and energy related work in the logistics segment, which has remained strong through the period. The company continues to generate strong cash flow and the development of the remaining property at Hazelmere in Western Australia is progressing well with completion and occupation expected by mid-2025.