ferret's stock to watch: cti logistics limited

Ferret's Stock to Watch: CTI LOGISTICS LIMITED
08:00, Monday, 6 September 2004

A COMPANY OFF THE RADAR SCREEN BUT PRODUCES A STUNNING PROFIT

Sydney - Monday - September 6: (RWE)
************************************

OVERVIEW:
*********

News of a huge jump in profit and a 10 per cent buyback in stock
last week failed to persuade investors that they could be riding a
winner.

The ASX announcement initally pushed CTI logistics up to 65c but
by Friday CTI shares had slipped back to 59c after traders brushed aside
the buyback in what should become market support over the next 12 months.

CTI Logistics last week reported net profit for the year was up
696 per cent to $1,711,000 for the year to June 30.

Revenue from ordinary activities amounted to $74,302,000, down
$17,219 on a year ago.

Directors disclosed that it reflected the sale of several
businesses over the last year and a half.

Net interest bearing liabilities have been reduced by $9,630,000
in the year under review and borring costs have been reduced by $698,000
to $1,092,000.

A fully franked dividend of 1c a share will be paid to
shareholders on November 12, making 2c a share for the full year.

The board admitted that the company is too small to be on the
radar screen of brokers and analysts and there is little liquidity on the
market for the company's shares, the price of which sufferes accordingly.

It is difficult for current shareholders to exit the register
without affecting the share price, so subject to operating requirements
and market conditions, the company is proposing to buy back up to 10 per
cent of the issued share capital over th next 12 months.

While Mr Trevor Kennedy resigned from the position of deputy
chairman last November he still appears to retain his 6 per cent stake
through his company Golden Words.

The company paid tribute to Mr Kennedy's contribution made since
1996 saying he was an enthusiastic and valued member of the board.

SHARE PRICE MOVEMENTS
*********************

Shares of CTI Logistics sold steady at 59c on Friday. Rolling
high for the year has been 65c and low 32c. Dividend is 2cents to yield
3.39 per cent.

In the first half of the year revenue fell by about $3 million as
a result of the sale of the Freight Forwarding and Customs Broking
businesses in May 2003 and the sale of the Eastern States
transport businesses in October 2003.

They were partially offset by the one-off revenues on the sale of
businesses and assets.

In the half year to December 31,the net profit attributable to
members of the company jumped from $103,938 to $1,469,352.


BACKGROUND
**********

CTI Logistics Ltd, formerly known as Darowa Corporation Limited
was first listed on December 1988.

The Group's principal activities are the provision of courier,
taxi truck, warehousing and freight forwarding services and the provision
of printing, paper converting, manufacturing of plastics products and
security services.

The consolidated entity predominantly operates in Australia with
headquarters in Perth WA.

Logistics and transport accounted for 73 per cent of fiscal 2002
revenues and manufacturing, security and other, 27 per cent.

CTI is Perth based but offers services such as local couriers,
taxi trucks, warehousing and fleet management throughout Australia.

The company operates courier services through the metropolitan
area of all capital cities across Australia.

The division has fleets of vehicles ranging from pushbikes to 2
tonne trucks.

A job tracking system "Predator transport management system"
allows clients to track their parcels from driver allocation to pick-up
and delivery.

The company owns taxi truck fleet ranging from 1 to 12 tonne

vehicles for hire.

The fleet also owns specialised vehicle such as table tops,

enclosed vehicles, curtain siders, crane trucks and tail-lift fitted
vehicles.

A general transport fleet is also available for casual hourly
hire or full day contracts, trucks include; semi-trailers, extendable
trailers, drop deck trailers, container trailers for use on wharfs and
swinglift trailers.

CTI XPRESS SYSTEMS offers document and parcel delivery services including local same day/overnight parcel delivery, same day/over night
air services, road express and international air express services.

The company also has warehousing facilities in Sydney, Melbourne,
Brisbane, Adelaide and Perth.

ENDS

Copyright © 2004 RWE Australian Business News. All rights reserved.

>>>>>>>>>>>>>>>>>>>>>>>>>>>

Cheers,

Fig Jam

I don't hold CLX