HomeBusiness DigestClan almost doubles volumes

Clan almost doubles volumes

Shakeman Mugari

VOLUMES in Clan Holdings Ltd have nearly doubled during the last six months as the group completes its restructuring process begun in January.

ial, Helvetica, sans-serif”>Chief executive officer Harvey Leared said the group was performing “well in volume and revenue terms and there were tight controls on overheads particularly workshop costs”.

He said workshop costs had been kept down by a third to 12% from an average of 33% last quarter, while overall group performance was ahead of current inflation levels.

Leared said: “The company is performing quite well under the circumstances and the restructuring is just about to be complete. For a company that has spent so much to reshape its focus I think our results will be satisfying to the market for the period ending June.”

The company replaced a third of its old fleet while about two thirds now bear the new company logo unveiled at an analysts’ briefing in April.

Leared said the company had begun to make progress on the contract division, expected to contribute about a third of the group revenue.

The company is negotiating innovative financial structures with local and regional bankers as well as vehicle suppliers to enable the group to take a firm position on the market.

Clan recently signed a $100 million contract for the Marondera to Mutare route.

Leared said the company had begun some cross-border business between Harare and Johannesburg, adding that once fully-operational it would contribute significantly to future growth and as a link between South Africa and the regional market.

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