The recovery in the group’s revenue was helped by the aggressive marketing strategies and the company’s recapitalisation drive last year which brought lucrative contracts to foreign divisions.
In a statement attached to the group’s financial results, chairman Patrick Chingoka said his company “The new assets injected into the fleet during the year and more to be injected will enhance the group’s ability to compete effectively in the market hence continued growth” Chingoka said.
Last year, the group acquired operating assets worth US$7,2 million from Unifreight, but the transaction is still awaiting regulatory approvals. Group revenues grew by 16% to US$26,4 million, increasing from US$22,7 million in the previous year. The improvement was helped by a contribution from foreign subsidiaries accounting for 84% of revenue.
Operating profit from foreign subsidiaries was up US$879 000 improving from US$281 000 recorded last year, which was helped by the purchase of new trucks and aggressive marketing strategies.
The company’s foreign subsidiaries include Pioneer Transport South Africa, Pioneer Clan Botswana and Mavambo Couches South Africa. However local subsidiaries did not perform to expectations owing to depressed liquidity in the market.
Although occupancy levels for the passenger division slightly improved, they were below expectations due largely to low disposable incomes from travelling customers.
The company said local business is still negatively impacted on by depressed liquidity on the market. The projected economic growth should improve revenue.