HomeBusiness DigestPioneer Corp on the road to profitability

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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.

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