UNIFREIGHT reported a net profit of US$1,7 million for the full year ended December 2016 (FY16) from a net loss of US$4,2 million in the preceding year after restructuring its business model and an aggressive cost-cutting exercise that saved over US$5 million.
Notwithstanding a 4,5% decline in the group’s revenue from continuing operations of US$23,8 million from US$24,97 million recorded in the preceding year, profit before tax from continuing operations improved to US$88,000 from the previous loss of US$3,1 million on decreased overhead costs.
Chairman Patrick Chingoka said overheads fell by US$5,176 million from the previous year on the back of the restructuring and cost reduction measures in 2015. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased to US$4,1 million in the period from US$55 000 achieved in 2015. Chingoka said the group made a profit of US$3,407 million from the deconsolidation of Tredcor Zimbabwe (Private) Limited, which was included within the profit for the year from discontinued operations.
Net cash generated from operations improved significantly to US$2,7 million from a negative US$8,3 million recorded in the previous year.
Total assets decreased by 11,5% from US$35,9 million in the preceding year to US$31,7 million following the deconsolidation of Tredcor Zimbabwe (Private) Limited.The group reduced its borrowings significantly to US$3,96 million from US$9,26 million recorded in the previous year.
The group did not declare a dividend. Chingoka said going forward, the group would continue to invest in new vehicles and rigorously pursue new revenue streams while containing costs.