|Pioneer revenue surges to US$13,5m|
|Friday, 21 September 2012 00:00|
PIONEER Corporation Africa revenues surged by 5,6 percent to US$13,5 million in the half-year to June 30 2012 driven by a more efficient and predominantly new asset base. But operating profits took a slight knock to US$352 000 weighed down by an increase in amortisation due to recapitalisation programme that brought in more assets.
Earnings per share came it at 0,12 cents while diluted profit per share was also 0,12c from US0,01c the prior year.
Chairman Mr Paul Chingoka said the group was positive of stellar performance in the usually busier second half of the year leveraging on better efficiencies from newer assets.
“The business is now operating at efficient levels due to the new fleet. The group continues to follow a cost leadership strategy with sharp focus on cost containment,” he said.
Mr Chingoka said Pioneer Corporation’s foreign subsidiaries in Botswana and South Africa continue to perform well.
He said the group performed relatively well despite challenges of incessant fluctuations in commodity and fuel prices.
Pioneer, like many other local companies, has not been spared by the constraints of liquidity due to limited access to working capital.
He pointed out that shareholders approved the purchase of fellow transport operator Unifreight’s, assets by Pioneer but regulatory approvals remained pending.
After completing the acquisition the transport and logistics firm will see the value of its asset base increase by US$12 million to US$30 million.
Pioneer acquired trucks, trailers, vehicles, equipment and state-of-the-art information technology systems from Unifreight.
The Zimbabwe Stock Exchange-listed logistics firm acquired the company’s assets in a US$7,2 million deal to reposition itself as a leader in transport and logistics business.
The transport and logistics firm also agreed to take up US$900 000 Unifreight debt secured on trucks, US$1,5 million for the purchase of the Swift brand over five years and US$711 000 for Unfreight’s IT systems payable over three years.
Pioneer remains free of any constraining debt with short borrowings of only US$1,5 million and long-term debt of 4,4 million as at the end of the period under review.
Pioneer intends to use its increased investment in information technology to ensure optimum fleet utilisation and attain a sustainable competitive advantage.