Harare – Transport and logistics company, Unifreight Africa Limited’s turnover for the half year ended June 30, 2018 grew by 20 percent to close the period at $13.086 million from $10.906 million in the first half of 2017.
In a statement accompanying the company’s financial results, Chairman Patrick Chingoka said the encouraging turnover was generated from nurturing the existing clients leading to organic growth as well as pursuit of new business.
He added, “On the other hand, improved yields were achieved as a result of the gains from balancing the product mix of “Full Truck Loads” and “Less than Truck Loads”.
However he noted that the operating environment during the period under review remained uncertain due to the anxiety created by the run up to the harmonized elections.
He said this, coupled with the liquidity and foreign currency challenges, made planning and cost control difficult.
“Despite these challenges, the Group continued on an upward trajectory, picking its momentum from the 2017 positive performance.”
In the period under review, profit from Continuing Operations remained fairly static at $528 thousand compared to prior year Profit of $565 thousand with costs being higher than expected due to foreign currency shortages and substantial non-recurring expenditure incurred to refurbish trailers and maintain operations.
He said improved efficiencies in Workshops, which is aligned with Operations as well as deliberate fleet renewal resulted in increased fleet availability and better capacity utilization to meet the improved demand.
“During the six months period, ten new Scania G460 trucks were procured to run inter-city operations as well as ten eight-ton UD trucks and five Hyundai H-100 trucks for local collection and delivery services.
“This has resulted in better service to customers and competitive advantage. The board is committed to and has directed implementation of a systematic but sustained fleet renewal program.”
Going forward, Chingoka said the Board believes that the future is bright and will therefore accelerate the pace of business development and increase investment.
“The Group remains optimistic about the future and is implementing more aggressive business strategies to capitalize on opportunities lying ahead in order to maintain the profitability path the group is currently on.”
– Equity Axis News