CEO Albert Ushe told the AGM on Thursday that: “We are profitable in the first half of the year and this trend is expected to continue to year end. In fact, the second half of the year is our strongest performance period and we will capitalise on that. The prospects are bright for Pioneer and significant profit is projected for 2011.”
“Profitability has been driven largely by re-modelling and re-structuring strategies implemented in 2010 to streamline business operations, reduce overheads and achieve operational efficiencies. Increased capacity (trucks) and aggressive marketing strategies driven largely by the cross-border division also positively impacted performance to date.”
In a trading update to shareholders, chief executive officer Albert Ushe said increased export volumes from the mining sector had propelled its south bound freight loads into South Africa and the trend is expected to continue to year-end and beyond.
Trucking revenue was up 28% while net profit to date was $476 354 compared to a loss of $695 555 same period last year.
“This is a significant movement in business performance. Profitability has been driven largely by remodelling and re-structuring strategies implemented in 2010 to streamline business operations, reduce overheads and achieve operational efficiencies,” said Ushe.
Pioneer was in the process of re-capitalising the business and was considering various options to ensure the assets remained competitive on the road, he added.
“We are working finance structures to bring in a new fleet of buses. The plan is to buy 50 new buses and inject into the fleet for cross border, contracts business and local routes. The first batch of eight buses have been purchased and delivery is expected soon.”
In the trucking division, 34 trucks had been purchased and injected into the fleet since the beginning of the year and a further 50 would be added by year end.
“Pioneer is also investing significantly in IT. A new bus IT system which will ensure centralised ticketing and use of electronic cards for payments by passengers will be commissioned by year end. In addition, a new freight software for customers to track and trace their shipments is being implemented and to be commissioned before year end for both cross border and local freight consolidations,” he said.
Continuing strong demand for imports into the country is expected to boost its regional business as a result of movement of goods from neighbouring South Africa.
“Increased capacity (trucks) and aggressive marketing strategies driven largely by the cross-border division also positively impacted performance to date.”
Post published in: Zimbabwe News