Unifreight steady after restructure

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UNIFREIGHT Africa has been making strong performances despite a poor operating environment after the transport company’s restructuring exercise in 2015 and 2016.
In 2015, the group was restructured to reflect a “one-company-one-focus” business providing transport and logistics solutions.
And in 2016, it disposed of its subsidiary PXL Freight and Logistics and sold off the local Pioneer Services as part of an empowerment deal with its workers, all of which was meant to solely focus the company’s efforts on Swift and Bulwark operations.
Over the two-year period, the company also laid off about 200 employees and effected pay cuts on the remaining staff.
Progressing from a solid profit after tax (PAT) of $1,47 million, off $22,96 million revenues for the year ended December 31, 2017, the company reported a profit of $528 000 for the six months ended June 30, 2018.
Even though the company’s profits for the half year remained fairly static compared to prior year profit of $565 000, the group’s results for the period were reassuring with a turnover of $13,09 million, which was 20 percent ahead of the 2017 first half turnover of $10,91 million.
Patrick Chingoka, the company’s board chairman said Unifreight could not improve on its 2017 PAT despite higher revenues because costs for the period were higher than expected due to foreign currency shortages.
“The operating environment during the period under review remained uncertain due to the anxiety created by the run up to the harmonised elections.
“This, coupled with the liquidity and foreign currency challenges, made planning and cost control difficult,” Chingoka said in a statement accompanying the company’s half year results, which were published recently.
He said the group continued on an upward trajectory, “picking its momentum from the 2017 positive performance”, despite the challenges.
“Encouraging turnover was generated from nurturing the existing clients leading to organic growth as well as pursuit of new business. On the other hand, improved yields were achieved as a result of the gains from balancing the product mix…,” Chingoka said.
The company said improved efficiencies in workshops, which are aligned with operations as well as deliberate fleet renewal, resulted in increased fleet availability and better capacity utilisation to meet improved demand.
During the first half of the year, 10 new Scania G460 trucks were procured to run inter-city operations as well as 10 eight-tonne 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 programme,” said Chingoka.
The company has also been gaining goodwill in the market with its stock putting in one of the best performances on the Zimbabwe Stock Exchange this year.
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