Pioneer out of the woods

of a 16 percent jump in revenue to US$26,4 million as foreign operations contributed 84 percent of the inflows in the period under review.
Pioneer’s foreign subsidiaries include Pioneer Transport South Africa, Pioneer Clan Botswana and Mavambo Coaches South Africa.
The transport and logistics firm recovered from a US$1,5 million loss in 2010, representing a US$1,8 turnaround in group performance.
Chairman Mr Patrick Chingoka said the rise in revenue was a result of aggressive marketing strategies last year that brought lucrative contracts.
“The performance by foreign subsidiaries improved mainly due to aggressive marketing strategies implemented that resulted in lucrative new contracts being secured and hence increased revenue,” he said.
Pioneer also attributed the strong performance to the recapitalisation programme that enabled it to acquire new buses and trucks.
Mr Chingoka said the improving economic performance was this year expected to buoy the transport and logistics group’s operations.
“The new assets injected into the fleet during the year and more to be injected will enhance the group’s ability to compete effectively in the market hence continued growth,” said Mr Chingoka.
He said the strong recapitalisation drive undertaken last year resulted in renewed confidence in Pioneer’s brands by customers.
Its service portfolio was further buttressed by the acquisition of assets and brands of Unifreight Swift, which shareholders have approved but some of the regulatory approvals were yet to be secured.
The ZSE-listed transport concern acquired fellow industry player Unifreight Swift for US$7,2 million in a deal also meant to restore the group’s position in the consolidated business.
Subject to approval by the regulators, Pioneer will issue 514 974 875 shares of US$0,001 each for a purchase consideration of US$4 million.
The total purchase consideration is made up of US$900 000 Unifreight debt secured on trucks, US$1,5 million for the Swift brand payable over five years and US$711 000 for Unifreight IT systems over three years.
Pioneer will increase authorised share capital from US$600 million to US$1,4 billion to give effect to the acquisition of  Unifreight assets and liabilities.
The transport and logistics group’s asset base increased by US$12 million to US$30 million after the acquisition of trucks, trailers, vehicles and equipment of Unifreight acquired to regain lost market share.
Pioneer said Unifreight presented an opportunity to claw back the market lost during period of economic instability when it closed the consolidations business it dominated through Clan Transport.