Pioneer revenue up 7 percent

Upside potential in Pioneer’s performance is significantly high as directors believe adding trading results of its newly acquired business, UniFreight Swift, could double revenue and profits.

The growth in revenue this year and the lower costs helped Pioneer achieve a 19 percent increase in after- tax profits for the period.
Chief executive Mr Albert Ushe would not reveal profitability levels, as Pioneer will release its financials for the interim to June soon, and is therefore in a closed period.
But he pointed that the positive performance was largely attributable to efficiencies due to new assets, strict cost reduction measures and tailor-made marketing of Pioneer’s services.

“The group continues to invest in new assets, buses and trucks, in order to continue providing efficient service to our customers.
“Four new buses and 11 trucks have been purchased this year in addition to new assets injected into the fleet in 2011,” he said.
The assets were bought under a US$9 million recapitalisation programme that will result in the acquisition of 50 new passenger transport coaches and 34 long-haul trucks.

“We are finalising plans to buy 20 more buses for the local and contract markets and 20 additional trucks for cross-border (business) this year.
“This will ensure adequate critical mass for the business going forward,” said Mr Ushe.
Pioneer said its “strategy is to continue injecting new assets gradually to grow capacity and also replace old equipment”.

The acquisition of operational assets of Swift was completed in 2011 and Pioneer is waiting for approval from one regulatory authority before incorporating Unifreight Swift’s business into its results.
“The incorporation of Unifreight Swift results will have significant impact in terms of size of the business in terms of assets, revenues and profit,” the transport and logistics firm said.

The transport and logistics firm managed to turn around its fortunes after recovering from a loss position in 2010 to post US$291 000 profit in the full year to December 31, 2011.

The improved performance came on the back of a 16 percent jump in revenue to US$26,4 million as foreign operations contributed 84 percent of inflows during the same period.

Pioneer has commissioned new information technology systems, Freightware, for tracing and tracking of cargo, and Fleet-Pro, for efficient fleet management to ensure efficient service.

Looking ahead, Pioneer said that the second half of the year is its strongest performance period and the firm projects significant growth in both revenue and profits by the end of this year.