Unifreight Africa records strong volumes recovery

Business Reporter
LOGISTICS group, Unifreight Africa Limited, has recorded a solid volumes recovery as existing customers recover from the impact of Covid-19.

With an increase of 0,7 percent tonnage for the period ending December 31, which is above budget and 22 percent up from the prior year, the company has attributed this to new business acquisitions and relaxations in pandemic restrictions.

The firm said it is pleased with the results produced during the full year period to December 31, 2021, particularly the acquisition of new revenue-earning equipment, growth in the balance sheet in real terms, and the investment in Zimplow Limited, which will result in the group enjoying benefits from the synergy.

In a statement accompanying financial results for the year, Unifreight said operations have been characterised by a rebound in economic activity.

“Tonnage was 0,7 percent above budget and 22 percent up from the prior year. This increase in tonnage was a result of new business acquisition and average growth of 50 percent in volume as existing customers recovered from the impact of Covid-19 restrictions,” company chairman, Mr Peter Annesley, said.

“The effect of rising inflation, volatility of exchange rates, and policy inconsistencies has affected business confidence within the economy.

“We have implemented measures to reduce the impact on the business and we are confident the measures will secure the future of the business,” he added.

Last year, Unifreight disposed of two of its subsidiaries — Birmingham Investments and Tredcor to Zimplow Holdings Limited, a leading agricultural and mining implements manufacturer.

Prior to the disposal deal, Unifreight controlled 51 percent shareholding in Tredcor while the group owned 100 percent shareholding in Birmingham.

The disposal of the two assets was meant to improve the logistics group’s balance sheet. The group inflation-adjusted revenue of $3,212 billion is 32 percent above prior year and two percent above budget.

Inflation-adjusted profit for the year was $581 million as compared to a $123 million inflation-adjusted loss the prior year.

Despite the challenging trading environment during the year under review, the group said it will continue to look for opportunities to remain profitable.

Meanwhile, the board has recommended the declaration of a dividend of 59 cents per share.