malvernmugadzikwa
Business Writer
Unifreight Africa, one of the country’s largest haulage companies, say tonnage moved in 2021 increased 22 percent largely driven by new business acquisition and growth of the existing customer base.
Listed on the Zimbabwe Stock Exchange (ZSE), the firm is a transport holding company, offering services in logistics, freight and passenger services to clients in sub-Saharan Africa.
The company has since 2020 pursued new revenue streams, investments in new vehicles and disposed of some assets, setting a firm foundation for business sustainability.
Peter Annesly, the group’s chairman, said the company was relatively happy with the results produced during the period under review, particularly the acquisition of new revenue-earning equipment, growth in the balance sheet in real terms, and the investment in Zimplow Limited, which resulted in the group enjoying benefits from the synergy.
“Tonnage was 0,7 percent above budget and 22 percent up from the prior year and the 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,” he said in a statement of the financials for the year ended December 31, 2021.
Group revenue for the period also increased 32 percent to $3,21 billion, which was two percent above budget.
Annesly said that despite the healthy growth in sales, margins have been pressured by the rising cost emanating mainly from exchange rate volatility and US dollar inflation that was experienced during the year.
In terms of the disposals and acquisitions, Unifreight in 2020 disposed of two subsidiaries to Zimplow Holdings for an equity consideration as the company sought to transform its illiquid investments into tradable ZSE shares.
Through its subsidiary Clan Services, Unifreight had a stake of 51 percent in Tredcor Zimbabwe and 100 percent of Birmingham Investments, which were acquired by Zimplow.
The transaction was that Zimplow would acquire Unifreight’s 100 percent shares in Birmingham Investments for a consideration of $58 million to be settled with 15,774,446 newly issued ordinary shares in Zimplow.
In addition, Zimplow offered to acquire Clan Services 52 percent shareholding for a consideration of $67 million settled with 18,399,564 newly issued shares of Zimplow.
According to Unifreight, the transaction presented an opportunity to enhance Tredcor’s performance which the company said had dragged Unifreight’s performance over the years.
Mr Annesly noted that the operating environment remained challenging, but the company is confident that the authorities will implement measures to stabilize the exchange rate and inflation.
“The year 2021 was characterised by a rebound in economic activity as a result of the easing of restrictions that had been implemented to combat the Covid 19 pandemic. This was a welcomed development although the operating environment remained challenging,” he said.
He added that the effect of rising inflation, volatility of exchange rates, and policy “inconsistencies” has affected business confidence within the economy.
“As a result, the company has implemented measures to reduce the impact on the business and we are confident the measures will secure the future of the business,” said Mr Annesly.
The company declared a dividend of 59 cents per share.
Bongani Ndlovu