Pioneer Corporation Africa group revenue for the first five months of the year surged by 17% to $10,7 million driven by improved performance of its cross-border trucking business.
Continuing strong demand for imports into the country is expected to boost its regional business as a result of movement of goods from neighbouring South Africa.
In a trading update to shareholders chief executive officer Albert Ushe said increased export volumes from the mining sector had propelled its south bound freight loads into South Africa and the trend is expected to continue to year-end and beyond.
Trucking revenue was up 28% while net profit to date was $476 354 compared to a loss of $695 555 same period last year.
“This is a significant movement in business performance. Profitability has been driven largely by remodelling and re-structuring strategies implemented in 2010 to streamline business operations, reduce overheads and achieve operational efficiencies,” said Ushe.
“Increased capacity (trucks) and aggressive marketing strategies driven largely by the cross-border division also positively impacted performance to date.”
He said the company was in the process of recapitalising and is working on finance structures in order to purchase a new fleet of buses.
“The plan is to buy 50 new buses and inject into the fleet for cross-border contracts business and local routes. The first batch of eight buses have been purchased and delivery is expected soon,” said Ushe.
“In the trucking division, 34 trucks have been purchased and injected into the fleet since beginning of the year and a further 50 will be added by year end. He said the company will invest in information technology (IT) with a view of introducing a new bus IT system that would ensure centralised ticketing system and use of electronic cards for payments by passengers will be commissioned by year-end.
Pioneer which in recent weeks have published a cautionary statement said necessary announcements would be made once discussions and regulatory approvals have been completed.
“We were profitable in the first half of the year and this trend is expected to continue to year-end. In fact, the second half of the year is our strongest performance period and we will capitalise on that,” added Ushe.