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Pioneer records $1 million loss

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PIONEER Corporation Africa posted a loss of $1 million for the half-year ending June 2013 compared to a profit of $656 000 over the same period last year due to limited liquidity and a challenging environment in the economy...

PIONEER Corporation Africa posted a loss of $1 million for the half-year ending June 2013 compared to a profit of $656 000 over the same period last year due to limited liquidity and a challenging environment in the economy, an official from the company has said.

By Victoria Mtomba

Pioneer chairman Paul Chingoka said the first six months of the year were difficult resulting in the group recording a 9% decline in revenue to $12,3 million from $13,5 million over the same period last year.

Chingoka said the decline recorded in the revenues had directly resulted in the group recording a $1,8 million loss in the six months period compared to a profit of $352 000 over the same period the previous year.

“Management, however, is confident that there will be a turnaround in the last quarter of the year and that this loss will be reduced by year end. “This is in addition to advanced plans to increase fleet capacities before the end of the year,” Chingoka said.

He said plans to purchase Unifreight Limited operating assets were still awaiting regulatory approval.

“We are confident that once approval is granted, Pioneer Corporation Africa will not only double its revenue base, but will also be able to fully maximise on synergies that exist and provide a more complete transport and logistics solution to the market,” he said.

The company chief executive officer Albert Ushe yesterday said: “We submitted our revised indigenisation proposals to the indigenisation board early in July and we are now waiting for the finalisation of the plan.”

Ushe said the company acquired 15 buses worth $2 million from China for the local and regional markets.

In the first half of this year, former Finance minister Tendai Biti revised economic growth rates for the economy down to 3,4% from 5% due to uncertainty and under performance of the mining and agriculture sectors.