PIONEER Corporation Africa posted a net loss of $856 000 for the year ended December 31 2013 after the company acquired Unifreight Limited at a cost of $2,456 million.
In 2012, the company made a loss of $208 000.
Company chairman Paul Chingoka said the challenging environment and lack of liquidity continued to affect Pioneer Corporation and had resulted in reduced activity as well as a stressed working capital environment.
The group’s revenue was down by 11% to $23,682 million in 2013 compared to $26,686 million in 2012.
Operating loss for the group stood at $3,2 million during the year under review.
“The subdued operating performance of the group is now set to be boosted in 2014 with the acquisition of the Unifreight business and the extra and varied operating units that will now form part of the group’s results,” Chingoka said.
Chingoka said the purchase of Unifreight was approved in the last quarter of 2013 and the business was expected to boost the revenues of the group by $21 million this year.
He said foreign subsidiaries accounted for 44% of the group’s revenue and an operating profit of $35 000 in 2013. The foreign subsidiaries include PXL Freight and Logistics South Africa, Pioneer Clan Botswana and Mavambo Coaches (South Africa).
Chingoka said local subsidiary, Pioneer Transport contributed in the main to operating loss and this resulted in a change in management.
Passenger business operations continue to be affected by depressed bus fares due to prevailing economic and environment challenges.
The group is optimistic that the economy will improve in the medium to long-term and the company is preparing to take advantage of that improvement.
“We also continue to look to the region for expansion and growth potential, with Zambia certainly being one of the more promising markets that we are looking to penetrate in 2014 as well as continuing to increase our footprint in Botswana,” he said.