Unifreight suffers H1 $1,2mln operating loss, says tough times ahead

Unifreight suffers H1 $1,2mln operating loss, says tough times ahead

HARARE, September 30 (The Source) – Logistics and passenger transport group Unifreight Africa on Wednesday said its half-year to June operating loss worsened to $1,2 million compared to $476,000 last year as restructuring costs spiked.

The group, formerly Pioneer Africa Corporation, closed its Botswana subsidiary last year and is disposing of Pioneer Transport to its employees through a management takeover.

The cost of ceasing the Botswana unit amounted $82,000.

Pioneer Coaches suffered losses of $390,000 while another entity, Tredcor incurred losses amounting to $603,000.

Finance costs increased from $78,000 the previous year to $196,000.

“The group is fundamentally sound but is facing some very tough times ahead with a downturn of the economy. Management has committed to continue to streamline and align costs throughout the remaining operations,” said group chair Patrick Chingoka in a statement.

Revenue during the period under review was down 35 percent at $5,6 million resulting in an after tax loss of $2,3 million which includes $1,1 million from discontinued operations.