HARARE, April 5 (The Source) – Unifreight reported a net profit of $1,7 million for the year ended December 2016 from a net loss of $4,2 million in the preceding year after restructuring its business model and an aggressive cost cutting exercise that saved over $5 million.
Notwithstanding a 4,5 percent decline in the group’s revenue from continuing operations of $23,8 million from $24,97 million recorded in the preceding year, profit before tax from continuing operations improved to $88,000 from the previous loss of $3,1 million on decreased overhead costs.
Chairman Patrick Chingoka said overheads fell by $5,176 million from the previous year on the back of the restructuring and cost reduction exercises in 2015.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased to $4,1 million in the period from $55,000 achieved in 2015.
Chingoka said the group made a profit of $3,407 million from the deconsolidation of Tredcor Zimbabwe (Private) Limited, which was included within the profit for the year from discontinued operations.
Net cash generated from operations improved greatly to $2,7 million from a negative $8,3 million recorded in the previous year.
Total assets decreased by 11,5 percent from $35,9 million in the preceding year to $31,7 million following the deconsolidation of Tredcor Zimbabwe (Private) Limited.
The group reduced its borrowings significantly to $3,96 million from $9,26 million recorded in the previous year.
The group did not declare a dividend.
Chingoka said going forward, the group will continue to invest in new vehicles and rigorously pursue new revenue streams while containing costs.
The group expects revenue for the 2017 financial year to increase by six percent.