Aggressive marketing, recapitalisation, buoy Pioneer

The improved financial performance came on the back of a 16 percent jump in revenue to US$26.4 million as Pioneer's foreign subsidiaries - Pioneer Transport South Africa, Pioneer Clan Botswana and Mavambo Coaches South Africa - contributed 84 percent of the inflows in the period under review.

Pioneer chairman Patrick Chingoka said the rise in revenue was a result of last year's aggressive marketing strategies that brought lucrative contracts. Pioneer also benefited from to the recapitalisation programme that enabled it to acquire new buses and trucks. Last year's recapitalisation drive also resulted in renewed customer confidence in Pioneer's brands. Chingoka said that the improving economic performance was expected to buoy the transport and logistics group's operations this year.

According to Allafrica.com, Pioneer's service portfolio was strengthened further by the acquisition of assets and brands of Unifreight Swift for US$7.2 million in a deal also meant to restore the group's position in the consolidated business. While shareholders approved the deal, some of the regulatory approvals were yet to be secured, Chingoka said, adding that subject to approval by the regulators, Pioneer will issue 514 974 875 shares of US$0,001 each for a purchase consideration of US$4 million.

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