Fleet re-capitalisation boosts Unifreight’s balance sheet

LOGISTICS group, Unifreight Africa Limited chairman, Mr Peter Annesley is upbeat that the additional 50 trucks as part of re-capitalisation drive will pay dividends as the market is availing additional volume to the firm.

Mr Annesley is of the view that the substantial re-capitalisation will go a long way towards diluting the fixed cost overhead of the business.

In a statement accompanying abridged audited financial results for year ended 31 December, Mr Annesley said while a number of macro-economic changes to the operating environment weighed down performance, there were a number of positive developments that will impact on Unfreight growth.

“Among the challenging macroeconomic conditions Unifreight managed to secure a very attractive instalment sale agreement from a foreign creditor resulting in the re-capitalisation of 50 brand new FAW 380hp prime movers with 50 AFRIT taut-liner trailers.

“This substantial re-capitalisation will go a long way towards diluting the fixed cost overhead of the business.”

On financial performance, the transport firm made a loss of $1,50 billion in the period under review which was largely driven by the group’s shareholding in Zimplow which declined by ZW$2,16 billion during 2022 driven by the inflation adjusted re-valuation of historical value.

Revenue from continuing operations grew by 31 percent to $14,4 billion.

The firm’s balance sheet grew from $13,1 billion to $18,6 billion due to the re-capitalisation of the fleet.

Meanwhile, directors have decided not to declare a dividend for the period under review as they continue to assess the economic environment.-chronicle