Categories: Stories

Clan poised for significant growth

Clan Holdings, whose aim is to become the preferred transporter within the Southern African Development Community (SADC) region, received a new lease of life when its profit for the six months to June more than doubled that for the whole of last year and was more than eight times that for the similar period last year.

The company said though the results were not exceptional, they perhaps reflected the first “signs of life” as a result of recent structural and policy changes within the group.

The group is presently negotiating the takeover of another transport group, Pioneer Development Corporation and the new holding company will be renamed Pioneer Corporation Africa.

Revenue for the six months was up from $495.4 million to $2.9 billion with gross profit at $1.3 billion, up from $160.8 million.

Profit attributable to shareholders increased from $57.6 million to $439.7 million. Profit for the whole of last year was $196.6 million.

The company says though revenue had increased by 481 percent, it managed to control cost of sales to 54 percent of revenue, down from 68 percent last year.

It also says it is relying less and less on associated companies. They contributed $177.5 million, up 196 percent from last year, but their contribution to total profit dropped from 70 percent last year to 33 percent.

“This highlights the group’s strategic refocus on its core business of consolidation, collection and delivery and its aim to become the preferred transporter within the SADC region over the next few years,” it says.

The company says it has integrated DD Transport hire into Clan’s new Contracts division which specialises in tailoring specific transport needs to strategic customers.

This business and the planned international consolidation under the Trek brand, together with the recently launched Cross City Courier business, should contribute more meaningfully to its profit in the coming period.

It says with its new fleet and management team, the expanded depot network, and the acquisition of Pioneer should see the company make significant growth in the period to December.

(45 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024