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.