Precision Air Publicizes Yearly Financial Results
Precision Air, the only airline bin Tanzania’s cited on the stock exchange of Dar es Salaam, has recently announced their yearly result for last financial year that ended on 31st March.
As legacy liabilities together with other remarkable one-off factors, this company saw a general remain in the loss-making area, with an enhanced bottom-line from the red-figures from the records from the previous year of Tanzania shillings 30.1billion to only 12.1 billion Tanzania shillings.
On the other hand, a practical profit of 3.6billion TShs measures up very well with a loss of the earlier accounting time of 18.1billion, a growth of more than 120% every year, proof that the turnaround of profits for Precision is now ongoing.
With a number of the cost-saving procedures started by the present management team led by Ms. Sauda Rajab simply anticipated to show a complete impact throughout the financial year of 2014/15, it is anticipated that the airline will go back to the profit region either at the close of this or in the next accounting phase. In this year, the direct expenditure financial savings of 48billion Tanzania shillings were verified, whereas indirect expenditure financial savings were placed at 5.6billion TShs, the latter mainly because of a couple of structural reorganization.
Two main loss-factors were terminated, the leases for 2 B737-300 aircraft plus the loss-making routes to Lusaka as well as Johannesburg terminated scrapped, whereas all the domestic services are currently operated using the ATR aircraft belonging to the airline. As the whole ATR fleet, consists of the -42 and -72 models, is at the moment owned, actually plans are being completed to sell as well as lease back a number of these aircrafts, which were obtained completely new from manufacturers from France.
The yearly audit was conducted by Price Waterhouse Coopers - PWC, leaving no question on the exactness of the monetary results declared by the Board of Directors of the company.
Extra information obtained about the way forward for Precision Air as well verifies the departure from the dedicated expansion course sought by the former Chief executive officer that largely overlooked the facts on the ground.
The Group anticipates finishing its turnaround plan in time in order to exploit the gains obtained a year ago.
The Sale and Lease back of a number of aircraft is going to be pursued so as to cut down the borrowing, better cash flow as well as cost of financial capital.
Over the following year this group will mainly concentrate on offering profitability plus liquidity through increasing revenues and also keeping costs at sensible levels. This company will predominately concentrate on the following:
• Improved customer service in all customer points within their operations.
• change the whole network as well as work on the HUB & SPOKE strategy in order to maximize possibilities to obtain more passengers to use their lights and hence generate extra revenues on the present fleet.
• assess the existing levels of skill of their staffs and possibly upgrade it by coaching or training; or through recruitment of the appropriate people in the appropriate places.
• Tight plus continuous attention on cost control throughout all their functional areas.
• boost partnership portfolio as well as sign up additional Special Prorate Agreements - SPA's, joint ventures JV's plus code shares hence raise the volume of passenger revenue.