Powerspeed posts strong FY2021 performance
RYAN CHIGOCHE
Hardware and electrical goods supplier, Powerspeed Electrical Limited, has posted a strong financial performance in the year to September 30, 2021 on the back of huge investment in inventory and expansion of branch network, Business Times can report.
Revenue for Powerspeed, which delisted from the Zimbabwe Stock Exchange in December 2020, grew 301% in the 12 months to September 2021 to ZWL$8.7bn from ZWL$2.2bn achieved in the prior comparative period.
Profit for the group increased 154% to ZWL$154m in the reviewed period from ZWL$61m reported in the same period in the previous year.
Board chairman Simba Makoni said the past year continued to be extremely challenging and the Covid-19 lockdowns and restrictions remained hugely disruptive.
“Despite the difficulties, the group had a reasonably good year, with volumes traded increasing, compared to prior year. Investment in inventory and improved quality of our branch network, drove this growth, and helped us increase our market share,” Makoni said.
He said the company was pinning hopes on home builders and also global procurement of quality products as they seek to maintain and increase sales volumes as well increasing their market share in a business environment dominated by informal traders.
“Zimbabwe has the attribute and fortune of a national culture of investing in new homes, and home improvement. This culture constantly brings customers to our sector, and our business,” Makoni said.
Makoni said Electrosales embarked on an expansion drive. The subsidiary of Powerspeed opened its 20th branch in the Bulawayo central business district in November 2020.
More so the group relocated its Mutare branch to considerably larger premises in November 2021.
Makoni said the company was praying for a ‘’credible and consistent’’ economic policy which will result in a normal economy.
