Tinashe Makichi
LISTED electrical engineering and retail concern, Powerspeed Electrical Limited, has questioned government’s commitment to deal with the current economic challenges.
Zimbabwe is facing rolling power outages, a weakening domestic currency, erratic fuel supplies and low business activity.
The company’s chairman, Simba Makoni said actions by the country’s leaders do not seem to reflect reality on the ground.
“It is difficult to tell where our country is going,” Makoni said.
He added: “Statements of, and actions by our leaders do not seem to reflect the reality of everyday experiences of citizens.
“The country yearns for a coherent, credible, macro-economic policy framework, and regulatory regime, within which economic agents can operate and plan for the future.”
In its financial statement for the year to September 30,2019, revenue for Powerspeed jumped 225% to ZWL$267.9m from ZWL$82,4m in the comparative period last year.
Gross margins rose 181.5% to ZW$L62.1m in the reviewed period from ZWL$22.1m.
The company’s operating expenses increased by 221.3% to ZWL$49.5m from ZWL$15.4m due to hyperinflationary pressures.
Earnings before Interest, Taxes and Amortization increased by 229.4% to ZWL$22.4 million, from ZWL$6.8m.
Finance costs for the company during the period under review rose marginally to ZWL$1.39m from ZWL$1.12m, resulting in a profit before tax of ZWL$21.0m, compared to ZWL$5.7m recorded in the same period in previous year.
Income attributable to shareholders stood at ZWL$17.6m, significantly up from ZWL$4.2m, for the last financial year.
Notwithstanding the uncertainties and instability in the market, Makoni noted that the company has found the hardware sector to be remarkably resilient.
“Understanding that financial/monetary savings rapidly waste away, the people opt to put any spare disposable incomes into their homes. We, in turn, will strive to support the people’s value preservation instincts, offering a broad range of value for money products, and providing our customers with excellent service,” Makoni said.
