ELECTRICAL hardware and home improvement products supplier, Powerspeed recorded improved volumes uptake in the year to September 2021, compared to last year despite the turbulent operating environment spawned by lockdowns.
The group says it had a sensibly good year, as reflected by investment in inventory and enhanced quality of branch network which all contributed to a growth in market share.
In the period under review, the group’s subsidiary, Electrosales was on an expansion drive as it opened its twentieth branch in the Bulawayo CBD in November 2020.
As well, the group relocated its Mutare branch to considerably larger premises in November 2021.
However, just like any other business Powerspeed indicated that reduced operating hours were detrimental to the company’s operations.
Powerspeed said due to Covid-19 induced lockdowns, supply lines endured major disruptions resulting in most of its local suppliers being unable to meet demand.
Further, the period saw a constant increase in local product prices in response to domestic inflation and exchange rate distortions.
“Despite the above difficulties, the Group had a reasonably good year, with volumes traded increasing, compared to the prior year.
“ . . . restrictions, regulations, and disruptions related to the Covid-19 pandemic, caused great difficulties in our operations. Reduced operating hours meant trying to do more in less time, exposing both staff and customers to increased risk,” said Group Dr Simba Makoni in the statement of the financials for the period under review.
On the other hand, Dr Makoni said his company was anchoring its business on constant individual home construction and renovations culture in the country.
He indicated that the group was banking on policy consistency on the part of relevant authorities in order to inspire confidence and stability in the economy.
“As a business, we pray and hope for a credible, coherent, consistent, and sustainable macro-economic policy framework and regulatory regime, within which the economy can operate normally, and confidently plan for the future.
“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. We strive to support this culture, by offering a broad range of value for money home development and home improvement products,” said Dr Makoni.
Despite de-listing from the Zimbabwe Stock Exchange on 14 December 2020 Powerspeed’s revenue for the year to September grew to $8, 7 billion from $2, 2 billion while profit for the year stood at $154 million from $60, 6 million compared to the same period last year. – Herald