eBusiness Weekly
Michael Tome
HARARE – Zimbabwe Stock Exchange-listed Powerspeed Electrical profit for the year up to September shot up by 285 percent to $4, 2 million from $1, 1 million recorded in the same period last year.
Powerspeed’s outstanding performance is resultant of growth in sales volumes as the company launched an aggressive drive in opening new shops leading to a total retail space of 12000 square metres country wide.
The company’s revenue grew to $82, 5 million from $53,9 million, a 53 percent upsurge in revenue as profit before tax jumped 288 percent to $5, 7 million compared to $1, 5 million during the same period last year.
Powerspeed credited the phenomenal growth in business to the introduction of flagship branches at Harare drive in Pomona and Village Walk, Borrowdale despite having an established branch nearby, which all led to surge in volumes uptake.
“The key strategy for the year was growth in sales volumes, with a resultant improvement in our purchasing power.
“During the year we continued our expansion program opening 1800 square meter flagship branch on Harare drive in Pomona .the branch’s performance exceeded expectations.
“We also opened a 300 square metre convenience store at Village Walk, Borrowdale despite being stone’s throw away from the existing Sam Levy’s branch and the store performed well,” said Powerspeed.
However the hardware retail chain bemoaned various trade barriers which led to an inadequate supply of products that also encompassed limitations on foreign payments.
“Erratic supply of both local and imported products continued to be the greatest challenge we faced during the past 12 months. Imports were hampered by various trade barriers, notably Bureau Veritas, import licenses, punitive duties and restrictions on foreign payments,” said Powerspeed.
