Powerspeed FY profit doubles to $1,1mln

Powerspeed FY profit doubles to $1,1mln

HARARE, December 7 (The Source) – Electrical goods manufacturer and retailer, Powerspeed’s after tax profit more than doubled to $1,1 million in the full year to September from $454,471 in the previous year on increased revenue.
Revenue rose 30 percent to $53,9 million from $41,6 million in the previous year on higher volumes.
“Revenue did not increase because of inflation, but there has been a volume increase mainly from building materials and so forth,” chief executive Hilton Macklin
Operating expenses increased by 5 percent to 11,5 million from $10,9 million in the previous year.
Earnings before interest and tax (EBIT) rose 63 percent to $2,3 million from $1,4 million previously.
Borrowings increased to $9,5 million from $7,1 million previously attributable to the purchase of an additional premise and increased facilities for the purchase of stock.
Total assets increased to $27,7 million from $21,4 million in the previous year mainly due to an increase in inventory held by the group to curb shortages.
However, Macklin said foreign payments challenges continue to humper operational efficiency as the group imports 50 percent of its products.



The group expanded its retail space to over 10,000 square metres in the period and is waiting to open a new branch at Pomona.
“We continue to grow our market share and maximising existing outlets to improve our product availability and service,” Macklin said.
The company did not declare a dividend.