COMMENTARY
Trading Update
Business went ahead steadily during the quarter under review with the group trading profitably resulting in a 2.5% growth in Shareholders’ Funds during the quarter.
We continue to follow best practice and legislative COVID-19 protection measures to mitigate risks of the pandemic.
However, the effects of the pandemic on the business declined significantly as trading hours returned to normal.
Margins continue to be under pressure because of real increases in product prices, significant logistic cost increases and more particularly, an increasingly competitive hardware market, both formal and informal.
Increasing lead times being experienced by global, regional and local supply chains has had a significantly negative affect on working capital management efficiency.
Despite all the difficulties highlighted above, trading volumes remained relatively strong and profitability steady. We believe that this primarily as a result of a boom in domestic construction and diaspora remittances.
We continue our multifaceted response to the increasingly competitive environment by pursuing new market segments, widening our branch footprint, and expanding sourcing of products directly from the best manufacturers globally, wherever they may be.
By Order of the Board
M. S. Gurira
Company Secretary
February 2022
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Powerspeed Electrical is a leading supplier of electrical products and services; trading through its own chain of hardware retail outlets known as Electrosales Hardware. The company supplies electrical products and solutions to the painting, plumbing, electrical, building, hand and power tools, outdoor and gardening, and automotive industries in Zimbabwe. Powerspeed Engineering is a subsidiary company involved in rewinding electric motors, supplying industrial fans and ducting for commercial and industrial applications, fabrication of non-standard steel products and structures, and commercial and industrial light fittings, heating elements, distribution boards and domestic irons. The engineering division is the amalgamation of three leading industrial engineering companies; Airflow, Relmo and ELS.
