Powerspeed Electrical Group Quarterly Results for First Quarter ending 31 December 2021
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
