Powerspeed Electrical Quarterly Results for the Third Quarter ended 30 June 2021

TRADING UPDATE

Satisfactory customer service levels were maintained during the quarter under review and Shareholders’ Funds grew by 3.5 % in the quarter in real terms.

We continue to mitigate the impact of COVID-19 through compliance with best practice and regulatory COVID-19 protection measures although the business continues to be negatively impacted through reduced trading hours and curfew-impacted staff availability.

Margins have been negatively impacted during the period as a result of real increases in commodity prices, significant logistics cost increases and an increasingly competitive hardware market, both formal and informal.

Increasing lead times being experienced by global, regional and local supply chains has affected working capital management efficiency.

Despite these challenges, trading volumes remained strong and profitability steady, as a result of a boom in domestic construction and diaspora remittances.

We are mitigating an increasingly competitive industry by continuing to pursue new market segments, widening our branch footprint, and expanding global sourcing of all products directly from the best manufacturers.

Management is focused on increasing stock levels to mitigate supply chain difficulties within the constraint of our financial resources.

GROUP REVENUES

Quarterly Historical Group Revenue

By Order of the Board

M. S. Gurira
Company Secretary