Powerspeed Group Quarterly Results for First Quarter ending 31 December 2022

COMMENTARY

Trading Update

Trading recovered during the quarter under review as compared with the previous quarter, which was not good. The group traded profitably resulting in an 8.7% growth in Shareholders’ Funds during the quarter.

Inflationary pressures continued to push up the real costs of basic household expenses resulting in reduced disposable income and therefore less expenditure generally, including hardware products effectively shrinking the potential market. The resultant shrinking market has increased competitive pressures as we all fight for our share and inevitably means shrinking margins.

Controls limiting pricing ratios between ZWL and USD continues to make it expensive for customers with USD to purchase from formal retailers such as ourselves. This is a further incentive which is driving business from formal to informal trade, this is having a negative effect on all formal retailers, and we are no exception.

Shortages of locally made products in general, but in particular cable, also had a negative impact on our business. Despite all these difficulties, trading volumes were up on the prior year and profitability was steady.

In December 2022 we opened our newest and biggest branch in Avondale in Harare and the throughput there has been pleasing. As always, we will continue to pursue new markets, expand our branch footprint, and develop our sourcing of products directly from the best manufacturers globally.

We are confident that the economic future of Zimbabwe is positive, given the anticipated investment in mining, steel production and agriculture amongst others. As a result, we are very optimistic about our prospects for the future.

GROUP REVENUE

By Order of the Board

M. S. Gurira
Company Secretary
February 2023