Zimbabwe Stock Exchange-listed company Powerspeed Electrical Limited, turnover for the six months ended March 2018 increased by 55.3% and they were also able to lift their gross margin slightly, from 26.3% to 28.1%, through improved sourcing.
According to the group Chairman Simba Makoni, operating expenses grew by 37.6%, driven by the branch expansion program.
“Operating expenses grew by 37.6%, to $7.4 million, driven by the branch expansion program. The net result of which was a 180% increase in operating profit, from $1.19 million to $3.32 million.
“Borrowings remain significant, at $9.9 million, as a result, finance costs increased by 39.6%, to $566.000. However, given our recent investments in property and in inventory to feed the growth in throughput, we believe that this level of borrowings is less concerning than in previous years,” he said.
He added that profit after tax came in at just over $2 million, significantly up from the $581.000
“Attributable profit after tax came in at just over $2 million, significantly up from the $581.000 reported for the corresponding period last year.
“During the period under review, we have seen an increase in throughput, which has resulted in an improved contribution from the Division. The improved levels of business optimism and activity, particularly in mining, are steadily improving demand. As a result, throughput and profitability in the operation grew from $888 000 to $1.4 million, and $52 .000, to $216 000, respectively,” he said.
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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.