Powerspeed revenue surges 604pc

Powerspeed Electrical Limited says revenue for the half year to March 31, 2021 surged 604 percent to $3,65 billion from $518 million in historic terms on the back of increased volumes and product range despite the challenging operating environment.

The period under review, included the second national lockdown imposed in January, in response to the second wave of Covid-19.

Powerspeed was, however, among businesses classified as essential services, and therefore, allowed to continue operating during the lockdown period.

According to the group, gross margin improved to $663 million from $115 million.

Operating expenses climbed from $87,5 million to $538,9 million, giving an operating profit of $128 million, up from the previous $36 million.

Profit after tax rose 192 percent to $73 million, and this, combined with property revaluation lifted comprehensive income from $107 million to $549 million.

During the period under review, shareholder equity, grew from $1,7 billion to $2,2 billion representing 6 percent growth per share in real terms.

Total assets surged 271 percent to $3,2 billion.

At Electrosales Hardware, the group has continued building on the brand, which saw the opening of their 20th branch in Bulawayo.

Despite reduced trading hours due to Covid-induced lockdowns, the group continued to improve product availability across all branches, pushing volumes up.

“We believe that our business growth strategies are succeeding.

“The substantial increase in trading volumes, well ahead of the national growth rate, suggest that we are taking market share from competitors,” said company secretary Martin Gurira in a statement accompanying results.

According to the group, the engineering division performed particularly well during the period under review with focus on increasing the range of products manufactured in house, and subsequently sold through retail outlets.

This, according to the group, pushed volumes and profitability for the division.-ebuisnessweekly.co.zw