Powerspeed Electrical sparks growth with bold entry into timber market
POWERSPEED Electrical Limited has launched a new division, Electrosales Timber, as it expands its business to tap into new market opportunities. The company sees significant potential in the sector and expects strong growth in the coming years.
Group Chairman, Mr Victor Gapare, said the firm has invested in a timber processing plant in Mutare to support value addition and the production of a variety of timber products.
“One significant gap in our product offering has been timber, and a decision was made to rectify this. During the year, we created a new division called Electrosales Timber, and we have begun trading in timber and related products,” he said in a statement accompanying the group’s 2024 annual report.
“Although still small, we can see the potential and expect significant growth over the coming years. We are investing in a timber processing plant in Mutare, which will facilitate value addition and the production of a variety of timber products,” he added.
During the reporting period, the group opened only one new Madokero branch, which launched in May 2024, with the focus remaining on maximising the performance of the existing branch network.
“However, much of the growth came from building materials, which highlighted the lack of space in several of our branches. Efforts are underway to address this shortcoming through expansion or more efficient utilisation of the space available,” said Mr Gapare.
Despite operational challenges, he stressed the company’s commitment to excellence.
“We firmly believe that our diligent drive for sustained improvement is the only thing that will enable us to maintain our position as the leading hardware supplier in Zimbabwe. Our ability to source products from the best global suppliers allows us to deliver exceptional quality and competitive pricing to our customers,” he said.
“We continue to rely on this strategy to increase our market share, even in an environment heavily biased towards informal businesses. We believe that there is no alternative to offering our customers excellent service and value for money. By doing so, we will retain existing customers and capture new ones,” Mr Gapare added.
“Further, this growth in market share will drive our future profitability, despite the difficult economic environment.”
He noted that the company’s solid performance over the past year enabled it to declare a dividend of US$3,74 per share for the 12 months ending September 30, 2024. This dividend is payable to shareholders on the register as of January 10th.
Meanwhile, the group reported a profit of US$4,3 million from a turnover of US$128 million. However, the primary focus remained on growing shareholder equity, which closed the year just shy of US$50 million.-ebsinessweekl
