POWERSPEED Electrical Limited posted an increase in profit after tax to $410 822 in the six months ended March 2014 compared to the same period last year attributed to a decline in finance costs.
BUSINESS REPORTER
In the same period last year, the group recorded profit after tax of $228 509. Finance costs declined to $288 458 in the period under review from $312 648 last year.
In a statement accompanying the financial results, the group said its performance had changed despite the worsening macro-economic conditions in Zimbabwe.
“These results are a confirmation that we have selected the right strategies and they reflect the tireless and dedicated efforts by management and staff to make things work irrespective of the external environment,” the group said.
The group recorded a 9% increase in turnover to $16,6 million compared to the same period last year while expenses rose to 7,3% to $4,4 million due to the expansion of the retail capacity.
During the period under review borrowings for the group increased as the group was funding stock in line with the expansion programme.
Borrowings that were secured were valued at $2,8 million against stocks and debtors while the rest were unsecured.
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The group said trading now constituted the bulk of the group’s business operations and most resources were directed towards the retail operations.
“Non-retail trade, which includes sales to industry, construction, contractors and other re-sellers remains an important part of the group’s trading operations but remains severely constrained by the poor state of the economy in general and businesses in the formal sector,” the group said.
The group’s engineering operations contributed less significantly to the overall picture although they contributed profits during the period under review.
For the full year ended September 2013, the group recorded a profit of $466 000 compared to $535 000 in 2012 while turnover was marginally down to $28,6 million from $29,2 million.
The company’s operations include Relmo, WST, Electrical Lighting Supplies, Electrosales, Industrial electric, Electrocables and H&E Distribution and Airflo.
