BY FIDELITY MHLANGA
Listed hardware retail chain, Powerspeed Electrical seeks to embark on a branch expansion drive to consolidate its market share.
Speaking at the company’s annual general meeting last week, Power speed chairperson Simba Makoni (pictured) said the company would continue to invest in expansion despite the tough economic environment.
He said the company was targeting to open four new branches this year.
“We are looking for better premises in Chinhoyi, Chitungwiza and Bulawayo and we are feeling sufficiently confident that we can do business even in this environment,”Makoni said.
“… We have already submitted papers to our banks. It’s a hope that way we will continue to get forex through banks,” Makoni said.
The company’s chief executive Hilton Macklin toasted to a recent move by the central bank to liberalise the exchange rate.
The firm requires at least $800 000 of forex per month.
“Looking into the future, I think all of us are still bewildered by the implications of the monetary policy statement and exactly what that is going to mean to all of us. We are in favour of being in control of our monetary future, but exactly how that’s done remains to be seen,” he said.
Giving a trading update for the first five months of its financial year, Macklin said the disturbances in the months of October and January had a negative impact on business, but volumes were up by 10% year on year.
“After all, we had an overall increase of volumes of about 10% year-on-year for the period. Obviously there was a disruption of trading in October and also in January, which has had a negative impact to where we stand. I think our point of view is that we have thrived in an environment that we have been in a loss, but yes, primarily because of our responsiveness to the situation and our ability to cope to the situation,” said Macklin.
During the year ended September 2018, the company’s profit after tax grew to $4,2 million from $1,092 million reported the previous year.