leeroy mupariri
Business Reporter
Powerspeed Limited recorded a 13,15 percent surge in profit to US$4,3 million for the year to September 30, 2024, reflecting robust performance despite economic challenges during the year under review.
The profit followed revenue of US$128 million compared to US$127, million in the same period last year.
Shareholder equity registered substantial growth, closing the year just shy of US$50 million from US$49,3 percent.
Chairman Victor Gapare, in the statement of financials for the year, attributed the company’s success to strategic initiatives and operational resilience.
“Our focus remains on growing shareholder equity and delivering long-term value,” Mr Gapare emphasised.
During the year, Powerspeed expanded its footprint following the opening of the Madokero branch in May 2024.
However, the group prioritised optimising its existing branch network, with much of the growth driven by the building materials segment.
The surge underscored the need for additional space in several branches, a challenge the company is actively addressing through expansion and more efficient utilisation.
Recognising a gap in its product portfolio, Powerspeed launched a new division, Electrosales Timber, to cater to the growing demand for timber and related products.
Mr Gapare noted, “The creation of Electrosales Timber marks a significant step in diversifying our offerings.
Although still in its infancy, this division holds immense potential, and we are investing in a timber processing plant in Mutare to add value and expand our product range.”
Maintaining reliable product supplies remained a critical focus area.
Despite challenges, the company successfully expanded its offerings to meet customer needs.
Powerspeed’s “Benefits Card,” launched in November 2023, has gained significant traction, with over 90 000 registered customers.
A “Business Trade Card” targeting trade customers is set to launch soon.
Access to capital continues to be a pressing issue for Powerspeed, with Zimbabwe’s financial institutions grappling with liquidity constraints and high interest rates.
Powerspeed said clarity over the country’s functional currency and the future use of the US dollar post 2030 complicated long-term borrowing for expansion projects.
Despite these hurdles, Mr Gapare reaffirmed the company’s commitment to excellence and growth.
“We remain steadfast in our pursuit of delivering exceptional service and value to our customers.
“By sourcing products from the best global suppliers, we can offer competitive pricing and quality, enabling us to grow our market share even in a challenging environment,” he said.
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