- Company seeks to enhance its procurement processes through the sourcing of best products for its market
- Limited size of Company’s market and the various barriers have affected progress
- Engineering division increased its range of products manufactured
Harare – Electrical retail and engineering company, Powerspeed made progress in the improvement of its Electrosales Hardware brand and outlets in the half year ended 31 March 2020 despite various barriers.
In a statement accompanying its half year financial results, the Company stated that it has been on a path to enhance its procurement processes through the sourcing of the best products for its market from the best manufacturers locally and globally, with preference being given to local manufacturers where possible.
The Company said it has however found this to be an extremely difficult task due to the limited size of its market and the various barriers such as import licenses, high import duties, Bureau Veritas, corruption, et cetera.
“Despite this, we have continued to make progress, and we have been able to pass the benefit to our customers”, Powerspeed stated.
In addition to sourcing, Powerspeed said it has been continuing to improve its internal stock management systems to ensure maximum stock availability in all branches while striving to use both retail space and working capital optimally.
The Company has also been increasing the floor space and improving the display of products in branches while improving the quality of its staff in order to make the customer experience even better.
Powerspeed’s engineering division was able to increase its range of products manufactured and subsequently sold through its retail outlets thereby improving the future prospects of the division.
Following the shutdown of business operations as part of measures to curtail the spread of COVID-19, the Company has subsequently re-opened, and although volumes have not recovered to where they were before the shutdown, they have bounced back surprisingly well.
“Supply lines have been disrupted, but are steadily re-opening and recovering. In the meantime, our substantial buffer stocks have been able to satisfy the reinstated demand. It is still too early to be definitive, but it does appear that volumes have already recovered sufficiently to return us to profitability”, the Company said.
Despite the expected shrink of Zimbabwe’s economy, Powerspeed believes that it is well placed to continue its march to growing market share, and thereby grow shareholder value.
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