daniel chigunwe
Business Writer
Powerspeed has reaffirmed its commitment to growth and diversification, after closing the year ended September 30, 2024, with a profit of US$4,3 million up from US$3.8 million and a turnover of US$128,6 million up from US$127,9 million.
The company’s shareholder equity grew to US$49,8 million from US$49.3million, underscoring a strategic focus on long-term value creation.
Victor Gapare, the Board Chairman, emphasised growth as the company’s driving force. “Our performance this year reflects our unwavering focus on expanding shareholder equity and building a resilient foundation for future growth,” he stated.
In line with its growth strategy, Powerspeed opened a new branch in Madokero in May 2024, adding to its robust retail network. While the company has been cautious with physical expansion, it has aggressively sought to maximise the potential of existing branches.
A key driver of growth during the year was the building materials segment, which revealed opportunities for further spatial optimisation across branches.
Recognising untapped market potential, Powerspeed launched Electrosales Timber, a new division dedicated to timber and related products.
“The establishment of Electrosales Timber is a game-changer for us,” Gapare remarked. “Although it is still in its early stages, we see tremendous potential for growth. Our investment in a timber processing plant in Mutare will allow us to add value and expand our product range significantly.”
The company also reported impressive traction with its retail “Benefits Card,” introduced in November 2023, which has registered over 90 000 customers. This initiative not only strengthens customer loyalty but also positions the company for sustained growth.
A “Business Trade Card” tailored for trade customers is set to launch soon, further enhancing customer engagement.
Powerspeed’s growth efforts have not been without challenges. Access to capital for expansion remains a critical hurdle, with local financial institutions constrained by liquidity issues and high interest rates.
Despite these obstacles, Gapare expressed confidence in the company’s ability to adapt and thrive. “Our commitment to growth is unwavering, even in the face of economic headwinds,” he said.
“We continue to source the best products globally to deliver exceptional value to our customers, which remains central to our strategy of increasing market share and driving profitability.”
Looking ahead, Powerspeed is doubling down on its growth ambitions. The company plans to expand its product offerings, optimize branch operations, and strengthen its market position as Zimbabwe’s leading hardware supplier.
Gapare highlighted the company’s growth-oriented approach, “We believe that offering superior service and value is the key to retaining existing customers and attracting new ones. This strategy will not only drive market share growth but also ensure sustained profitability in the years to come.”
In a testament to its strong performance, the Board declared a dividend of USD 3.74 per share for the 12 months ending September 30, 2024. The dividend will be payable to shareholders on the register as of January 10, 2025.
As Powerspeed continues to navigate economic uncertainties, its focus on growth and innovation positions it to seize opportunities and deliver value to its stakeholders. “We remain fully committed to our growth strategy and will continue to apply ourselves wholeheartedly to achieving our objectives,” Gapare concluded.
With its sights set firmly on expansion and diversification, Powerspeed is poised to build on its success and maintain its leadership in Zimbabwe’s hardware sector.
Bongani Ndlovu