Zimbabwe Stock Exchange listed company Power Speed Electrical Limited recorded a turnover of $53.9 million for the year ended 30 September, a 30% increase from the same period last year due to increased sales of lower margin locally manufactured building materials.
According to the group, chairman Simba Makoni, despite the significant increase in volumes, operating expenses remained well controlled, increasing by 5%.
"Despite the significant increase in volumes, operating expenses remained well controlled, increasing by 5%, from $10.9 m to $11.5 m.
"This resulted in a 63% increase in EBIT, from $1.4 m to $2.3 m.
"Finance costs for the year fell marginally, from $861 k to $845 k, resulting in a profit before tax of $1.46 m, compared to $559 k, for the previous year," said Makoni.
He added that income attributable to shareholders more than doubled from $450k to $1.1 million during the reporting period.
"Finally, income attributable to shareholders came in at $1.1 m, significantly up from $450 k, for the last financial year.
"During the year, we purchased the premises which houses our branch in Mount Pleasant. The facility arranged for this purchase, together with the increased facilities for the purchase of stock, had the effect of increasing our borrowings year on year, from $7.1 m to $9.5 m.
"Significant expansion was carried out in Victoria Falls, Gweru and Avondale in Harare. With these expansions, our total retail floor space crossed the 10 000 square metre barrier.
"In addition to these expansions, we opened a small branch in Pomona, Harare, specifically to avail building materials to Northern Harare.
"This new branch has proved to be quite successful, and we will be opening a new large branch, a few hundred metres east of this site, along Harare Drive, before the end of this year.