Powerspeed Blames Unpredictable Covid-19 Regulations On Low Sales

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By Alois Vinga

ZIMBABWE Stock Exchange (ZSE) listed leading supplier of electrical, hardware and home improvement products, Powerspeed Electrical has bemoaned the unpredictable Covid-19 regulations for severely affecting performance.

In a recent trading update the firm said the manner in which the Covid-19 regulations are being implemented affected the smooth flow of business.

“The trading environment remains extremely difficult with regulation changes without notice or consideration for the consequences. Travel restrictions have made it difficult for staff to travel to work and in many instances, the group has had to provide contracted transport at a substantial additional cost,” the company said.

The entity said volume performance throughout the quarter has been erratic with the national shutdown in April having reduced to almost zero for the greater part of the month.

The company said Zimbabwe has been through periods of extreme uncertainty in the past but highlighted that the economy is going through a period of greater uncertainties than ever before making it extremely difficult to predict the future performance of the group.

Despite the government having moved to open up the economy thereafter by easing the lockdowns, the government announced other measures introducing curfews last month.

Commuting through public transport has been very difficult and oftentimes security forces turn away citizens without notice.

During the quarter under review Powerspeed raked in net revenues of $1.1 billion in inflation adjusted terms. The engineering unit injected $23.8 million while the retail sector churned in $1 billion.

“While revenue rose substantially both in historical and inflation adjusted terms, profitability remains difficult to assess because of rapidly changing exchange rates and distorted indices. Margins continue to be under pressure while expenses are rising with inflation and devaluation,” added Powerspeed.