Published: 16 June 2014

A SHIFT towards retail trading paid off for Powerspeed Electrical with the company recording a nine percent growth in turnover for the six months ended March 2014.

Turnover for Powerspeed Electrical for the half year to March rose to $16, 6 million from $15,2 million recorded in the same period the prior year.

"Trading now constitutes the bulk of the group's business operations and most resources are being directed at retail," the company said in its financial statements.

Powerspeed Electrical has expanded the Electrosales Hardware brand by increasing the number of branches, the size of the branches and the range of products on offer.

The expansion of retail capacity also raised expenses for the period by 7,3 percent to $4,4 million.
Profit after tax increased to $411 000 from $229 000.

In the full year to September 2013, Powerspeed recorded a turnover of $29 million.

Powerspeed said non-retail trade, which includes sales to industry, construction, contractors and other re-sellers remains constrained by the poor state of the economy.

Engineering operations contribution to profits has become less significant although it contributed to profits.

"We are confident that our strategic direction is correct under the prevailing circumstances.

The fact that we have been able to grow both topline and bottom line performance in the current economic environment, gives us confidence to continue to build on the base that we have established," Powerspeed said.
- The Herald

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