Powerspeed on aggressive expansion plans
POWERSPEED Electrical Ltd, trading on the over-the-counter (OTC) market, has lined up aggressive expansion plans, targeting 44 000 square metres (m2) of retail space, to boost sales volume by 90% in the next five years, businessdigest can report.
The firm, which is a leading supplier of electrical, hardware, building and home improvement products and services trading through its own chain of hardware retail outlets, known as Electrosales Hardware, boasts of 22 branches and a retail space of 22 080m² across the country.
On December 18, 2020, Powerspeed voluntarily delisted from the Zimbabwe Stock Exchange and started trading on the OTC through Fincent Securities from January 2021.
“Powerspeed plans to double its retail space to 44 000m² and boost sales volume by 90% in the next five years, tapping into the country’s booming construction sector,” Fincent Advisory said in an investor deck for the company. “Net asset value has risen from US$0,09.07 in March 2022 to US$0,12.46 in December 2023, reflecting the company’s upward trajectory.
Trading on the OTC market, Powerspeed aims to enhance liquidity for its shares, offering investors the chance to actively trade.
“With settlement in US dollars, Powerspeed Electrical presents a compelling opportunity for investors looking to ride the wave of growth in the construction sector,” it said.
Revenue stood at US$109 million, up 24,6%, while operating profit margin increased by 10,4% to US$11,3 million. The company registered profit after tax of US$8,2 million.
The figures are based on the company’s
December 2023 audited abridged consolidated financial statements, whose Zimbabwe dollar numbers were translated to United States dollars by Fincent Advisory’s internal exchange rate estimates.
After opening its 22nd branch in 2024, the company aims to expand its retail operations by strategically opening new Electrosales outlets in high-potential locations across Zimbabwe in towns, like Bindura, Karoi and Gwanda.
The company’s aim, according to Fincent, was to increase the trade area of current sites, such as Bulawayo-plumtree Road, Victoria Falls, Kwekwe and Gweru. This expansion will help it reach a broader customer base and capture market share in untapped regions.
“Powerspeed Electrical is actively pursuing strategic partnerships and alliances with suppliers, manufacturers and industry stakeholders to drive mutual growth. These collaborations may involve joint marketing efforts, exclusive product offerings, or shared distribution channels,” the investor deck reads in part.
“By establishing strong partnerships, Powerspeed aims to strengthen its market position, broaden its product portfolio, and capitalise on synergistic opportunities.”
Powerspeed is looking to boost its edge by branching out into new areas like financial services and liquified petroleum gas retail, alongside its existing focus on electrical, hardware and home improvement sectors.
“By keeping a close eye on market trends and customer preferences, the company aims to add new products or services that fit well with its current line-up. This strategy helps Powerspeed meet a wider range of customer needs and tap into new market segments,” it said.
“This growth highlighted their continuous efforts to enhance the shopping experience for their clientele. Electrosales' success can be attributed, in part, to the strong and loyal partnerships they forged with many large companies.
“These collaborations allowed the company to offer an extensive product range of over 15 000 lines, covering areas such as painting, plumbing, electrical, building, hand and power tools, outdoor, gardening, automotive, and more.
“By diversifying their offerings, Electrosales became a one-stop shop for various home improvement and DIY (do it yourself) projects.”
The investor deck noted that Zimbabwe’s growing economy and expanding construction sector present opportunities for Powerspeed to capitalise on the increasing demand for electrical, hardware, and home improvement products.
The company can leverage its strong market presence and diverse product range to capture a larger market share.
There is growing interest and investment in renewable energy sources in Zimbabwe. This provides an opportunity for the company to increase its product offering of solar panels, energy-efficient products, and other renewable energy solutions to meet the increasing demand.