Dollarization helped company to improve

POWERSPEED managing director Hilton Macklin says the dollarization of the economy has helped the company to improve its operating capacity as evidenced by its performance during first quarter of the current reporting season.

Without giving figures, Macklin told analysts and journalists at the company’s AGM on Monday that Powerspeed was trading ahead of last year, despite a slow start to the year, with the Engineering business, which is geared towards mining, not performing to expectations.

The performance in the 1st quarter ended December was a “bit below” expectations, while profitability was above projections. The group would grow ahead of inflation in the year.

“The Trading side did better, while Engineering was a bit worse than expected. The situation since the end of December has been slow, and February a bit slower than expected, but we are also being firm on debtors by not increasing credit further, which has had an impact on turnover. There are some liquidity issues around and problems with investment.”

Macklin said they had opened an outlet in Mt Pleasant, which was “ahead of where we hoped it to be”. The Bindura branch had been closed, and Powerspeed was reviewing the countrywide branch network in some areas of the country.”

Post published in: Business

Leave a Reply

Your email address will not be published. Required fields are marked *