Powerspeed slows down sales to non-retail customers

Powerspeed Chairman Dr Simba Makoni, right, with Macklin

Published: 10 June 2013

Powerspeed has slowed down their sales to non-retail customers because of slow payments and the company now eyes further retail expansion, MD Hilton Macklin told the AGM this morning.

"The primary focus is to extend our retail base. We have had an issue since December where turnover had slowed down specifically to non-retail customers. We were finding a growing number of customers unable to service their accounts hence we've slowed down our sales to those customers, "he said.

"We don't believe we have a massive debtor's problem at all but it does mean that our throughput and income from those customers has declined."

"There was a normal decline in December but normally that picks up late January through February. It hasn't picked up and we find that there is massive shortage of funds in the market for people to buy."

He said that will have a negative impact on figures for the half year to March, "it is obviously difficult to quantify at this stage but we are not as bullish today as were in January this year," said Macklin.

They continue to pursue branch improvement and extension.

Macklin noted that plans are well advanced now to get the Victoria Falls branch opened and they have also secured other premises in Harare where they will be relocating some branches to the CBD.

"The efforts to pursue the retail income are ongoing but will take some time to actually bear fruit," added Macklin.

Commenting on competition from other businesses in the same sector, Macklin said; "There are other competitors in that market, but we believe that we have some strengths against them… we are happy that we are growing our retail base."

The meeting approved directors' and audit fees of $28 750 and $71 023 respectively while Grant Thornton Camelsa were reappointed as external auditors of the company.

- zfn

Tags: Powerspeed,