POWERSPEED Electrical Limited profit for the full year to September declined weighed down by rising operating costs, the company has reported.
The company’s profit declined to $465 902 from $535 000 last year same period as the company transformed its business into a hardware retailer.
“The 12 months to 30 September 2013 were extremely difficult as business confidence, investment and economic activity became increasingly depressed,” the group said in a statement accompanying the financials.
“The expansion and improvement of the branch network countrywide has increased expenses, resulting in a marginal decrease in profit from operations to $1,16 million from $1,39 million.”
Operating expenses for the group went up to $7,9 million from $7,3 million same period last year.
Revenue for the group went down marginally to $28,6 million from $29,2 million while gross profit was up 6% to $8,7 million due to an increase in retail business.
This comes on the back of increasing competition from cheaper imports flooding the market following the introduction of multiple currencies in 2009.
“An extremely tight debtors’ policy may have negatively impacted on turnover. However, the policy helped improve cashflows and has allowed for greater investment in stocks, while reducing the cost of finance from $676 000 to $555 000,” the company said.
Basic earnings per share for the group fell to 0,12 cents during the twelve months period from 0,14 cents.