The half-year report to March for Powerspeed Electrical is full of contradictions. It says trading conditions continued to worsen. Demand for all products remained soft. Volumes traded were no greater than previously achieved. Yet turnover increased by 247 percent from $1.3 billion to $4.5 billion.
The company had total turnover of $3.2 billion for the year ending September. It also made a net profit of $814.8 million, up from $109.3 million during the first half of last year and $269.3 million for the full year last year.
The company says the increase in turnover was largely due to the declining value of the Zimbabwe dollar. Despite its hefty profit, 202 percent above that for the full year to September, the company says real incomes are declining for all members of staff, and so are their living conditions.
It says this has a negative impact on morale and productivity and has increased the probability of conflict at the workplace. “There are still more honest employees who are being driven into criminal schemes by their desperate circumstances,” it says.
The company says because of uncertainties affecting both the company and suppliers, everyone is in “survival mode” with most decisions being taken on a short-term basis rather than long term.