CBR
search
Retail

Lumber Depot Limited in Papine, St Andrew, Jamaica. (File photo)

Jamaica’s Lumber Depot increase profit by 79%

Lumber Depot Limited in Papine, St Andrew, Jamaica. (File photo)

Lumber Depot Limited has increased revenues by eight per cent for the six‐month period ending on October 31, 2020, relative to the comparable period in 2019.

The company’s profits also increased 79 per cent to JM$66.04 million.

According to Chairman Jeffrey Hall, Lumber Depot has continued to trade positively despite the challenges generally associated with the COVID-19 pandemic.

Chairman of Lumber Depot Jeffrey Hall (File photo)

Almost one year since listing

The Lumber Depot, which has been in operation for over 20 years, is a full‐service hardware, located in Papine, St Andrew in Jamaica, that serves the needs of large and small‐scale building contractors, as well as homeowners, undertaking construction projects, renovations and repairs.

It began operating as a stand-alone entity last year when Blue Power GroupLimited, effective August 1, 2019, disposed of the assets and liabilities of Lumber Depot, which it held as a subsidiary.

Lumber Depot then listed its shares on the Junior Market of the Jamaica Stock Exchange (JSE) on December 16, 2019.

Lumber Depot’s initial public offering one-pager (Photo: Mayberry Investments Limited)

Improved revenues driving profitability

Hall noted that the hardware has benefited from improved revenues as well as the improved tax status of the business arising from listing on the Junior Market of the JSE.

“During the period under review, a major area of focus for us was to maintain consistent inventory levels in all of the key hardware supplies
— including lumber, steel and cement products — regardless of the factors affecting production and transportation of these items,” Hall also shared.

A Lumber Depot employee uses a forklift to onload cement to a tractor. (File photo)

Due to the company’s success in this area, the chairman stated, Lumber Depot has improved its standing with key customers.

“With our decision to raise equity capital through the JSE, we also benefit from a strong balance sheet that allows us to secure the commercial opportunities that are now available to us and to maintain resilient levels of inventory.”

As a result of the listing, shareholders equity for Lumber Depot Limited has increased 34 per cent year‐to‐date and now stands at JM$258.28 million.