Blue Power Limited, via a notice on the Jamaica Stock Exchange (JSE) indicated that Noel Dawes has resigned as Managing Director, effective February 29, 2020.
Blue Power has appointed Lisa Kong-Lee as General Manager, effective March 1, 2020. Dawes will continue as a non-executive director.
The changes come as the manufacturing company seeks ways to refresh sales after a World Trade Organization (WTO) ruling cramped Caricom exports.
Additionally, company manager Veronica Lowe has retired as effective February 29, 2020.
Blue Power made a loss from operations of $20.7 million while an overall loss of $7.3 million was reported for the third quarter ending January 31, 2020.
In late 2019 Jamaica Customs said that the company’s soaps do not qualify for preferential treatment under new WTO rules.
Export sales declined during the quarter from $27.6 million to $22.4 million.
The ruling by Jamaica Customs is that the previous tariff classification for raw materials is not acceptable.
For the third quarter, there was also a one-off cost of $27 million incurred in making paying off non-supervisory staff of the Lumber Depot division.
For the third quarter, revenue was $111 million compared to $110 million in the previous year.
Blue Power Group’s revenue is now derived from manufacturing, rental of property and provision of management services to Lumber Depot Limited.
Company directors said the company is exploring all avenues for restoring exports to CARICOM which constitute about 20 per cent of sales.
Blue Power spun off its lumber division last year with a transfer of assets and liabilities to a new company – Lumber Depot Limited on August 1, 2019.
The new entity was listed on the Junior market of the Jamaica Stock Exchange on December 13, 2019.
Results for the nine months from continuing operations show a profit of $50.1 million before tax and $44.3 million after tax.
Higher administrative expenses resulted in the third quarter loss.