CBR
search
Finance

A CAC 2000 employees waits for patrons at his booth at the Montego Bay Expo on Friday, March 6, 2020. (Photo: Facebook @CAC LImited)

CAC 2000 on the road to recovery

A CAC 2000 employees waits for patrons at his booth at the Montego Bay Expo on Friday, March 6, 2020. (Photo: Facebook @CAC LImited)

A combination of improved revenues and lower expenses pulled CAC 2002 Limited out of the red as the company reported a return to profitability.

“The increased revenues and profits for the quarter demonstrate our recovery from the challenges arising from the road construction works in the prior year,” Chairman and CEO Steven Marston stated.

Steven Marston, chairman and CEO, CAC 2000 Limited (Photo: Jamaica Observer)

For the first quarter of financial year 2019/20, which ended on January 31, revenues at CAC 2000 reached JM$306.6 million. This represents an increase of 84 per cent over JM$166.4 million reported in the corresponding period a year prior.

The increased revenues and profits for the quarter demonstrate our recovery from the challenges arising from the road construction works in the prior year.”

— Steven Marston, chairman and CEO, CAC 2000 Limited

On the other hand, the air condition distributor reduced it expenditure by JM$6 million or 5.4 per cent. Marston, in fact, boasted that, at JM$113.5 million, expenses represented 37 per cent of revenue and other income — the latter from its Barbuda project.

In particular, general administrative expenses decreased by 8.0 per cent as a result of savings from salaries, information technology, depreciation, bad debt rcovery, among other costs. However, selling and distribution and finance costs increased when compared to the same period last year.

For the first quarter ended January 31, 2019, CAC 2000 recorded operating profit of JM$9 million, which contrasted with a loss totalling JM$30 million a year earlier. After adjusting for finance charges, profit before taxes stood at JM$1.3 million.

The company increased its cash holdings through loans while reducing its inventory since the last quarter. Additionally, it increased trade receivables as “invoicing activities increased in the final quarter”.