Durrant Pate/Contributor

CAC 2000 Limited is in dire need of capital, as the air conditioning and energy company is going through a lean spell, posting net losses of J$80.92 million for the first quarter ended January 31, 2025.

This is a further decline of 38% from the loss of $58.61 million post in the prior year. Chief Executive Officer, Gia Abraham, is admitting, “Q1 was a challenging quarter, and I want to give you a clear picture of it. Revenue came in at J$81.5 million; well below where we want to be and significantly down on the prior year. The shortfall is not a demand issue.”

Abraham acknowledged that working capital is the main let-down for the company, which currently has over J$1.4 billion in open projects and contracts but this lack of working capital is constraining its ability to mobilise and execute on that pipeline. 

“That remains the central challenge we are working to resolve. The loss of J$80.9 million reflects a cost base — overhead and finance costs — that does not move in lockstep with revenue,” Abraham advises shareholders in her quarterly report. 

Positive developments happening

Continuing, she promises, “as working capital improves and we can execute, the revenue recovery should follow, and the loss position with it,” citing certain meaningful on the operational side of the business. Gross margin improved to 30.4% from 26.1%, as the company held pricing discipline even with lower volumes. 

More importantly, receivables have improved substantially. This was executed through a focused collections effort, as management brought trade receivables down by over J$285 million year-on-year, representing  a 41% reduction. That work generated J$118.6 million in cash inflows during the quarter alone, which is why CAC 2000’s cash position of J$50.3 million is essentially unchanged from a year ago despite the operating loss. 

Near term priorities

Payables have also been managed down by over J$127 million year-on-year. Abraham reports that the balance sheet is moving in the right direction, and that momentum is expected to continue. As for the path forward, the management’s near-term focus is on two things, which are refinancing existing debt obligations and unlocking the project working capital that will allow the company to convert its pipeline into revenue. 

For the CEO, “these are not abstract goals — we are actively in discussions and making progress on both fronts. Once working capital is restored, the revenue recovery is a matter of execution. The projects are contracted. The team is in place. We know what we need to do.”

She remains confident in the direction we are heading and committed to keeping shareholders informed as the management move through what is expected to be a defining period for the business.