No objection to permit from TAJ, Jamaica Customs and Finance Ministry
Jamaican publicly listed lighting and energy company, FosRich is close to getting its Special Economic Zone permit, which will enable the entity to benefit from long-term tax concessions.
This is further good news ahead of its planned capital raise later this year in the form of a rights issue and or additional public offer of shares. There was also good news this week when FosRich released its March 2022 quarterly financials, showing net profits jumping to J$158.9 million, up from the J$38.4 million posted in March 2021.
FosRich is confident of getting its Special Economic Zone permit, having now met all the pre-conditions in its application for its new subsidiary, Blue Emerald Limited, to be registered under The Special Economic Zone Authority. This is being done to take advantage of the significant long-term tax concessions that are available under the relatively new Special Economic Zone regime.
The company is reporting that its application received no objection from Tax Administration Jamaica (TAJ) and the Jamaica Customs Agency.
Finance Minister gives his blessing
Additionally, consultations were carried out with Finance Minister Dr Nigel Clarke, who has offered no objection to the establishment of the free zone by FosRich through its new subsidiary. The application is now with the Ministry of Industry, Investment and Commerce for consideration by the portfolio minister.
It is anticipated that this process will be completed within 30 days and then gazetted.
FosRich has indicated that activities being undertaken at its new facility in Hayes, Clarendon will be done through Blue Emerald, acting exclusively for FosRich under a contract manufacturing arrangement.
According to FosRich, “we are cognizant that despite the challenges ahead within this operating space, that we have the right talents and leadership to deliver on our plans for the ensuing period. We will continue to execute on our plans to ensure that we remain competitive and deliver value solutions to our customers”.
The management has advised shareholders and stakeholders of its desire to continue to expand the business and bring greater value to its various stakeholders while enlisting their support.
Posts health income for Q1
FosRich generated income for the March first quarter of J$900.3 million compared to J$549.3 million for the prior reporting period. Gross profit for the year-to-date amounted to J$371.3 million compared to J$191.7 million for 2021.
FosRich reports that “these increases were attributed primarily to increased sales in eight of our 11 Product Groups as follows: Control Devices, Industrial, LED, Lighting World, PVC, Solar, Wires and Wiring Devices”.
Administration expenses is rising considerably with the year-to-date amount totaling J$195.2 million, reflecting an increase of $58.5 million on the prior reporting period figure of J$136.7 million.
The changes were driven primarily by increased staff related costs for salary adjustments, increased sales commission, due to improved sales performance and improvements in staff benefits.