Expenses have been contained during the period
There was a marginal increase in profits at air conditioning company CAC 2000 Limited for the third quarter ended July.
Profit for the quarter under review was up around $630,000 to $7.87 million compared to the $7.24 million posted for the same period in 2020. This was due mainly to the $4-million fall in expenses, which declined from $295.49 million posted in July 2020 to $291.91 million posted for July 2021.
At the same time, revenues went down from $928.23 million in July 2020 to $820.19 million for the quarter in review, representing a whopping $108 million decline. Gross profit inched up to $320.6 million in July 2021 coming from $318.94 million for the same period last year.
Commenting on the fall in expenses, Chief Executive Officer Gia Abraham says the overall expenses continue their downward trend over the previous year, highlighting that the expectation is that this trend will continue as the company streamline its processes and procedures. This streamlining comes amid the implementation of the company’s Enterprise Resource Planning (ERP) System, which was done on April 1, 2021.
New ERP system up and running
Abraham advises that, “the system has now cut over in most areas of the business as of June 1, 2021. This change addresses our strategic priority of improving our overall operational effectiveness through improved reporting, analytics and overall cost containment. As with all conversions there were hiccups but the company is already seeing the benefits of converting to an ERP system“.
Trade receivables decreased by 3.21 per cent over the same period last year, and while there are challenges to collect due to lockdowns and increase in working from home, we are thrilled to see a downward trend in this area versus last year.”
Abraham advised shareholders that, “as a company we continue to expand our product and service offering to address health and wellbeing aimed at improving the Internal Air Quality (IAQ) of our customers, the most recent to be launched since our last report are our ‘DEHUMIDIFIERS’ which is a product aimed at reducing mold, mildew, and dry rot”.
Joint venture company, EnRvate Ltd. operational
The CEO reports that CAC 2000 Limited joint venture with Tropical Battery to form a new company, EnRvate Ltd, which is now operational thanking Executive Chairman Steven Marston and the team for the successful formation and launch of the new company. Abraham states that CAC 2000 Limited is looking forward to further expansion into energy related projects, products, and services.
On another matter, Abraham advises that CAC 2000 Foundation will be launching the next tranche of its Service Technician Training Programme on November 1, 2021, after working closely with Local Partner Development to secure funding through FHI 360 (formerly Family Health International. Unfortunately the most recent lockdowns has resulted in the start date being changed from October 1, 2021 to November 1, 2021.
The Foundation partnership with YFDN (Youth for Development Network) which offered summer apprenticeship to underserved communities, unattached and at-risk youth, was a huge success and we expect this partnership to continue
Regarding the impact of COVID-19 on the business, the CAC 2000 Limited boss explained that, “COVID continues to demand that we stay agile and can pivot on a dime. Our team continues to do just that and while it can be daunting COVID offers us many opportunities to be the best version of ourselves”.