Shareholders equity up 34%
Despite the challenges in business operations caused by COVID-19, Lumber Depot is reporting a marked improvement in profits, as revenue was up marginally for the six-month period May-October 2020. Revenues for the period increased by eight per cent relative to the comparable period in 2019.
At the same time, profits increased by 79 per cent to $66.04 million. Company Chairman Jeffrey Hall reported that the business benefited from improved revenues as well as the improved tax status of the business arising from its listing on the Junior Market of the Jamaica Stock Exchange (JSE) last year. As a consequence of the strong performance, shareholders equity in Lumber Depot Limited has increased by 34 per cent year‐to‐date and now stands at $258.28 million.
In his report to shareholders, Hall stated that, “Lumber Depot recognises that the COVID-19 pandemic presents challenges for the Jamaican economy. Our strategy is to consistently offer competitive prices on our products and to maintain our service standards while prioritising the safety of our customers and staff.”
MAJOR FOCUS FOR THE COMPANY
During the period under review, a major area of focus for the company was to maintain consistent inventory levels in all of the key hardware supplies including lumber, steel and cement products regardless of the factors affecting production and transportation of these items.
According to Hall, “We have been generally successful with this and in turn this has improved our standing with key customers. With our decision to raise equity capital through the JSE, we also benefit from a strong balance sheet that allows us to secure the commercial opportunities that are now available to us and to maintain resilient levels of inventory.”
He thanked the board, management and staff for their effective work in successfully managing through a challenging business environment to deliver strong results for shareholders.
Lumber Depot operates a full service hardware store in Papine, St. Andrew that serves the needs of large and small‐ scale building contractors, as well as homeowners doing construction projects, renovations and repairs. The Lumber Depot business has been in operation for over 20 years and during this time has established a market leading position in the communities we directly serve and a strong reputation for excellent service and good value across the wider corporate area.