Business
JM | Dec 10, 2020

Marked improvement in profits for Lumber Depot as revenues move up marginally

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Shareholders equity up 34%

Lumber Depot. (Photo: bluepowerja.com)

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.”  

Jeffrey Hall, chairman of Lumber Depot Ltd.

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.”

Lumber Depot. (Photo: bluepowerja.com)

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.

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