Date: August 22, 2018
FosRich Company Limited’s (FOSRICH) Chairman, Marion Foster, hosted the Company’s first Annual General Meeting (AGM) today. The Chairman of the Board started the proceedings by welcoming shareholders and the introduction of the Board.
Mr. Cecil Foster, Managing Director, elaborated on the five revenue streams that contributes positively to the viability and profitability of the company. The following business segment contributions were noted:
- Electrical, 60% of total revenues
- Energy, 26% of total revenues
- Lighting World, 7% of total revenues
- Hardware, 5% of total revenues
- Industrial, 2% of total revenues
Mr. Foster mentioned that the company has developed a financing programme referred to as the ‘Retrofit Project Financing’ with an attractive interest rate of 12.5% per annum, in which the company aids business customers if they are unable to cover the cost of supplies from their cash flows.
The Managing Director also highlighted the financial performance of the company for the year ended December 31, 2017. “2017 was another milestone year as our revenues climbed to over $1 billion for the second consecutive year. We had a gross margin of 45% which rose from 41% in 2016. The repricing of selected inventory items contributed to this growth,” as reported by Mr. Foster.
Further insight was provided by the Company’s Chief Financial Officer (CFO), Peter Knibb, as to the reason behind the movement in specific line items. The CFO noted, “There was an increase in Administrative expenses which was driven by increases in rent associated with the new lease for the adjacent Molynes Road facility of $16.2 million. Staff costs, warranty expenses, motor vehicle fuel, marketing and distribution expenses and increases in electricity costs all contributed to administrative expenses.”
Mr. Knibb also stated that, “Inventories are being monitored closely by the company with respect to managing inventory balances and supply-chain, ensuring that balances being carried are optimized, relative to the pace of sales, avoiding both overstocking and stock-outs.”
Notably, FosRich is partnering with the Jamaica Public Service (JPS) and Philips Lighting on a Smart LED Street Lighting Replacement Project. This project is the first phase of several technologies that will be deployed in New Kingston, one of the first smart cities in the Caribbean. The initiative is one of Jamaica’s largest energy efficiency projects and is being rolled out in phases from 2017 through to 2020.
Lastly, the Chairman of the Board concluded by sharing that, “The company’s five-year strategic plan continues to guide our operations towards achieving our goals. Prime targets include increasing revenues, increasing our presence in the industrial segment of the market and transforming Jamaica to a more efficient LED environment.”
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