Date: September 11, 2019
Derrimon Trading Limited, continued on the path of diversification, debt restructuring and strengthening of revenue sources during the 2018 financial year. The Group reported revenues of $9.30 billion versus $6.72 billion in 2017. Chairman and Chief Executive Officer, Derrick Cotterell, indicated that, “this outcome was positively influenced by the growth in the distribution business with the merchandize portfolio and the addition of the SM Jaleel suite of products.” Furthermore, the Group closed the 2018 financial year with a profit of $277.21 million.
However, the Group was faced with obstacles by the Distribution Centre and Sampars Cash and Carry, due to the road construction activities. As a result of this turbulence, there were logistical challenges for inbound and outbound shipments and other movements as well as retail customers who frequently visited the location. Due to the negative impact faced, there were reduced retail traffic, increased trucking and staff costs, increased logistics costs and inconvenience and dust nuisance to persons working in the area. Notably, retail revenue reduced by 62% while trucking and delivery costs increased by 2%.
The Group’s tactical debt management strategies however continues to push Derrimon forward, thus resulting in the restructuring of short term loans to long-term amortized loans and the refinancing of preference shares. In addition, other strategic highlights were highlighted by Mr. Cotterell, such as:
- Acquisition of Woodcats International
- Partnership with SM Jaleel
- Reduction in finance costs
In addition, upcoming developments were stated, which includes:
- New Warehouse
- New IT Platform
For the year 2019 and beyond, the Group mentioned the following plans geared towards delivering growth in revenue and operating profit:
- Seek opportunities through acquisitions and joint ventures, thus providing long-term positive contributions within the retail space
- Deepen relationships with existing principles and suppliers
- Driving distribution synergies to improve efficiencies and improve engagement
- Attracting and investing in talented people through internship programme
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