Date: August 13, 2019
FosRich Company Limited’s (FOSRICH) Chairman, Mr. Marion Foster, hosted the Company’s second Annual General Meeting (AGM) today. The Chairman of the Board started the proceedings by welcoming shareholders followed by an introduction of the Board.
Mr. Cecil Foster, Managing Director, stated “ for the past three years the company has seen revenues of over $1 billion.” He further 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, 27% of total revenues
- Lighting World, 7% of total revenues
- Hardware, 2% of total revenues
- Industrial, 4% of total revenues
Mr. Foster mentioned that the company has continued to partner with JPS Co in the Smart LED Street Lighting Replacement Project which has contributed to a safer environment as well as the saving of energy.
The Managing Director also highlighted the company’s business channels as a means to grow the customer base. These avenues that contributed to sales include:
- Products and services are made available through their four retail outlets
- Internet platform
- Direct marketing through cold calls. This has contributed to 39% of the Company’s revenue.
- Kingston main store which contributed to 36% of the Company’s revenue
- Mandeville (11% of the total revenue)
In addition, Mr. Foster stated that, “we contracted a local company on the Stock Exchange to formulate a plan to digitize inventory to access our products even on the mobile.” He further stated that, “this is slated to be at least 60% complete by the end of 2019.”
Further insight was provided by the Company’s Chief Financial Officer (CFO), Peter Knibb on 2018’s financial highlights. The CFO noted, “There was a 24% increase in revenue year over year from $1.05 billion in 2018 to $1.29 billion in 2019. Consequently, gross profit increased to $534 million compared to $473 million the prior year. Moreover, Profit after tax grew 64% from $55 million in 2018 to $90 million in 2019.
Mr. Knibb also highlighted the Company’s year to date financials, for the six months ended June 30, 2019, turnover grew 26% year on year, to close the period at $746.43 million compared to the $592.29 million for the same period last year. Consequently, Net Profit being total comprehensive income for the period amounted to $61.67 million (2018: $60.65 million). Mr. Knibb concluded by saying, “with a year to date net profit of $60 million, then we should be on track to beat the $90 million booked for the financial year 2019.”
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