ELECTRICAL and lighting company FosRich Limited is moving aggressively to implement a five-point turnaround strategy aimed at restoring profitability and strengthening cash flow as it positions the business for sustainable growth after reporting a wider net loss in the first quarter of this year.

For the three months ended March 31, 2026, the company reported a net loss of $178.8 million, compared with a loss of $68.6 million in the corresponding period last year. Revenue also declined sharply to $415.2 million from $852.9 million a year earlier, following weaknesses in the solar segment coupled with cash flow constraints that limited inventory purchases.

Managing Director Cecil Foster, in an interview with the Jamaica Observer this week, said the company is making steady progress on the initiatives outlined in its first-quarter report to shareholders and expects to complete the most critical elements of the plan by end of July.

At the centre of the recovery strategy is a sale-and-leaseback transaction involving company-owned real estate assets. While declining to identify the properties involved, Foster said proceeds from the transaction will be used to eliminate debt and provide additional working capital. “We have assets and want to turn them into cash and pay down all our debt,” he said. “By the end of next month, we should be free of all debt and have surplus cash to run the business,” he noted.

The company disclosed in its latest report that it is working with financial partners to execute the transaction, with funds earmarked for liquidating existing loans and financing inventory purchases.

Another major component of the plan is the development of FosRich’s highly anticipated superstore. Although the facility is not expected to officially open until later this year, Foster said several tenants have already committed to leasing space within the complex. The superstore is expected to serve as a multi-purpose commercial hub, generating rental income while increasing customer traffic and supporting the company’s retail operations.

In addition to those measures the company is also tightening inventory management, as it heightens focus on high-performing products that can generate faster turnover.

“We want to make sure that we’re only buying the right things that will fly off the shelves,” Foster said.

Administrative costs also fall under review as management seeks after greater efficiencies across the organisation.

“Every company has to always look at administration because there’s always fat you can cut,” Foster said. “We’re looking at everything in the business to ensure costs remain under control.”

Areas being targeted for savings include energy consumption, supplier arrangements, transportation costs and workforce optimisation.

The fifth pillar of the strategy focuses on vertical integration through expanded partnerships with property developers to increase the use of FosRich products in residential and commercial projects across the island. Under this initiative, the company aims to position itself as a preferred supplier for large-scale developments, providing electrical products, lighting systems, solar equipment and related infrastructure.

“There are a lot of developments taking place across the country and so we’re partnering with developers to supply almost everything to those projects. We have already started and have so far received strong commitments,” Foster said.

Expressing confidence in the turnaround plan, he said implementation is already well advanced in a number of key areas.

“We do not take lightly what we have put on paper, and we are working on all that we have shared with the public. We are very optimistic and we’re almost there with the bigger part of the plan,” Foster said.

Although sales in the company’s fast-growing solar division declined sharply during the quarter, Foster said improved market conditions and more favourable credit terms from overseas suppliers are beginning to ease previous challenges.

“Things are changing now. We didn’t have the cash flow to ensure goods arrived on time, but that situation is now improving,” he noted.

Despite the first-quarter setback, the managing director said he remains confident about the company’s growth prospects, citing strong demand across its core markets and the expected benefits of improved liquidity as critical drivers of the mission.

“Our major concern right now is to fix the cash situation and that’s what we’re doing,” Foster said.

“The market is even bigger than it was a year or two ago, so once we have the products here, we expect to get them into the hands of users,” he added.

With improved cash flow over the next six to eight weeks, Foster said the company should be able to increase inventory levels and better meet customer demand through its network of locations across the island.

While declining to predict when FosRich is expected to return to profitability, he said management’s immediate focus remains on executing the turnaround strategy and laying the foundation for sustained earnings growth.

“All of the plans that we are working on are to take us to a point where we are making surpluses over the next couple of quarters. We’re going to do our best and see what happens,” Foster said.

FOSTER… all of the plans that we are working on are to take us to a point where we are making surpluses over the next couple of quarters