FosRich to produce transformers in Jamaica
AFTER nearly three years from the announced partnership with JPS, FosRisch said it is now at the stage to produce transformers in Jamaica.
Cecil Foster, managing director of FosRich, said production will begin within the next two to three weeks. This comes following training for the team and acquisition of the tools to execute the opportunity. FosRich is also set to enter its new 120,000-square-foot superstore location later this year at 76 Molynes Road.
“This is going to be a FosRich brand very soon. We have been working tirelessly to motor our way with our transformer repair business and the good news is, we have acquired the skills, the partnership, and we have also acquired the machine that is going to build the coils so that we can have a transformer made in Jamaica,” Foster joyously mentioned about the future ahead for this opportunity.
FosRich grew its consolidated revenue by 20 per cent to $1.08 billion in its first quarter (January to March) but saw contraction in its operating profit by 13 per cent to $138.98 million, due to higher financing costs and operational expenses. Its net profit also dipped 23 per cent to $121.72 million as it is currently paying 50 per cent on its normal tax rate compared to last year when it benefited from a 100 per cent tax remission. The tax remission is set to fully expire in December 2027.
FosRich’s total assets grew 10 per cent in Q1 to $5.60 billion, with its receivables up 74 per cent to $657 million as it recorded improved business activity. Its total liabilities increased 12 per cent to $3.70 billion, with the company now paying higher interest rates on its debt after rolling two bonds in February to new double-digit rates. Shareholders’ equity closed the period at $1.91 billion.
FosRich’s stock price is down 43 per cent year to date to $2.24, which leaves it with a market capitalisation of $11.25 billion. The company is expecting to execute its rights issue in the next month to bring in a net amount of $130.38 million in fresh capital for its opportunities ahead.
“We are going to be one of the companies that can be trustworthy, committed to quality, service and dedicated to the building of relationships. All of this must redound to one thing, shareholder value. We’re doing this to increase whatever investments we have for those who have invested in FosRich; we need you to make a return. So, that is the climb to the pinnacle and these are the stepping stones we’re going to be stepping [on] to get up to this pinnacle,” Foster closed.
