Sta­tionery com­pany ex­pe­ri­ences March magic:

Jamaica Gleaner - - FINANCIAL GLEANER - busi­ness@ glean­

STA­TIONERY & Of­fice Sup­plies Lim­ited, SOS, a fur­ni­ture and equip­ment provider for of­fices, sur­passed the $100-mil­lion mark in monthly sales for the first time in a half-cen­tury of op­er­a­tions.

The com­pany earns the bulk of its sales revenue from small and medium-size busi­nesses, but in­di­cated that a pub­lic-sec­tor con­tract drove its March sales.

“Dur­ing the first quar­ter 2018, SOS has con­tin­ued to grow, once again set­ting an all-time high in sales for any sin­gle month in March at $102 mil­lion, as well as the high­est recorded sales for any quar­ter ever posted in the 50year his­tory of the com­pany at $279 mil­lion,” said Chair­man David McDaniel and Chief Ad­min­is­tra­tive Of­fi­cer Mar­jorie McDaniel in a state­ment pref­ac­ing the earn­ings re­port.

SOS quan­ti­fied the govern­ment con­tract at $22 mil­lion, which it recorded on its books in March.

The com­pany posted a profit of $44.5 mil­lion for the three months end­ing March, up 47 per cent year-on-year. That equated to $0.17 per share for the quar­ter com­pared with $0.10 per share a year ear­lier.

Dur­ing the quar­ter to­tal, as­sets grew to $676.1 mil­lion, up from $498 mil­lion, or 36 per cent, higher year-on-year. The rise was due to the pur­chase of new prop­erty, a 60 per cent in­crease in in­ven­tory, a 68 per cent rise in bank and cash equiv­a­lents, and a 19 per cent rise in re­ceiv­ables.

In April, SOS an­nounced that it ac­quired the man­u­fac­tur­ing as­sets of Book Em­pire Lim­ited, which makes note­books, choir books and writ­ing pads, in a deal worth $80 mil­lion.

With the ac­qui­si­tion, SOS en­tered into light man­u­fac­tur­ing in the first week of May. Pre­vi­ously, SOS would out­source the mak­ing of its pads and paper sta­tionery, but now, pro­duc­tion of such items will move in-house at the com­pany’s Beech­wood Av­enue com­plex. The sup­ply of of­fice fur­ni­ture, which are also as­sem­bled at Beech­wood, re­mains the com­pany’s core ac­tiv­ity.

Chair­man and Manag­ing Di­rec­tor of Sta­tionery & Sup­plies Lim­ited, David McDaniel.

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