Jamaica Observer / Air conditioning and engineering company CAC 2000 Limited doubled net profit for its second quarter ended April 30 despite significant increase in expenses related to its recent preference share offer. The company, which raised $200 million in its preference share offer in March, posted profit of $55.8 million for the three months up to April, doubling the $27.3 million it made a year earlier. For the six months to April 30, CAC2000 made profit of $53.7 million, 3.9 per cent above the $51.6 million reported last year.
The increase in profit enabled the company to recover from $2.2-million loss posted by the company in quarter one. Revenue climbed from $265 million to $383 million quarter over quarter.
“As projected, we were able to recover from the shortfall and this momentum will continue as our sales funnel and won jobs portfolio continue to grow,” Chairman and CEO Steven Marston told shareholders in a statement adjoining the company’s financials.
Nonetheless, CAC 2000 Limited burnt $100.5 million in general administration expenses primarily related to salaries, travel-related expenses, and professional fees inclusive of costs related to the preference share issue.
The company has since appointed Gia Abrahams as chief operating officer and made operational its customer resource management system to better manage sales.
“We have been selected by Carrier as a beta tester for the air conditioning system remote- monitoring system — these will ship shortly,” Marston continued.
CAC are long-time partners of Carrier, LG Mitsubishi Electric and Fujitsu air conditioning manufacturers. The company offers some of the largest and most technologically advanced range of air-conditioning systems in Jamaica, with best value guarantee, backed by factory warranties.
In addition to being selected as beta tester by Carrier, CAC should see increased revenue earnings from its partnership with a financing company which will collect a monthly fee from clients for rental of air conditioning systems installed by CAC 2000 Limited.
On completion of each project, the third-party financing company would pay CAC the full amount for the job. The agreement is said to be the first of this type of rental done for commercial air conditioning systems in Jamaica.
CAC closed the quarter with cash and cash equivalents of $261 million, more than doubling the $110 million the company posted at the end of April last year.