Lumber Depot adds stacks of profit
Published:Sunday | July 18, 2021 | 1:16 AM
Lumber Depot Limited grew its profit more than sixfold to $145 million as it supported increased construction activity, which went straight to its cash coffers.
The company, which has operated a hardware store in Papine in St Andrew for over two decades, did an “excellent job” of capitalising on the commercial opportunities arising from the ongoing development of Jamaica’s construction sector, said Chairman Jeffrey Hall. For the year ended April 2021, Lumber Depot grew revenues by 14.7 per cent to $1.43 billion and generated operating cash of $186 million, tripling the $57 million outurn in the prior year.
The company’s capital base also spiked, nearly doubling – from $192 million to $323 million.
“Lumber Depot is clearly generating returns from the growth in Jamaica’s construction sector and to some extent from its improved tax status, arising from its listing on the junior market of the JSE,” Hall said.
The company expects the construction and home-improvement sector to continue growing over the medium term.
Lumber Depot was spun off from soapmaker Blue Power Group and listed on the junior market of the Jamaica Stock Exchange towards the end of 2019. Under the transaction, Lumber Depot Limited acquired the assets and liabilities of the Lumber Depot Division from Blue Power Group Limited in August 2019 and listed four months later.