Date: June 11, 2019
Stationery and Office Supplies Limited (SOS) held its Annual General Meeting today which commenced with opening remarks made by the Chairman & Managing Director, Mr. David McDaniel. Mr. McDaniel outlined that SOS in 2018 achieved another year of growth as a result of an acquisitive approach and a robust sales strategy. He further noted that, “during the 2018 financial year, we acquired the SEEK brand of notebooks and launched into manufacturing, while at the same time simultaneously surpassing $1 billion in annual sales for the first time in the company’s history. Added to our list of firsts was the achievement of a new record of the highest ever sales in a single month, $102 million in March 2018.”
Furthermore, the purchase of SEEK and the opportunity to enter into the manufacturing division was an area of strategic growth for the Company. Notably, during the year the Company began manufacturing other paper products such as perforated ruled pads, flip chart pads and stenographer books.
For the financial year under review, Mr. McDaniel highlighted that, “total revenues increased to $1.06 billion or 17% higher when compared to 2017 with the majority of the rise in sales attributable to new and the expansion of existing business while net profit for the period totaled $91.67 million an increase of 10% relative to the $82.97 million reported in 2017. We expected a larger increase in profit, however the absorption of SEEK and the build out of a new factory space to house approximately 20 new staff, resulted in a marginally higher costs.”
In addition, the Company is the sole distributor in Jamaica for Fursys Systems Office Furniture (one of its leading lines of systems (modular) office furniture), Boss Chairs, Smart Office Furniture, Hi-Top Case Goods, Torch Furniture, Image Furniture, Sentry Safes, Gardex Fire Resistant Cabinets and Safes and is the only authorized service agent for Fellows Shredders. In May 2018, the Company acquired the manufacturing assets of Book Empire Limited, in a deal worth $80 million. Torch, Image and the Fursys line saw an increase of 15%, 25% and 30%, respectively for the 2018 financial year.
During the first quarter of 2019, SOS delivered the first export order to the islands for the year, a 20’ container of chairs with another export project looking to be delivered by the end of the 2nd quarter of 2019. Also, the Company supplied and installed over 700 seats to the BPO sector. Moreover, the Company has also supplied and installed systems furniture overseas to many multinational organisations in territories such as: The Turks and Caicos Islands, Haiti, Anguilla, Saint Kitts, Barbados, Saint Vincent, Guyana and Miami, and sees the potential to expand its foot-print within the Caribbean region as the Company continues its expansion drive.
Mr. McDaniel concluded by stating that, “with the expansion of the product line, we expect continued growth of the business line and a very positive outlook for SEEK going into 2019.”
Outlook:
- In discussion with two US based furniture manufacturers who would like to be represented by SOS in Jamaica
- Commence and complete the additional warehouse space, which will provide another 10,000 square feet of storage capacity
- Realize atleast six containers of exported products including both SEEK products and Torch and Image line furniture
- Sign up the first set of distributors outside the island
- Supply a project in the islands
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