CAC 2000 Limited's profitability inches up due to Q3 fall in expensesWednesday, October 13, 2021
BY DURRANT PATE
AIR conditioning company, CAC 2000 Limited has seen a slight improvement in its profitability for the third quarter ended July, as a result of a marginal decline in expenses.
Profit for the quarter under review was up $630,000 to $7.87 million compared to the $7.24 million posted for the same period in 2020. This was due mainly to the $4-million fall in expenses to $291.91 million posted for July 2021.
At the same time revenues suffered from a $108-million fallout to $820.19 million for the quarter under review.
The principal activities of the company are the provision of energy and indoor environmental quality (IEQ) solutions, especially around thermal comfort (which encompasses HVAC installation, maintenance and repair).
Chief Executive Officer Gia Abraham reports that, “Overall expenses continue their downward trend over the previous year and we expect this trend to continue as we streamline our processes and procedures following the implementation of the enterprise resource planning (ERP) system. Trade receivables decreased by 3.21% over the same period last year and, while there are challenges to collect due to lockdowns and increase in working from home, we are thrilled to see a downward trend in this area versus last year.”
Abraham gave an update of the ERP system, which was implemented on April 1, 2021 as a soft launch. The system has now cut over in most areas of the business as of June 1, 2021. “This change addresses our strategic priority of improving our overall operational effectiveness through improved reporting, analytics and overall cost containment,” the CEO explained.
Abraham conceded that, as with all conversions, there were hiccups but the company, which is 52% owned by Caribbean Air Conditioning Company Limited — a company incorporated and domiciled in St Lucia — and local investors on the Jamaica Stock Exchange, is already seeing the benefits of converting to an ERP system.
As for indoor environmental quality, Abraham advised shareholders that, “As a company we continue to expand our product and service offering to address health and well-being aimed at improving the internal air quality (IAQ) of our customers. The most recent to be launched since our last report are our 'dehumidifiers', which is a product aimed at reducing mould, mildew, and dry rot.”
On the matter of strategic partnerships, the CEO thanked Executive Chairman Steven Marston and the team for the successful formation and launch of the company's joint venture with Tropical Battery to create a new company, ENRVATE Ltd. CAC 2000 Limited is looking forward to further expansion into energy-related projects, products and services.
The CAC 2000 Foundation will be launching the next stage of its Service Technician Training Programme on November 1, 2021, after working closely with Local Partner Development to secure funding through FHI 360 (formerly Family Health International). Unfortunately, the most recent lockdowns have resulted in the start date being changed from October 1, 2021 to November 1, 2021.
The foundation's partnership with Youth for Development Network (YFDN), which offered summer apprenticeships to underserved communities, unattached and at-risk youth, was a huge success and it is expect that this partnership will continue.