Originally written and published by Joshua Allsopp at opi.net
SOS Looks to Expand Warehouse
Jamaica-based Stationery and Office Supplies (SOS) is looking to increase its warehouse space in Kingston.
The announcement follows the successful and over-subscribed IPO back in July when SOS floated 50 million of its total shares to the general public and raised J$96 million (US$0.76 million). Proceeds were used to extend its inventory, which has expanded by 12% in the quarter to J$144.3 million, and around 25% since listing.
The company plans to use an adjoining property to grow its warehousing facilities in the city by 57%.
Meanwhile, SOS has reported a sharp and consistent rise in trading throughout the year. In the past nine months, sales are up 27% year on year to J$665 million, with pre-tax profit up 46% to J$69.2 million, allowing it to maintain a gross profit margin of 47% across all three quarters.
For the three months ended 30 September, sales were up 37% to J$233 million, while pre-tax profit was up 81% to J$18 million. The group attributed this to increased customer activity in the region, particularly with the expansion of new business process outsourcing firms.
The group’s outlook for the coming fourth quarter remained optimistic as favourable sales trends were expected to continue.