Fri | Dec 1, 2023

JFP quadruples profit as revenue rises

Published:Wednesday | May 18, 2022 | 12:09 AM
CEO of JFP Limited, Metry Seaga.
CEO of JFP Limited, Metry Seaga.

JFP Limited, a commercial supplier of furniture and fixtures, is reporting a fourfold growth in profit and a near doubling of revenue in its first quarterly financial results since its listing in mid-March.

It’s given the company a boost in confidence, coming off the depressed business during the pandemic.

“With the company’s excellent performance in the first quarter and its confirmed jobs in hand, we expect to have our best year ever in our 37-year history, both in terms of sales and profits,” said CEO Metry Seaga.

JFP, formerly Jamaica Fibreglass Products Limited, reported a profit of $35 million on revenue of $110.3 million for the March quarter. That’s up from earnings of $8.7 million on revenue of $65 million in the comparative 2021 period.

The first-quarter profit equates to three cents per share, or nearly half that of the full-year earnings of five cents.

The market barely reacted to the results released prior to the opening of trading on Monday, inching up its value by seven cents to $1.70. On Tuesday, JFP fell 10 per cent, or 17 cents, to $1.53.

Still, the JFP shares are currently trading more than 50 per cent higher than the IPO price, and at twice the value placed on it by some brokers prior to the sale of the shares.

The company went ahead with its IPO, brokered by GK Investments, despite navigating COVID-19-related disruptions to its project timeline and, consequently, its earnings. The stock was offered at $1 per share, but brokers Barita Investments and JN Fund Managers thought it was only worth about $0.88 and $0.68, respectively. Barita’s estimate was based on JFP’s future cash flows, while JN focused on its historic profit and loss.

The market reacted positively to the IPO at the price of $1.

“We endeavour to ensure that your confidence is rewarded by maximising your investment, both by regular dividend payments and an overall increase in value as we continue to improve operations,” JFP said in its financial report.

The company, which netted $215 million from the IPO, plans to invest in the manufacture of furniture and fittings for supply to hotels and one-off projects.