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Investors responding positively to Paramount Trading Jamaica Limited’s turnaround performance in its first quarter ended August.
PTL shares closed at $0.94 on the junior market of the Jamaica Stock Exchange on Wednesday, after tripping the circuit-breaker, which halted trading. The PTL stock traded in a range of 88 cents to $1.05, and closed up 17.5 per cent after the day’s trading.
Interest in the PTL shares since this month has pushed the stock higher, but it is still performing well below the one-year high of $1.40.
The chemical and construction materials distributor posted quarterly profit of just under $55 million, reversing a $38-million loss recorded in the similar period last year. Revenue climbed 14.4 per cent year-over-year to $445.2 million, driven by a 140 per cent surge in its construction segment, alongside modest growth in its technical grade and bleach divisions.
Operating profit before finance costs stood at $94.7 million, a sharp turnaround from an $18.2-million loss last year.
Capital rose to $1.12 billion, bolstered by the growth in retained earnings.
Paramount’s balance sheet also showed total assets of $1.73 billion, up from $1.68 billion in the prior year. Inventories rose to $884 million, reflecting increased demand and production capacity borne of the recent production deal hammered out with Manpower Maintenance Services.
During the August quarter, the company took the final disbursement of a $700-million bond, with Managing Director Hugh Graham noting that the $188-million proceeds mostly went into property acquisition.
“We’re focused on building a diversified revenue base and strengthening our linkages with the construction and manufacturing sectors,” Graham said. “This quarter’s results show that our strategy is working,” he added.
Paramount presently operates five facilities, located in Kingston at East Bell Road and Waltham Park Road. Logistical, security and operational challenges are a drain on the company’s finances and Graham has long indicated that he plans to consolidate the operation.
He declined to comment on the location, but indications are that Paramount Trading will be taking up space in a new industrial park in the Ferry/Caymanas area on the border of Kingston and St Catherine.
The Urban Development Corporation, the agency responsible for the development, said that the lots are being sold at US$1 million per acre, which translates to around $162 million.
However, Graham still declined to comment on the issue when prodded, saying a clearer picture will emerge by the end of the company’s current financial year, that is, by May 2026.
“All I will say is that we expect to be making a big announcement before the end of the financial year,” he said.
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