Stationery and Supplies Limited (SOS) achieved a significant milestone in 2022, as the company reported its highest-ever end-of-year net profit of $256 million, surpassing the previous record of $137 million set in 2019.
During the company’s annual general meeting on Wednesday, Allan McDaniel, the managing director of SOS, expressed his enthusiasm for the remarkable year they had experienced.
McDaniel highlighted that the 58-year-old company reached all-time highs in nearly every aspect of its business operations.
One of the notable decisions taken at the meeting was the unanimous approval of a 9:1 stock split, scheduled for implementation on August 2, 2023. This decision marks a significant milestone in SOS’s growth journey within the furniture and office supplies industry.
Allan McDaniel, SOS Managing Director.
At the virtual AGM, shareholders voted in favour of increasing the maximum number of authorized shares from 500,000,000 to 500,000,000,000.
Additionally, they agreed to subdivide the existing ordinary shares into nine ordinary shares, effectively increasing the total shares issued from 250,120,500 to 2,251,084,500. As a result, each shareholder will receive nine additional shares for each share they currently hold.
The value of these shares will fall within the range of J$2.50 – J$3.50 per share, which is significantly lower than the previous value of J$27.41 as of July 24, 2023, or the company’s record high of J$34.98 in June 2023.
“Over the years, we have worked tirelessly to push the boundaries of innovation and deliver exceptional value to our customers. Our efforts have not gone unnoticed, as evidenced by the rapid growth of our stock price,” McDaniel said.
He added: “With this stock split now approved, it will allow us to make our shares more accessible to a broader range of investors and strengthen our market presence.”
He emphasised the company’s tireless efforts in pushing the boundaries of innovation and delivering exceptional value to customers, which has been reflected in the rapid growth of their stock price.
Despite the challenges posed by the COVID-19 pandemic, SOS managed to achieve impressive growth of approximately 56 per cent, with revenues rising from $1.12 billion in 2021 to $1.75 billion in 2022. Pre-tax profit also saw a substantial increase of 169 per cent.
SOS Chairman Stephen Todd
The strategic decision to maintain high levels of inventory enabled SOS to cater to the needs of new customers and distributors promptly, contributing directly to the 56 per cent increase in sales, as stated by Chairman Stephen Todd at the AGM.
Key to the company’s success was the revival of the tourism industry, which led to a notable 70 per cent increase in revenue for SOS’s Montego Bay branch.
Todd also highlighted the promising start of 2023, with the company reporting its highest-ever first-quarter revenue and achieving record revenue of 207 million for March.
In another development, SOS secured a significant opportunity by being selected as one of two distributors in Jamaica for the prestigious 3M International line, which includes tapes and office products.
Furthermore, SOS is expanding its infrastructure to accommodate its growing needs. The company is constructing a new warehouse at 25 Beechwood Avenue, providing an additional 5,000 square feet of space, expected to be completed by the end of August.
Additionally, SOS recently signed a lease for an extra 2,500 square feet of storage space in Montego Bay, further strengthening its capabilities to serve the fast-growing market in the western end of the island.
Overall, Stationery and Supplies Limited’s exceptional performance and strategic initiatives indicate a promising trajectory for the company’s future growth and success in the competitive market.