Sales at Blue Power, for the quarter to July, were $278 million, an increase of 13 percent over the $246 million for the same period in 2013. The Lumber division enjoyed a 5 percent increase, from $174 million to $185 million, while sales for the Blue Power division, jumped impressively, by 33 percent, from $70 million to $93 million.
The Lumber division in the 2013 quarter, benefited from significant sales to one client, which was not repeated in the recent quarter.Blue Power recorded profits of $29 million, compared to $30 million in the same period last year. The Lumber division delivered $6 million of the overall profit, compared to $18 million in 2013, while the Blue Power division made $23 million versus $12 million in 2013. Earnings per stock unit, moved down slightly from 53 cents to 51 cents. IC Insider forecast earnings of $165 million or $2.90 per share, for the year ending April 2015, and $3.40 for the following year, which will see taxes being applied at half the regular tax rate for companies.
The Lumber division’s profit was negatively affected by bad debt provisions made, for receivables which were due for over 90 days. The provision pushed administrative and other costs to $40.35 million, up $12.4 million, from the $28 million in 2013.
Gross profit margin improved with the higher sales from the Soap division, moving to 31 percent for the latest quarter versus 28.4 percent in the 2013 period, and 26.4 percent, for the twelve months to April this year.
Blue Power had no loans the end of July, but had cash and bank balances of $156 million, with the forecasted profit, the amount should increase to well over $250 million by the fiscal year end. Current assets stand at $460 million and current liabilities $65 million. The latest results has confirmed the stocks Buy Rated stamp of approval.
Blue Power Q1 profit flat, upturn ahead
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[…] Trading ended trading with 10,000 shares while gaining 78 cents to close at an all-time high of $4, Blue Power ended trading with 2,350 shares trading at $6.50, Lasco Financial ending with 14,798 shares changing […]
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[…] closed at a new all-time high, on the junior market on Tuesday, but with only a small volume and Blue Power was by far the leading trade with a value of $3,370,500. Activity elsewhere saw trading in only 6 […]
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[…] Blue Power released six months results to October, showing profits of $52 million compared to $55 million in the same in 2013. For the three months, profit declined to $22.8 million from $25.2 million as the lumber division contributed lower revenues than in 2013. Lumber division revenue fell from $366.8 million in 2013 and that of the Soap Division grew from $154 million to hit, $360.8 million and $175.7 million respectively, resulting in total revenues falling 6 percent in the October quarter to $259 million and rising 3 percent for the six months to $536 million. Sales in the Lumber Depot division fell from $191 million last year, to $176 million this year, there were some one off sales, in 2013. Profit in the lumber division fell as well, from $29 million to $17 million for the half year. Notwithstanding, pressure on sales, margin improved during the year. The company held a tight lid on cost in the latest quarter, but administrative cost climbed 20 percent for the six months. Earnings per share are still strong at 91 cents and should go on to approach the $2 level, by year-end. The stock last sold at $6.50, is undervalued and should enjoy some recovery in price. IC Insider is maintaining its BUY RATED status on the stock although a return to growth in profit s may have to await the 2016 fiscal year. The stock is listed on the junior market of the Jamaica Stock Exchange. The company primarily manufactures soaps and trade in Lumber. […]
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[…] the Junior Market closed with only 5 securities traded, with the price 1 advancing and 2 declining. Blue Power closed at a new 52 weeks’ low, of $6.05, on small volume. Trading in junior market stocks, ended […]
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[…] Junior Market closed trading with 767,730 units valued at $1,243,917 and Blue Power hitting a 52 weeks’ low. Tthe JSE Junior Market Index fell 2.86 points to close at 663.54 as only […]
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[…] Trades| Stocks in the junior market that traded to close at the same price as the day before are, Blue Power with 6,000 shares at $9.05, Jamaican Teas 4,000 units at $3.30, KLE 15,846,209 units at $1, […]
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