Paramount rolls along with more profits

Paramount office

Paramount office

Junior market listed, Paramount Trading reported another quarter of increased revenues and profit with growth of 17 percent in sales to end at $238 million and profit of $42.6 million, an increase of 25 percent for the August quarter over that of 2014. Cost of sales increased by 12 percent much slower than the growth in revenues, leading to an upward movement in gross profit margin, from 32 percent to 34 percent. Distribution cost jumped 70 percent but from a small base, to reach $710 million while administrative cost excluding depreciation, rose 36 percent to $38 million. Finance cost fell from $1.8 million to $1.3 million.
“Year over year, operating expenses as a percentage of total revenue increased 16.9 percent versus 14.9 percent as the company continued to strengthen its team and streamline operations. Paramount has a positive outlook for the rest of the year as it continues to aggressively pursue growth opportunities,” Hugh Graham, CEO & Managing Director stated in a report to shareholders accompanying the financials.
During the quarter the company generated $44 million in cash from operations and ended up with new cash funds of $69 million after reducing the level of receivables by $20 million, payables grew by $33 and Inventory rose by $15 million, putting cash and equivalent at $164 million at the end of the August.
Some of the products the company handles

Some of the products the company handles

The principal activity of the Company is importation and distribution of chemicals and other related products including “SIKA” branded hardware products, whose line of products include anchoring adhesives and sealants principally distributed to the commercial hardware market.
Earnings per share for the quarter ended at 28 cents compared with 22 cents, in the August 2014 quarter and 95 cents for the 2015 year that ended in May. IC Insider forecast $1.45 per share for the full year. The stock trades at $6.10 on the Junior market, placing the PE ratio at 4 with much room for growth in the stock price with nearly half of the junior stocks valued at an average of 8.6 times current year’s earnings with all of those above 7.7 times.
The company will be considering a dividend at a directors’ meeting to be held on Thursday, October 29. The last dividend paid, was 15.1 cents per share on December 12, last year and in December 2013, 13.5 cents. With the 2015 full year profit being up by 57 percent over 2014, investors should see an increase to about 23.5 cents per share being paid this time around.

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  1. […] market listed Paramount Trading will be heading back to the stock market soon to raise additional capital to help fund the […]

  2. […] Paramount Trading will be paying a final dividend of 39 cents on November 23, 2015 to shareholders on record as at November 12.The ex-dividend date is November 10, 2015. The company made profit of 95 cents per share for the fiscal year to May 2015 and 61 cents in 2014. The 2015 payment represents 41 percent of profit and equates to a dividend yield of 14.89 percent based on the price of $2.62 at the start of the year. For the quarter ending August earnings grew 27 percent to 28 cent per share versus 22 cents in the same period in 2014. Paramount Trading paid a dividend of 15.1 cents per share payable on December 12 last year. the company’s shares are listed on the junior market of the Jamaica Stock Exchange and last traded at $7.10. […]

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