Caribbean Value Investor – Stationery and Office Supplies Post IPO Performance
After reading the prospectus for Stationery and Office Supplies Ltd (Jamaica Stock Exchange: SOS), I had this to say “…Taking into consideration the fact that ~65% of the funds will be from the IPO will be used to purchase assets, the story of the company and the nature of the business, this is looking very much like Warren Buffett’s purchase a stake of the Nabraska Furniture Mart from Rose Blumpkin.” I suggested, at that time, that the company had the potential to increase sales. In fact, the company stated that funds from the IPO were to be used to acquire real estate for expansion. So stated so done, the company acquired neighbouring property and recently closed St. Joseph’s High School.
The company recorded revenues of $Ja 667 million, a marked increase over the same period the previous year. Gross profit recorded an increase of from $Ja 257 million to $Ja 318.5 million.