Durrant Pate/ Contributor

Jamaican contract furnishing company, JFP Limited, is selling off under-utilised non-core assets in its control to enhance its balance sheet and operational efficiencies.

This comes at a time when the company is losing considerable value with shares trading at well below its Initial Public Offering (IPO) price of $1 per share. In trading yesterday, the share price closed at $0.56, nearly half of its IPO price, with 7,994 shares exchanging hands. 

It has started the process of offloading under-utilised non-core assets by selling properties adjoining its factory and head office on Spanish Town Road for an undetermined sum of money running into millions of dollars.  The decision to dispose of the properties aligns with the company’s objective of unlocking the value of under-utilised non-core assets to enhance balance sheet and operational efficiencies.

JFP in a regulatory filing with the Jamaica Stock Exchange, where its shares are traded on the Junior Market, advises, “the sale of the properties will have no impact on JFP’s current manufacturing operations”, but represents a big boost in its balance sheet. 

Proceeds of the sale

The proceeds of the transaction are expected to be reinvested in the core operations, support ongoing strategic initiatives and take advantage of other investable opportunities aimed at improving the firm’s future financial performance. The transaction was completed earlier this month and will be reflected in the financial results of the current 2^nd quarter, which ends next month.

In its latest quarterly financials for the March 2025 period, net profit slumped to $475,000, down from $3.8 million in the previous year. Revenue for the quarter ended March 2025 amounted to $112 million, reflecting a 30% decline from $159.8 million recorded in the corresponding period last year. 

Despite the decline in revenue, the cost of sales went down significantly by 46% when compared to the corresponding period last year, highlighting improved operational efficiency and stronger cost management practices.