Solis maintains ‘strong’ balance sheet despite profit dip
Written by Andrew Gioannetti on December 12, 2024
MARKETING solutions provider Eric Solis Marketing (Solis) has reported a solid cash position of $10.69 million as of October 31, driven by proceeds from its recent initial public offering (IPO).
While net profit for the first half of the financial year declined to $1.14 million from $1.39 million, the company’s shareholders’ equity rose by 12.5 per cent to $18.09 million.
“Solis’ balance sheet remains strong with shareholders’ equity of $28.09 million as of October 31, 2024,” chairman Angella Persad noted in the unaudited half-year summary results on December 10.
The reduction in profit was attributed to increased administrative costs stemming from warehousing and compliance expenses linked to the IPO.
She noted a slower demand for multifunctional devices compared to the previous financial year and attributed it to “a cautious economic outlook” and delayed tender results.
Despite this, she reaffirmed the company’s commitment to diversifying its product portfolio and expanding into new markets to mitigate the impact of these challenges.
During the reporting period, Solis launched its Samsung line of digital display devices, which Persad said is already gaining momentum following an open house in November.
“We sold our first devices during this period and are pursuing several active leads.
“We are excited about the new Samsung line as the prospects for growth are meaningful.
“It provides a diversified customer segment for Solis as it targets the retail and quick service restaurant markets.”
She said the company recruited a sales manager to drive organic growth and is actively pursuing opportunities for inorganic growth to deploy the capital raised in the IPO more rapidly.
Persad also highlighted improvements in its quarterly-measured customer service delivery levels, which reached 93 per cent, up from 92 per cent in the first quarter and 88 per cent at the end of the last financial year.
Administrative expenses for the period were $2.19 million, an increase attributed to compliance and operational investments. Selling costs also rose to $1.26 million.
The company’s core retained earnings increased by 12.5 per cent to $18.1 million. Operating cash flows remained positive at $1.9 million.
The post Solis maintains ‘strong’ balance sheet despite profit dip appeared first on Trinidad and Tobago Newsday.
