CAC 2000 Ltd has returned to profitability for the first time in four quarters, delivering a modest second-quarter profit as management intensifies efforts to collect outstanding receivables, manage debt obligations, and stabilise cash flow amid a prolonged restructuring of the business.
The Junior Market-listed air-conditioning and energy solutions company reported net profit of $3.7 million for the quarter ended April 2026, up 49 per cent from $2.5 million in the corresponding period last year. The result marked a significant turnaround from a string of quarterly losses that culminated in a $176.2-million loss for the year ended October 2025.
Despite the quarterly improvement, CAC remained in the red for the six-month period, posting a net loss of $69.8 million, compared with a loss of $56.1 million a year earlier as revenue contracted sharply.
Efforts to get clarification proved futile as outgoing CEO Gia Abraham was unavailable.
Revenue for the six months declined 47.9 per cent to $226.1 million from $433.7 million in the prior-year period, while second-quarter sales fell 40.6 per cent to $144.6 million. However, tighter cost controls and a stronger sales mix lifted margins, allowing the company to squeeze out a quarterly profit.
In commentary accompanying the results, management pointed to “improved margins and disciplined cash management” as the principal drivers behind the return to profitability. The company reported that gross profit margin improved to 41.7 per cent for the half-year from 34 per cent a year earlier, while the second quarter generated a gross margin of 48 per cent.
A major plank of the turnaround strategy has been preserving cash and improving collections. Management said revenue trends reflected “the company’s continued focus on credit quality and cash-generating activity”, underscoring a deliberate shift away from business that could strain already-pressured cash resources.
That emphasis showed up in the cash flow statement. CAC generated positive operating cash flow of $43.8 million during the six months, a substantial improvement from a $16.4-million cash outflow in the corresponding period last year. Management attributed the change to disciplined working-capital management, including reduced trade receivables and improved management of payables.
The company’s focus on collections appears increasingly critical to its survival strategy as it continues to carry a heavy debt burden. Total borrowings stood at $447.3 million at April 30. Management disclosed that it remains engaged with lenders regarding covenant arrangements and reported that waiver letters from BNS Investment are in place through to October 31, 2026.
Those arrangements effectively provide breathing room while the company works through its obligations and attempts to rebuild profitability and shareholder equity, which stood at $118.5 million at period end, down from $308.7 million a year earlier.
Investors also received news of a leadership transition. In a notice posted to the Jamaica Stock Exchange on July 1, CAC advised that CEO Gia Abraham would demit office effective July 1 after five years as CEO and 25 years of service to the company. Abraham said the decision was made for personal reasons. She will remain a director and assist with specific internal projects during the transition period.
The board has appointed Executive Chairman Steven Marston to assume the additional role of chief executive officer while continuing as chairman. According to the company, Marston worked closely with Abraham during the transition to ensure operational continuity.
For now, the challenge facing Marston is clear: sustain the hard-won return to quarterly profitability, accelerate receivables collections, and maintain support from creditors while steering CAC 2000 back to consistent earnings growth. Management said its immediate priorities remain “accelerating receivables collections, sustaining margin discipline, and managing the company’s debt obligations in conjunction with its lending partners”.
neville.graham@gleanerjm.com
