Business: Deliberately Dynamic Derrimon Doubles Down

In what ultimately proved a routine meeting - despite some resistance to a stock split - wholesale and retail multi-entity purveyors Derrimon Tarding (DTL) presented its year-end financials for 2017 to a largely approving gathering of shareholders at it s customary venue, the Knutsford Court hotel in Kingston.

Co-founder and CEO Derrick Cotterel (left), aided by Financial Chief Ian Kelly and Company Secretary (and wife of the CEO) Monique Cotterel gave a presentation that warmed the hearts of investors, with healthy topline and profit growth, and with both its retail property - select Grocers in Manor Park and the midtown wholesale facility Sampars showing robust turnover. Derrimon operates eight retail stores in total, including seven Sampars and the Select Grocers outlet .

The CEO said the company - which he frequently described using thew words "deliberate" and "dynamic" was looking to continue in an expansionary mode, albeit at a moderate pace. In response to a question from this writer after the meeting, Cotterel indicated that the company was looking westward in terms of an ideal location.

​Derrimon is also in the process of upgrading its software to allow shoppers to scan items in-store   as part of a step towards digital checkouts, which are expected to lower costs over time.

At the meeting, Cotterel formally welcomed the newest subsidiary, pallets and crates manufacturer Woodcats International, which he described as " a very well run company, and one which will provide tremendous synergies for Derrimon going forward." 

Derrimon Trading  posted gross revenues of  J$6.7billion, an increase of just under 9% over the previous year's figures, with net profit of J$282 million. The stock price, closed the financial year at $7.91, up 43%.

A resolution to split the stock by a 10:1 ration came under sustained resistance from shareholder Wesley Thomas, even after the Directors indicated that the move would generate increase the liquidity and the trading volumes of the stock, by making a greater quantum of share available to prospective buyers. Thomas was largely unmoved, but the Resolution passed over his dissent.