Innovative signs Mayberry Investments as it eyes islandwide expansion
INNOVATIVE Systems Limited (ISL) has signed Mayberry Investments Limited as its financial advisor and lead brokerage firm as it plans to expand across the island and continue the buildout of its business to business (B2B) segment.
Innovative was acquired by Growth-Tech Limited last May and has since made major announcements for its future. This includes $100 million in capital expenditure which will see the business expand to Portmore, Montego Bay, Ocho Rios and Morant Bay. This is on top of a full renovation at its flagship store in Sovereign Centre in Liguanea, St Andrew, and a massive 5,000-7000 square foot superstore in Kingston.
“The path of the company where we saw a low-hanging fruit was on the B2B side of the business. The company was traditionally a retailer of technology and office supplies and we now want to move into the space of the B2B market, hence we went in to hire new team members and refocused that division, which was a small contributor to the overall operation of the company,” said Executive Chairman Garth Walker in an email with the Jamaica Observer last Monday.
While Walker didn’t immediately speak to how the growth objectives would be funded, the Mayberry agreement indicates that there may be some decision to raise capital between debt and equity from the capital markets. This is Mayberry’s fourth major public financial advisory signing in recent times following Dequity Capital Management, Wigton Windfarm and Caribbean Producers (Jamaica) Limited.
“Mayberry is always on the lookout for fresh and cogent partnerships that will be valuable to consumers. We are eager to assist in strengthening the Jamaican tech community through ISL,” said Dan Theoc, senior vice-president for investment banking at Mayberry.
Innovative has already begun to reap the benefits from Growth-Tech’s direction as evidenced by the company achieving its highest level of growth in 35 years. December sales were up by more than 120 per cent, which is another record as well. The company’s sovereign renovation is set to occur during the first quarter of 2023, which is Innovative’s third quarter in their financial year.
Walker indicated that the company is now on the hunt for a permanent chief executive officer to execute the strategic vision of the company. This comes as Innovative intends to set up shop at the Morant Bay Urban Centre in St Thomas which is being developed by the Factories Corporation of Jamaica.
The company is also determining whether or not to set up a standalone location for its Biz Centre, which it plans to expand going forward. The B2B focus for Innovative has seen the addition of new team members and increased investment in that department, which includes additional inventory.
“A lot of the products that we sell on the consumer side are consumed on the business side. These are products that you have to buy on a monthly basis,” Walker added.
Growth-Tech’s key principals include Walker, Ryan Reid and Neil Lawrence who formed the business in September 2017 while Innovative was founded in June 1987 by the Chang family. Other businesses under Growth-Tech include Bumble Bee Digital Agency and Brain Boxx Solutions.
“The business has a 35-year history and has a rich brand equity in the marketplace. It was one of the first companies to form a tech store on the island, and to see the brand has morphed into what it is now, it has only laid the platform for us to take it to higher heights. Innovation is our foundation, therefore we remain committed to meeting our customers’ needs. As such, we have major expansion plans on the table,” Walker closed.