MFS targets top-line growth after acquiring stationery supplier

MFS Capital Partners Limited expects its latest acquisition to do more than diversify earnings. The Junior Market company said the purchase of Century Business Machines Limited (CBM) will add a new stream of operating revenue, reduce reliance on financial services income, and create a platform for another publicly listed business within the next two years.

MFS recently fully acquired CBM, making the office products and technology solutions provider a wholly owned subsidiary after all closing conditions were satisfied. The company said the transaction aligns with its strategic goal of diversifying products, expanding operations and strengthening balance sheet growth.

Chief Executive Officer Dino Hinds said the acquisition fits squarely within MFS’s investment strategy of buying established businesses with predictable annual revenues and growth prospects.

“As you know, the strategy is to acquire companies which are generating revenues of over $100 million. So we don’t want start-ups, we want companies that already reached a relatively stable level in terms of their life cycle, and are poised for growth,” Hinds told the Financial Gleaner.

The deal also marks a deliberate shift away from MFS’s historical dependence on financial services income. Its flagship subsidiary, Monolith Financial Services Limited, operates in cambio trading, remittances and private credit – segments that generated virtually all of the group’s $147.1 million in revenue for the year ended June 2026.

“So far, almost exclusively, all of our revenues were from the financial sector,” Hinds said. “We wanted to diversify our holdings a little bit more. This gives us a better, stronger footing to navigate changes in the economy.”

The annual report flagged the plan explicitly, listing among its key areas of focus: “Acquisition of a new company in a different sector by the 1st quarter of the upcoming financial year. As currently, our flagship company specialises in the financial sector providing financial products and services.”

CBM operates as a stationery, office equipment and technology solutions provider. Beyond selling office supplies, computers and laptops, the company designs and equips workspaces, providing end-to-end office set-up services for corporate clients.

Rather than overhaul the operation, MFS intends to use CBM as a growth platform. Hinds said the company plans to deepen relationships with overseas suppliers, secure exclusive distribution arrangements and broaden its product range.

“We think that the path for us has already been mapped out,” he said, adding that the long-term objective is “looking to take the company public within another two years”.

Under MFS’s operating model, CBM will continue functioning as a revenue-generating business, while administrative functions are centralised.

“Our model is one where we have a shared service system,” Hinds said. Human resources, accounting and marketing functions will be handled by the parent company, allowing subsidiaries to focus on sales and business development. The arrangement is expected to improve efficiency and lower costs across the group.

Investors should see the financial contribution quickly. Hinds said approximately six weeks of CBM’s revenues will be reflected in MFS’s next quarterly results.

For the year ended June 2026, the group reported revenue of $147.1 million, up two per cent from $143.7 million, while profit before tax reached $122.6 million, down from $142.5 million after the impact of Hurricane Melissa weighed on second- and third-quarter performance. The group has completed a notable financial turnaround, erasing an accumulated deficit that stood at $78.3 million a year earlier and swinging retained earnings to a positive $16.9 million. Total assets stood at $923.3 million and shareholders’ equity at $388.2 million.

On staffing, Hinds signalled that any restructuring would be gradual.

“We expect that there will be some efficiencies; we expect that there will probably be some amount of overlap, but these will smooth themselves out over time. Whatever separations that may occur would be the normal attrition,” he said.

neville.graham@gleanerjm.com