Page 10 - Neal and Massy Holdings Annual Report 2012

8 2012
The Neal & Massy Group of Companies has rebounded from the
difficult year in 2011 reporting a record-setting $802 million in Profit
Before Tax (PBT). With Revenue growth of 7.6 percent, the Group’s
Earnings Per Share (EPS) from Continuing Operations increased by
23 percent to $5.13. After Discontinued Operations, the overall EPS
was $4.87, which is almost five times the overall EPS from 2011,
as the charges associated with the Almond Resort Inc. assets were
not repeated in 2012.
These results reflect the strength and resilience of the Group. The
difficulties encountered after acquiring the BS&T group of companies
and the impact of the financial and economic crises which began
in the Caribbean in 2009, are almost completely behind us. The
Group’s Executives now have more time to focus on the strategic
growth plans for Neal & Massy.
While the economies in which the Group operates continue
to mostly struggle, diversity of the Group has helped to secure
growth in difficult times. The Group was ably assisted by growth in
the Automotive & Industrial Equipment and the Integrated Retail
Business Units in Trinidad, the group of companies in Guyana and
by the turnaround of the performance of the Insurance operations.
In Trinidad and Tobago, the economy contracted by 3.6 percent
and the energy sector, the mainstay of the economy, contracted by
7.3 percent. However, bpTT’s announcement in November 2012 of its
gas find in its off-shore Savonette field, provides a source of optimism
for the supply and availability of natural gas and signals anticipated
improvement in the performance of the sector. The petroleum sector
continues to dominate Trinidad and Tobago’s output, recording a 46.8
percent contribution to GDP. Non-energy output decreased by 0.7
percent, with the construction component decreasing by 3.7 percent.
Neal & Massy is seeking to deepen its involvement in the
downstream sector through its participation in the recently
announced multi-national Consortium to engineer, construct and
operate a natural gas-based integrated chemical complex in La Brea.
Gervase Warner in his CEO’s report will further describe this project,
its phases and potential for creating additional growth opportunities
for the Group through the introduction of new manufacturing
sectors to Trinidad and Tobago.
CHAIRMAN’S REPORT
HAIRMA
ARTHUR LOK JACK
Chairman