Page 14 - Neal and Massy Holdings Annual Report 2012

12 2012
HIEF EXECU
Chief EXECUTIVE Officer’s Report
Recap of 2012
The Neal & Massy Group of Companies continued to perform
strongly throughout 2012. The Group’s Profit Before Tax (PBT) from
Continuing Operations grew by 25.4 percent from $640 million
to $802 million, a record high for the Group. The improvement
was primarily driven by the growth in the Automotive & Industrial
Equipment Business Unit and the Guyana Group and by the non-
recurrence of one-off expenses and charges, which were incurred
in 2011. The Group also demonstrated healthy Third Party Revenue
growth of 7.6 percent in 2012, growing from $8.5 billion in 2011 to
exceed $9.1 billion in 2012. Earnings Per Share (EPS) fromContinuing
Operations of $5.13 was also 23 percent above EPS from Continuing
Operations in 2011. Substantially reduced losses from Discontinued
Operations resulted in an overall EPS of $4.87, almost five times the
Overall EPS of $1.02 reported in 2011.
The Group is approaching the end of its restructuring arising from
the BS&T acquisition and the fallout from the 2009 global economic
recession. While the sale of the remaining Almond hotels has not
happened as quickly as we would have hoped, we are happy to
report that Almond Beach Club was sold to Elite Island Resorts in
July 2012 and meaningful progress is being made on the sale of
the remaining Casuarina and Beach Village properties. In 2012, the
decision was taken to close the Almond Beach Village hotel and all
costs associated with the closure were booked. The operating losses
going forward until the eventual sale of the remaining properties,
have therefore been minimized.
In 2011, the Group incurred a number of one-off charges against
property revaluations in Barbados, for provisions within the insurance
business related to exiting the international inward reinsurance
business, consulting services for the strategy engagement with
McKinsey & Company and for pension and other head office
adjustments. None of these charges or expenses were repeated in
2012 and this assisted in the overall profitability improvement from
Continuing Operations.
E. Gervase Warner
Pesident and Group
Chief Executive
Officer