Page 37 - Neal and Massy Holdings Annual Report 2012

35 forward focused
Dacosta Distribution Limited (DDL) had a satisfactory year. The
Auto & Industrial division performed creditably despite sales being
affected by reduction in customer demand in construction activity,
and by the collapse of the sugar industry in Barbados. Toward the
end of the year, the company secured the agency for Turbo Batteries
from Automotive Components Limited in Trinidad and Tobago.
The first shipment is expected to arrive early in the new financial
year. The Texgas division transitioned smoothly to Rubigas, and
completed significant upgrades to its filling plant and cylinder fleet.
The Shipping division had an improved year overall with gains in the
first half of the year. The second half saw huge declines in volumes,
which translated into much reduced income from commissions.
During the year, work was done to establish an alternative food
and general merchandise distribution business in DDL. This operation
commenced business in October 2012. A nucleus of smaller brands
currently represented by SBI has been placed under this new banner.
Several suppliers have expressed an interest in having their brand
represented within the new operation. This division will provide
the avenue to further expand its distribution business in Barbados,
and to solidify its reputation as the partner of choice for principals
seeking representation for their brands on the island.
Knights Limited’s (trading as Rainbow Paper Products) results
improved slightly over the previous year, despite stiff competition
from international suppliers of popular brands of tissue paper
products. The food packaging division of this business had another
good year.
Our Jamaica operations NMH Trading & Distribution (Jamaica)
Limited (HD Hopwood) showed significant improvement in the
second half of the year, as a new and more experienced management
team, appointed in the second half of the year, has refocused the
company and set it on an aggressive path toward growth. The
company achieved ISO 9001:2008 certification in July, and secured
a number of new significant agencies toward the end of the year,
developments that will serve to position it favourably for the year
ahead. HD Hopwood’s results were negatively impacted by the slow
economy in Jamaica and uncertainty surrounding the stalled IMF
agreement, which resulted in an overall contraction in spending.
As with many other Caribbean territories, this trend is expected to
continue, as consumers adjust spending habits because of reduced
disposable income.
The operations of Windsor Laboratories were closed at the
end of the financial year, as its major principal, KAO Brands, opted
to supply Caribbean markets from its overseas plants, rather than
continue manufacturing a limited product range in Jamaica. With
the loss of this business, the Windsor operation was no longer viable,
and the decision was taken to close it. HD Hopwood has, however,
retained representation in Jamaica for an expanded range of Jergens
products.
Operating out of Miami, Florida, Neal & Massy Inc. (NMI)
enjoyed further growth during the financial year. Key to this was the
acquisition of the Valrico brand in May 2012, as well as a substantial
increase in sales of Sharp electronics. The acquisition of Valrico has
furthered NMI’s strategic expansion of its customer base and the
markets it serves throughout the region. The company doubled its
customer base during the year, and is now doing business in almost
every market in the Caribbean region.
Melville Shipping Limited (MSL) has responded positively
to the challenges and evolving changes in the global and local
shipping industry. The company achieved its financial targets and
has sustained growth in key sectors, while expanding its range of
services. MSL has also maintained its ISO 9001:2008 certification.
It continues to improve on customer service, thereby maintaining
its industry-leading position.
Huggins Shipping & Customs Brokerage Limited (Huggins),
in another successful year, again exceeded its financial targets. ISO
9001:2008 standards have also been maintained in keeping with the
company’s strong customer and quality management focus. During
the year the Customs & Excise Asycuda World was introduced,
bringing with it improved efficiencies that positively impacted our
customer base, but also changes which will, no doubt, require the
company to reinvent itself in years to come. Huggins continues to
work on expanding the range of services offered to customers, to
sustain growth, as well as to defend its position as the total logistics
provider of choice in Trinidad and Tobago.
Booth Steamship Company (Barbados) Limited (Booth
Steamship) experienced some challenges this year arising from over
capacity in the industry and lower volumes into Barbados, fuelled by
fierce price-based competition among shipping lines. Despite this,
the company was able to grow its business and improve its share of
the inbound business into the island. Booth Steamship continues