Page 39 - Neal and Massy Holdings Annual Report 2012

37 forward focused
The Consumer Finance Line of Business was formalised
following completion of the Group’s five-year strategic plan in
October 2011. The focus for the year was to build a more cohesive
unit, together with a robust platform on which to grow our
portfolio of finance products. Specific focus and attention are
being placed on our revolving credit portfolio in Barbados, where
we have a significant penetration. Consumer finance, including
loyalty programmes, is the linchpin for the Integrated Retail Business
Unit. We continue to develop our capabilities that will enhance the
offering to both our existing and growing customer base.
General Finance Corporation Limited (GFC), our financial
services company in Trinidad and Tobago, experienced a marginal
increase in new business volumes following four years of steady
decline. To address the challenge of a shrinking loan portfolio, GFC
sought to increase the penetration of financing motor vehicles sold
by Neal & Massy Automotive Ltd., an effort which began to bear
fruit, particularly in the latter half of 2012.
Our cost of funds continues to reduce in line with market
conditions. The company’s prudent approach to funding
requirements resulted in a further reduction of the Fixed Deposit
portfolio, and consequently interest costs. The level of delinquency,
trending lower than industry standards, improved over last year.
We wish to remember and pay tribute to Vishnu Tewari, a long-
standing Chief Executive Officer of GFC, who passed away suddenly
in June 2012. Vishnu’s leadership was an integral part of GFC’s
turnaround and success.
N&M Remittance Services Limited (NMRSL), which operates
the MoneyGram money transfer service in Trinidad and Tobago,
continued to experience increases in transaction volumes compared
to the previous year. This growth was achieved despite a slowdown
in the US economy, the main source market for remittances.
In fiscal 2012, NMRSL was awarded the “Top Send Agent
2011” by MoneyGram International, in recognition of its excellent
achievement and outstanding business growth. Operating expenses
have been maintained at the previous year’s levels, and this has also
contributed to improved results. A strategic marketing plan has
been implemented to drive growth in the upcoming year, and we
are proud to mention that over the past six months, the number of
operating agents has increased by about 50 percent.
Magna Rewards Inc. (Magna) is our loyalty services company
operating a coalition programme in six countries, with 1.35 million
customers within the Caribbean. Magna once again performed
above expectations on a consolidated basis. The largest growth
market for 2012 was in Jamaica, due to strong organic growth
THOMAS PANTIN Group Senior Vice President & Executive Chairman
General Finance Corporation Limited
N&M Remittance Services Limited
Magna Rewards Inc
Medicard Limited
INTEGRATED RETAIL: CONSUMER FINANCE LINE OF BUSINESS