Page 47 - Neal and Massy Holdings Annual Report 2012

45 forward focused
OTHER INVESTMENTS
Despite a slow-down in the Real Estate and Property Management
Industry, Nealco Properties Limited (NPL) exceeded its budgeted
revenue through concerted efforts on customer retention and the
provision of brokerage services to customers who required services
outside of NPL’s portfolio. Assisted by rigorous cost management
initiatives, the company surpassed both its profit and Shareholder
Value Added goals. In the new financial year, management will
execute similar strategies and techniques to continue to improve
its performance.
Nealco Real Estate Limited (NREL) continues to be profitable
despite a slow-down in sales in the real estate market. The company
continues to pursue new property management clients and to
improve on its service to its existing customer base.
SP Musson Son & Company Limited (SP Musson) enjoyed
a more profitable year, when compared to the prior year’s
performance. It should be noted that two unusual, one-off
transactions were responsible for the improved results: the sale of
land to the Barbados Government and the amalgamation of the
property holding entity, Dacosta Mannings Inc. The company also
benefited from land sales at Aerowoods Development in St. Philip,
but the core rental business did not perform as expected given the
recent trend of businesses relocating outside of Bridgetown. The
redevelopment of the Autodome in Warrens offers SP Musson the
potential for revenue growth in the near to medium term.
Roberts Manufacturing Company Limited (50.5 percent)
produces vegetable oils and margarines, while its joint venture
subsidiaries of Pinnacle Feeds Ltd and VitaPet Ltd, manufacture
animal feeds and dog chow respectively. Profits for the year improved
through a mixture of cost controls and revenue improvement. While
the economic recession continued to affect many of the territories
in which the companies’ products are sold, sales of certain products
grew in Trinidad. The drought experienced by the USA mid-west
brought significant increases in the cost of soybeans and corn, which
OTHER INVESTMENTS
505
83
7
517 126
10
2011 2011 2011 2012 2012 2012
600
500
400
300
200
100
0
150
100
50
0
10
5
0
Revenue
TT$M
PROFIT BEFORE TAX
TT$M
*RONA
% (PAT/AvERAGE Net AssetS)
INcrease 2011-2012
2%
Increase 2011-2012
52%
* RONA (Return on Net Assets)