Mar 2009 Financial News

Neal & Massy incurred TT$1billion debt for BS&T

Mar 11, 2009

TRINIDADIAN conglomerate, Neal & Massy Holdings Limited (Neal & Massy) acquired a debt of TT$1.1 billion (Bds$367 million) as a result of the purchase of the Barbados Shipping & Trading Company Limited (BS&T).

This is according to President and CEO of the Trinidadian company, Bernard Dulal-Whiteway, in his CEO’s Report published in the Group’s Annual Report for the Financial Year ended September 30th, 2008.

He indicated that this $1.1 billion was included in total borrowings for the company, which increased to TT$2.4 billion (Bds$800 million) during the period under review. Of this, $640 million was incurred for the acquisition of BS&T.

The CEO stated that in the current financial year, efforts will be made to “restructure the Group’s debt portfolio as short-term debt accounts for a significant portion of overall borrowings.”

During the year, the Group’s cash generation remained healthy, recording TT$682 million (Bds$227 million) cash inflow from operating activities.

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) increased by 39 per cent from TT$612 million (Bds$204 million) to TT$853 million (Bds$284 million), which is mainly as a result of improved operating profits.

Working capital was said to have increased by TT$171 million (Bds$57 million), primarily due to higher levels of inventories and receivables. This was particularly so in the Automotive & Industrial Equipment and Distribution, Food Manufacturing & Logistics lines of business.

Dulal-Whiteway also stated that net cash used in investing activities totalled TT$1.6 billion (Bds$533 million), of which the purchase consideration for BS&T accounted for TT$1.4 billion (Bds$446 million).

“This was financed in the main by increased borrowing and the issue on Neal & Massy shares. The Group incurred capital expenditure for property, plant and equipment of TT$239 million (Bds$80 million).”

“Dividend payments, including payments to minority shareholders, increased from TT$116 million to $146 million,” (Bds$39 million to $49 million).

The CEO stated that the Group has been fully compliant with all debt covenants as of September 30th, 2008 and has adequate financial resources to support its anticipated short and long-term capital obligations. (RH)


Source:
Barbados Advocate
Wednesday March 11, 2009

http://www.barbadosadvocate.com/newsitem.asp?more=business&NewsID=2431