Jun 2011 Financial News

Growing losses for Almond

Jun 09, 2011

THE HALF-YEAR FINANCIAL RESULTS of Almond Resorts Limited are out and the picture for the local hotel brand is not getting better.

In fact, losses being incurred by the group are growing, though the share of losses from associated companies fell from $1.12 million to $314 205 for the six-month period ended March 31, 2011.

What’s more, top officials of the tourism entity have conceded that the Almond brand was being negatively affected by the present condition of Almond Beach Village in St Peter as well as the St James property.

According to a recently published unaudited consolidated statement of income, Almond’s loss before including associated companies’ share of losses jumped from $1.35 million to $2.40 million.

Almond, which has three properties in Barbados and another in St Lucia, reported an overall loss for the period of $2.75 million.

The consolidated statement of income which was signed by chairman Arthur Lok Jack and president Ralph Taylor said: “The financial year 2010-2011 is proving to be a challenging one with a ten per cent increase in loss after taxation for the first half of the year. This has resulted mainly from increased losses at Almond Beach Village, which has been affected by the announcement that the property is undergoing major upgrade.”

Lok Jack and Taylor told shareholders that there was an improved performance by associated companies Almond Morgan Bay and Almond Casuarina Beach but the gain in profitability was eroded by Almond Beach Village’s performance.

They noted too that the Almond brand “is being impaired by the present condition of Almond Beach Village and Almond Beach Club, which are in need of upgrade”.

Losses at the hotels had been minimised for the period through various cost-reduction and management initiatives and the customer-service index was significantly improved across all properties, they reported.

“The organisation continues to focus on revenue generation, yield management and operational efficiencies as ways to improve the operational performance, whilst the global tourism industry strives for economic recovery,” Lok Jack and Taylor added. (GE)


Source:
Nation News
Thursday June 9, 2011

http://www.nationnews.com/articles/view/growing-losses-for-almond/