Aug 2011 Financial News

‘The pie may be shrinking but we want a larger slice’

Aug 18, 2011

The ANSA McAl Group of Companies has had its best six-month financial performance in its history with a reported profit before taxation (PBT) at $426 million, up by $24 million or six percent with an Earning Per Share (EPS) of $1.64 (an improvement of eight percent) and net profit margins improved by one percent.

Chairman and chief executive officer of the group Norman Sabga made the announcement last Thursday at a meeting of the unaudited results for the six months ended June 30, 2011 at the TATIL building in Port-of-Spain.

Sabga also revealed revenues were up by $46 million over 2010 and $150 million of debt was repaid out of free cash. An interim dividend of 30 cents was also approved and will be paid to shareholders on November 11, 2011.

In the six months ended June 30, the Manufacturing, Packaging and Brewing segment recorded a profit (before tax) of $180.1 million with assets of $2.4 billion and liabilities of $899.3 million.

The Automotive, Trading and Distribution segment reported a profit of $59.1 million with assets of $1 billion and liabilities of $324 million.

Before tax profit of the Insurance and Financial Services was reported at $117.9 million with an asset base of $5.3 billion and liabilities at $4.5 billion.

Media, Services and Parent Company’s profit was recorded at $68.4 million, assets of $2.8 billion and liabilities of $653.3 million.

The group’s overseas operations also performed well. It was noted the Ansa McAl Barbados Limited acquisitions were completed in the second quarter.

Also, for five years Ansa was a 40 percent shareholder in a chain of supermarkets that were not performing well.

They acquired 100 percent of the shares which incurred tax losses of Barbados $18 million. However, within two months of running the business, the supermarkets turned a profit.

Sabga credits the company’s growth with investing in improving processes and the determination to be better.

“From a manufacturing standpoint, we have been investing heavily in our controls and ability to manage our business,” he said.

That included upgrading their IT systems, training their employees and generally improving their operations.

“The pie may be shrinking but we want a larger slice,” he said, “It is that determination, it is that desire, it is that commitment to keep growing within that area, we believe is the hallmark of the Ansa McAl group. Our companies and executives are always challenged to try and get a larger share,” he said.

Sabga also announced Nigel Romano as Ansa’s new Sector Head of Financial Services and Ray Sumairsingh as the group’s new Automotive Sector Head.


Source:
By Janelle De Souza
Newsday
Thursday August 18, 2011

http://www.newsday.co.tt/businessday/0,145806.html