May 2014 Financial News

Lok Jack stepping down

May 13, 2014

ARTHUR Lok Jack is stepping down as chairman of the Neal and Massy Group of Companies. Lok Jack made this disclosure in his statement contained in the Group’s unaudited consolidated financial statements for the period ended March 31, 2014. In that statement, Lok Jack said the Group’s revenue for the first half of the 2014 financial year increased by 10.6 percent to $5.6 billion.

“As this is my last statement as Chairman of the Neal & Massy Group of Companies, I would like to thank the Board of Directors, the Executive Team, our customers and our shareholders for your support and partnership over the last ten years.” Lok Jack, who was appointed to the Neal and Massy Board in 1998 and became chairman in June 2004, said, “I am pleased to pass the role of Chairman to Robert Bermudez, an exceptional businessman and leader, who I am sure will lead this Board of Directors, and by extension our Company to even greater as it enters new territories such as Central and Latin America and as it expands into new industries such as downstream petrochemicals.”

Lok Jack said he was pleased to witness the Group’s steady growth during his tenure as chairman, “quadrupling profits over the period 2000 to 2013.” He stated the Group “stands strong, fully prepared and well poised for future growth with over 10,000 employees, a balance sheet with almost $9 billion in total assets and a low Debt to (Debt + Equity) Ratio of 32 percent.”

Lok Jack said Group Profit Before Tax (PBT) increased by 2.1 percent to $410 million and Group Earnings Per Share increased by two percent to $2.73 per share. Accordingly, he said the Group’s directors have declared an interim dividend of $0.51 per share, which is two percent above last year’s interim dividend of $0.50.

He indicated the Energy and Industrial Gases Business Unit and the Distribution and the Consumer Finance Lines of Business in the Integrated Retail Business Unit continued to perform well, each producing double-digit PBT growth for the first half of the financial year. Lok Jack said Insurance, Logistics and Investment Properties were the only units for which PBT declined in the first half of the financial year.

“Our Barbados operations continue to be adversely affected by the challenging economic conditions in that country. Revenues from our subsidiaries in Barbados declined by four percent while profits from subsidiaries and associate investments declined by 15 percent.

Having dispensed with its “Held for Sale” assets (Discontinued Operations) in 2013, Lok Jack said, “The Group is now fully focused on the growth, expansion and strengthening of its operations. Fortified with a strong balance sheet, the Group has started making several strategic investments in new industries and territories and in the expansion of existing businesses,” he stated.

Given the excess liquidity in this country’s financial markets, Lok Jack said, “The Group is taking the opportunity to restructure its debt portfolio and to raise capital to fund its investment opportunities by issuing bonds for $1.2 billion. The bonds will be issued in up to three series, ranging in tenure between 7-15 years. Approximately $700 million of the proceeds will be used to replace shorter-term debt with the longer-term bonds and $500 million is earmarked for new investments.”


Source:
Newsday
Tuesday May 13, 2014

http://www.newsday.co.tt/business/0,194687.html