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Financial News

Jan 2007 Financial News

King challenges BS&T companies

Jan 08, 2007

EXISTING businesses within the BS&T have the potential to earn higher profits for the Group.

To this end, the local conglomerate will be seeking better results from them in the coming year.

CEO G. Anthony King has given this assurance to shareholders of the company following what he calls an appreciable improvement in the BS&Ts operations for the year to September 2006.

In his report, King mentioned DaCosta Manning whose improvements contributed to the BS&Ts overall gains, and other retail establishments which worked assiduously in producing better results.

The CEO recalled that in his previous report to shareholders he had called on the BS&Ts subsidiary operations to replace a large measure of the earnings previously achieved through passive investment returns.

I am very pleased therefore to report that trading profits have moved from $21.9 million last year [2005] to $47.5 million this year, said King, who recently completed his second year as head of the BS&T.

Even considering that last years trading results were reduced by a one-time negative impact of about $12 million for various restructuring charges and fire-related losses, the improvement is appreciable ..., said the CEO.

In the 2005 financial year, the BS&Ts results were derived largely from the sale of a portion of shares it held in Neal and Massy.

No such sale took place during the 2006 financial year, King explained.

However, under the revised accounting standard IAS39 for the category of investment in which these shares were held, the restatement of last years income figures has removed all unrealised gains while valuing the realised gain over the original cost at which the investment was established.§

Jewel Brathwaite
The Barbados Advocate
Monday 8th January, 2007