Jul 2016 Financial News

Construction decline hits Readymix revenue

Jul 26, 2016

A decline in construction activity in the first half of the year has resulted in a 44 per cent decline in revenue for T&T’s largest pre-mixed concrete supplier, Readymix (West Indies) Ltd.

The company’s interim consolidated financial report for the six months ended June 30 show that concrete and aggregate sales volumes for the second quarter of 2016 were lower than for the corresponding period in 2015 by 42 per cent and 39 per cent respectively.

In a statement accompanying the report, which was posted on the T&T Stock Exchange, chairman Nigel Edwards and director Luis Gilberto Ali Moya, said competitive forces in the construction sector had put downward pressure on the prices of the company’s concrete and aggregate products. As a result, the second quarter revenue of $38.2 million was down by 44 per cent compared to second quarter 2015.

They told shareholders: “In the circumstances, we have been focused on cost management and cost containment. Notwithstanding, additional payroll costs recognised in Q2 negatively impacted results.

“Arising from this, the company recorded a net loss for the second quarter of $2.5 million compared to a profit of $5 million for the comparative 2015 period. For the half year to June 2016, a net loss after tax of $3.2 million was recorded compared to a net profit of $7.5 million in 2015 comparative period.

“Management does not anticipate an improvement in the construction sector for the remainder of 2016, and therefore will continue to focus on cost reduction and improvement in operational efficiency. Notwithstanding the difficult market conditions, management is also focused on increasing market share and exploring new markets.”

Readymix is a member of the TCL Group.

Source:
Trinidad Guardian
Tuesday July 26, 2016

http://www.guardian.co.tt/business/2016-07-26/construction-decline-hits-readymix-revenue