Jan 2008 Financial News

Takeover mess hurts BS&T's performance

Jan 14, 2008

MERGER AND TAKEOVER moves at Barbados Shipping & Trading (BS&T) have affected its executives' focus and influenced the company's financial performance.

This was the assessment of BS&T chairman Sir Allan Fields and chief executive officer Anthony King at the close of the conglomerate's financial year, September 30.

"This exercise has been a great distraction to the entire executive team at BS&T and we need to put this behind us . . . . We are hopeful that a final determination will be made in this matter as soon as possible," stated Sir Allan in BS&T's latest annual report.

Although net income attributable to shareholders increased by 9.3 per cent over the 2006 fiscal year to $35.021 million, King noted that it was also "an extremely demanding year for the company's management and staff".

He commended those who "worked to maintain employee morale over this most trying period".

Trading profits for the year increased by 7.3 per cent to $50.7 million. But financial performance was moderated by, among other things, "Various one-off and unusual costs [that] were incurred not only in respect of obtaining professional services in contemplating the proposed merger, but also due to the legal and other costs in connection with related matters brought before the court.

"In addition, costs arose in responding to the various bids that ensued through professional services and the production and distribution of bid response circulars," King reported.

The majority of BS&T shareholders have pledged their shares to Trinidadian company Neal & Massy which is trying to effect a takeover of the company. (SR)


Source:
The Nation Newspaper
Monday January 14, 2008

http://www.nationnews.com/story/337896923534500.php