Jun 2004 Financial News

BS&T On Course For 5th Year Of Profit

Jun 28, 2004

With a strong performance in the first six months of its financial year, Barbados Shipping & Trading (BS&T) group is on course to record its fifth straight year of increased profit.
Describing the first half results as “excellent”, chief executive officer, Senator Allan Fields, said the company’s performance for this financial year would be its best year on all fronts.

“The results from the first half of this year are expected to permeate throughout the rest of the year. We have already surpassed the previous year’s performance at the half-year and we also expect profitability for the year to surpass the previous year-end performance,” Fields said.

In the 2004 first-half (unaudited) report to Shareholders, the company reported net income (after tax and minority interest) rose by 76.5 per cent or $13.6 million, and group revenue went up 5.1 per cent or $15.8 million on the previous year’s six months results. The net asset value (after minority interest) increased by 6.5 per cent or $27 million over the previous financial year ending September 30, 2003.

In reinforcing the company’s solid performance, group financial controller Mark Corbin said when compared with the figures for the same period last year, the current financial indicators could be considered “very good”.

“In particular, the net income which everybody zeroes in on went up 76.5 per cent – that is very good. We also have a sound balance sheet. If you look at our cash position at the end of March last year, we were in overdraft $14 million; a year later we have cash in the bank and short-term deposits to the tune of $48 million,” Corbin pointed out.

Fields attributed this profitability to a boost in the economy and a generally better performance by most of the group’s companies.

“I think all the actions that we would have taken in consolidating the food group in the last several months started to kick in late last year and followed through into this year. The other aspect is that (Warrens) Motors is no longer a drain on our bottom-line; the reorganisation of that company is bearing fruit and it is now a profitable entity. In addition, the expansion that United Insurance has done in the wider Caribbean area plus the new products which they are selling in the segregated insurance field, are also bearing fruit; so it is a combination of things.

“Most, if not all, of the companies within the group are performing better than they did a year ago. We had a better performance at Roberts Manufacturing, the associated companies – namely Almond Resorts – performed better. We have seen an upward trend across the group – so what we started at the end of last year has continued into the first half of this year,” the CEO pointed out.

He added: “I think that the second half performance will largely depend on trying to do what we do better and the hope that the economic performance which we have seen in Barbados over the last six months will continue into the rest of the year . . . . And all things being equal, BS&T by the end of this year will have the best year in its history.”

Having reached this platform, the CEO noted that the challenge now for BS&T was to continue its growth outside of Barbados.

“We are looking at several initiatives but it is too early to identify them. We are looking at initiatives throughout the Caribbean – Jamaica, Antigua, further investment in St Lucia and possibly St Vincent and we are also growing our business in Florida as we speak. Our key strengths will be the people we have (in our employ) and the information technology platform that we are using in our several businesses,” Senator Fields said.