Home' Trinidad and Tobago Guardian : April 3rd 2014 Contents BG6 | NEWS
BUSINESS GUARDIAN www.guardian.co.tt APRIL 2014• WEEK ONE
The ANSA McAL Groups's record profits of more
than $1 billion shows its diverse sectors are in a
strong position, said Gerry Brooks, chief operating
officer of the ANSA McAL Group.
"We are in a strong cash position, good capacity. Many of
our investments leave us in a good position strategically and
competitively to be able to replicate earnings on a day by day,
month by month, quarter by quarter basis. We think our busi-
nesses are well positioned in each sector for 2014 and the
future and beyond," he said.
Brooks spoke last Thursday at the results of the 2013 year
end audited financial results at Tatil Building, Maraval Road,
Norman Sabga, chairman of the ANSA McAL Group, gave
indicators of the performance.
"Our revenues are up six per cent, and for the first time
in the history of the group, we have made over $1 billion in
profit and this is a landmark. Our profit before tax increased
by 21 per cent to $1.14 billion and revenues improved to $6.2
billion," he said.
According to the chairman's statement, earnings per share
(EPS) improved by 17 per cent to $4.31 up from $3.67 in the
Aneal Maharaj, group finance director, who was present at
the AGM, drew some examples of why the Group has done
"We have eight sectors with 13 business lines and the financial
sector and Guardian Media Ltd have done remarkably well.
The automotive sector has performed beyond our expectation.
All of the geographical territories have done well. Guyana has
done well. In Barbados, our business has continued to struggle
because of the sluggish economy. However, we have confidence
that the growth will return. So the growth is coming from the
financial sector, the media and the automotive sector. In many
of the distribution companies, there has been growth as well,"
Nicholas Mouttet, president and CEO, ANSA McAL Barbados,
said despite tough economic conditions in Barbados, they have
managed to survive there.
"Barbados is facing difficult times and despite this, over
the last couple years, we have been doing quite a bit of restruc-
turing. We have been reducing our operating costs in Barbados
and our profits are actually up year-on-year and the debt is
reducing. But we do have significant plans ahead and we want
to reinvest there and grow our business. It is a challenging
environment, but we are doing well, relative to the conditions
there," he said.
"In addition in Barbados, we actually closed our flagship
supermarket and we are going to open at a next location. I
do not want to announce the location now. There we will have
greater efficiencies and cost that we have taken out of the
operation. We continue to exist in our existing operations,"
The Group is doing better in St Kitts.
"They have a better results, like in Guyana. But St Kitts is
smaller because of the operation. In Guyana, the land there
could not sustain the planting of sugar cane. The types of soil
was clay soil and could not yield the quantity of sugar and
so we could not proceed with that project," Sabga said.
Brooks said it is "a moment of pride" the Group has recorded
such a significant profit.
"We have made significant investments in the manufacturing
sector. Our $400 million block plant we were able in 2013 to
sell our first set of blocks, commission the plant and bring
the plant into operation. That leaves us in a good position to
service the local market and to service the regional market.
We were also able to integrate the Sissons plant, so that plant
is well positioned to do well in 2014. In 2013, the plant had
its best year ever," he said.
Sabga said the manufacturing sector has acquired a quarry
and is now awaiting a license from the ministry.
"That is going to assist us in our block manufacturing sig-
nificantly. There is also the TK4 operations, which will change
the clay block operations in this country in terms of the quality.
Exports from T&T to Canada could
cost more due to increased taxes as
early as June 2014, the T&T Chamber
of Industry and Commerce (TTCIC)
warned its members in a March 27 e-
"T&T, as part of Caricom, has been
engaged in the negotiation of a trade
and development agreement with
Canada for some time. The negotia-
tions are now at a critical point and
it is possible that the next round to
be held during March 31 to April 4,
2014, in Ottawa Canada will be the
last," the chamber said.
"Caricom's positions in goods, serv-
ices and investment as they now stand
are unlikely to meet with Canadian
acceptance. These positions are also
unlikely to meet the World Trade
Organisation's (WTO) requirements
for substantially all trade in goods and
substantial liberalisation in services
for agreements of this type. It is not
looking like an agreement will be
reached in time," the chamber said.
If these negotiations are not com-
pleted by June 2014, Canada has the
option to take action to eliminate the
preferential treatment which Caricom
member states currently enjoy under
CaribCan, the chamber said.
Twenty-five to 35 per cent of T&T's
trade exports to Canada are duty-free
under CaribCan. The final extension
of this arrangement expired in Decem-
Additionally, T&T will be graduated
out of Canada's general preferential
tariff regime from January 1, 2015, at
which point the full tariff rates will be
applied to our exports to Canada in
the absence of another preferential
trading arrangement, the TTCIC said.
"T&T needs to consider alternative
options in order to preserve our pref-
erential access in the Canadian market.
In this regard, meetings are expected
to continue over the next several
weeks," the chamber said.
Exports to Canada to cost more
ANSA McAL's diversity
is its strength---Sabga
CONTINUED ON PAGE 7
Aneal Maharaj, finance
director, and Norman
Sabga, chairman of the
ANSA McAL Group, at the
presentation of the 2013
year end audited financial
results at Tatil Building,
Maraval Road, St Clair.
PHOTO: MARYANN AUGUSTE
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