Home' Trinidad and Tobago Guardian : April 3rd 2014 Contents APRIL 2014 • WEEK ONE www.guardian.co.tt BUSINESS GUARDIAN
STOCKS | BG15
Despite some challenges, Goddard
Enterprises Ltd (GEL) delivered
a reasonable performance in
2013. Due to its diversified hold-
ings in many external jurisdic-
tions, GEL is a significant foreign exchange
earner for itself and Barbados.
The company s Trinidad footprint is via
minority interests in Airline Caterers Ltd,
Katerserv Ltd and Tobago Inflite Catering Ltd.
Changes in financial position
Net assets rose from B$561.3 million in 2012
to B$572.8 million as at September 2013. The
company s working capital improved to B$121.7
million from the 2012 level of B$118.7 million.
Current assets increased by 5.4 per cent to
B$372.6 million from B$353.6 million in 2012.
Within this grouping, significant increases
were recorded in cash balances (2013: B$65.3
million; 2012: B$55.6 million) and inventories
(2013: B$166 million; 2012: 159.3 million).
Current liabilities advanced by 6.8 per cent,
or from B$234.9 million in 2012 to B$250.9
million last year. Notable increases were record-
ed in borrowings (2013: B$118.3 million; 2012:
B$105.2 million) and Trade and other payables
(2013: B$115.9 million; 2012: B$110.8 million).
Long-term assets, such as property, plant
and equipment (PPE) fell marginally to B$353.6
million from the previous year s balance of
B$357.8 million. On the other hand, investment
property increased from B$13.5 million in 2012
to B$17 million last year; the primary reason
for this was a transfer from the previous cat-
Largely due to the increased profitability of
its investments in associated companies, their
value increased to B$75 million from B$68.7
million in 2012.
Long-term borrowing declined by B$4.5
million to B$90.6 million from the 2012 level
of B$95.1 million. Total borrowings increased
to B$208.9 million from the 2012 level of
B$200.2 million. Significantly, the US dollar
component declined from B$63.7 million as
at year-end 2012 to B$37 million as at Sep-
tember 2013. Now, debt denominated in both
Barbados and Eastern Caribbean dollar were
the prime beneficiaries of this shift.
This strategy could help mitigate the com-
pany against adverse effects from any possible
devaluation of the Barbados dollar against that
of the United States currency.
Lower year-end balances were also noted
in deferred income tax liabilities (2013: B$3.8
million; 2012: B$4.0 million) and pension plan
liabilities (2013: B$1.7 million; 2012: B$1.9 mil-
Primarily supporting these total net assets
of B$572.8 million was shareholders equity
of B$461.3 million and non-controlling interests
of B$111.5 million.
Income and profit
Total revenues declined by 3.66 per cent to
B$962.9 million from the 2012 figure of B$999
million. On the other hand, cost of sales fell
by a much larger 6.51 per cent to B$605.4
million from B$647.5 million in the 2012 peri-
od.These movements saw GEL deliver an
improved gross profit figure of B$357.3 million
in 2013; this is 1.6 per cent greater than the
B$351.6 million earned in 2012.
Underwriting income, at B$4 million was
almost identical for both periods. However,
selling, marketing and administrative expenses
increased by 3.2 per cent from the 2012 level
of B$303 million to B$312.7 million last year.
The selling and marketing component
declined to B$69.3 million from B$72.9 million
in 2012. On the other hand, weighted down
by higher employment costs and "other
expenses", the administrative component
increased from B$230.1 million in 2012 to
B$243.4 million last year.
These changes saw profit from operations
decline to B$48.7 million from 2012 s B$52.8
Primarily due to a higher hyperinflationary
adjustment of B$4.44 million (2012: B$2.11
million), other net losses increased to B$2.2
million from the 2012 figure of B$1.6 million.
In addition, finance costs rose modestly to
B$12.64 million from 2012 s B$12.39 million
These changes saw income before the inclu-
sion of associated companies results decline
to B$33.8 million from the 2012 level of B$38.8
A stronger performance combined with a
lower level of taxation at the associated com-
panies saw their contribution improve by
almost 25 per cent to B$9.8 million from B$7.9
million in 2012.
Consequently, pre-tax income for 2013
came in at B$43.6 million versus B$46.6 mil-
lion for 2012. The tax take fell from 27 per
cent in 2012 to 22 per cent in 2013. This
allowed GEL to report net income for the year
of B$33.98 million, which was almost identical
to the B$33.91 million it reported for 2012.
However, the amount that was attributable
to shareholders fell from B$24.9 million in
2012 to B$21.1 million last year. This result
translated into diluted EPS of B$0.35 versus
B$0.41 for 2012.
GEL structures its business along four major
segments, import, distribution & marketing,
manufacturing & services, catering and ground
handling and hotel and financial services.
Only associated companies operate under
the hotel and financial services segment; con-
sequently, their sales figures are eliminated
in the consolidation exercise.
The companies operating within the catering
and ground handling segment accounted for
22 per cent of 2013 revenues and contributed
34 per cent to last year s pre-tax income.
The import, distribution and marketing seg-
ment was particularly hard hit by the impo-
sition of VAT in St Lucia, starting in October
2012. For example, Peter & Company expe-
rienced an 18 per cent decline in sales while
sales at Minvielle & Chastanet were 12 per
cent lower than the previous year.
Helping to improve the picture, results at
both Minvielle & Chastanet Insurance Brokers
Ltd and M&C General Insurance Company
Limited were similar to that of 2012.
Meanwhile, Barbados-based companies
Hanschell Inniss Limited and Courtesy Garage
Ltd delivered improved results. In the case of
the former, sales were up by 5 per cent, result-
ing in a better profit. In the case of the latter,
higher vehicle sales resulted in a 35 per cent
improvement in revenue.
Grenadian-based Independent Agencies Ltd
and Jonas Browne and Hubbard (Grenada) Ltd
delivered better results last year. Not surprising,
Jamaican-based Fidelity Motors Limited deliv-
ered lower profits; this was due to currency
devaluation and higher duties on vehicles.
The higher pre-tax profit at the manufac-
turing & services companies can largely be
attributed to improved performances by the
rum companies, which include The West Indies
Rum Distillery Ltd, International Brand Devel-
opers NV (owners of Cockspur and J&R white
rums) and National Rums of Jamaica Ltd.
Useful contributions were also made by
Purity Bakeries, McBride (Caribbean) Ltd and
Caribbean Label Crafts Ltd. Goddards Shipping
and Tours benefited from increased passenger
traffic. Also, Anti-Septic Ltd (t/a Terrific Tiles)
experienced lower sales but reduced its expens-
es sufficiently to allow it to earn higher prof-
its.In the case of HIPAC Ltd, which is engaged
in the meat processing business, despite
higher sales its profit was almost identical
to that of the previous year; the main reason
for this result was the higher cost of raw
Goddard Enterprises Ltd 2013 results
Largely due to the
of its investments in
their value increased
to B$75 million from
B$68.7 million in 2012.
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