Our Identity
The Neal & Massy Group is a conglomerate operating in the majority
of the English speaking countries of the Caribbean. We have been
in business for over 85 years.
We operate across a wide spectrum of industries, offer a range of
quality products and services and represent several international
brands.
We have a long established reputation for integrity and fair play in
our business dealings.
Our Vision
We shall be a flexible, decisive and opportunistic world-class
organization, operating globally, listed on a major stock exchange
with a well recognised brand image.
We shall achieve excellent profitability as an innovative, customer
focused, entrepreneurial Company with empowered CEO’s whose
mission will be to provide significant sustainable growth.
Operating in larger industries in the right economies, we shall be
early into businesses of the future where we will be among the top
in the industries and territories in which we operate.
As a learning and challenging organisation, rewarding excellence,
we shall be the partner of choice for all our major stakeholders.
We shall be a good corporate citizen, responsibly linked to the
communities in which we operate.
1
Our Shareholders
Our Employees
Will receive a total return incorporating capital
We shall provide organisational leadership which
appreciation
by
includes a clear and properly communicated Vision
consistent and continuous growth over and above
for the Group, pride in working for an organization
market leaders.
that is successful, growing and confident in its market
We shall satisfy both strategic investors and portfolio
position.
investors with fundamental and consistent growth,
We shall provide fair play, empathy, integrity
recognising that growth drives the Price/Earnings
and teamwork. A comfortable and functionally safe
multiples, through participation and representation,
environment in which to operate, an organisation
by succession planning, by quality of management,
structure that is flat, flexible and responsive,
through our corporate image and reputation, and by
with clear lines of responsibility that facilitate the
frequent and consistent communications.
empowerment of staff and effective communication.
and
dividend
income,
driven
We shall have adequate performance related
systems
for
recognition,
career
advancement
Our Customers
opportunities and career guidance facilitated through
We shall demonstrate quality in product, service and
training, skills development and coaching.
communication.
We shall provide a career based on challenging
We shall provide convenient locations, quality goods
work with a level of security, strong management
and services, competitive prices, on-going “after”
supported
sales and service care. We shall provide value added
adequate compensation that is industry-competitive
through sound and up-to-date product and technical
and results-based.
through
detailed
planning,
with
an
knowledge, innovative advertising campaigns and
promotional support.
2
We shall provide customer care through relationship
Our Suppliers
management, innovative partnering and involvement
We shall provide a sustainable long-term corporate
in key business processes to ensure desired results
presence,
are achieved.
discipline, market leadership that includes strong
We shall undertake relationship strengthening
share position and growth potential and a capacity
through reciprocity, constantly improving goods and
for strong representation in the marketplace.
services to take account of trends and changes in the
We shall provide clear requirement provisions and
industry.
value-adding contributions, a cultural alignment
We shall provide thought leadership and consistent
through shared values of integrity, loyalty, quality
accessibilty to key employees, thereby maintaining
and safety standards, a commitment through shared
a mutually beneficial and profitable relationship with
vision, and open and timely communications through
our customers.
properly established channels.
financial
security
and
organisational
3
CANADA
UK
Automotive & Industrial Equipment
MIAMI
BAHAMAS
Energy & Industrial Gases
FOOD RetailING
Food/CONSUMER Distribution & Logistics
Tourism/Hospitality
Financial, PROPERTY & OTHER
INFORMATION TECHNOLOGY & COMMUNICATIONS / Other SERVICES
JAMAICA
ANTIGUA
ST LUCIA
BARBADOS
TRINIDAD &
TOBAGO
GUYANA
4
5
6
7
CONTENTS
REPORTS
A Tribute to Bernard Dulal-Whiteway
11
Corporate Information
13
Corporate Social Responsibility:
14
Report on The Neal & Massy Foundation
Corporate Social Responsibility:
18
We Are Here
Chairman’s Report
28
Chief Executive Officer’s Report
32
Directors’ Report
52
Board of Directors
54
Notice of Meeting
62
Management Proxy Circular
64
FINANCIALS
Independent Auditor’s Report
1
Consolidated Balance Sheet
2
Consolidated Income Statement
4
Consolidated Statement of Changes
in Equity
5
Consolidated Cash Flow Statement
6
Notes to the Consolidated
Financial Statements
8
8
9
A TRIBUTE TO BERNARD DULAL-WHITEWAY,
C.A., F.C.C.A
1946 - 2009
10
Bernard Dulal-Whiteway was born on October 22,
Throughout his career, he strongly believed in
1946. He attained his primary school education at
building the human capital of the organization, and
Mon Repos R.C. School and attended Presentation
the community at large. He consistently preached
College, San Fernando, from 1956 – 1964.
and demonstrated the philosophy that ‘by working
He then joined Texaco Inc. as a Trainee Accountant
with people, as a Team, with clear goals and
and was awarded a Texaco Scholarship in 1966
objectives, we can produce outstanding results.’
to study Accountancy in the United Kingdom. He
Guided by this philosophy, he worked tirelessly
completed the examinations of the Association
to build the leadership team of the Neal & Massy
of Chartered Certified Accountants in 1970 and
Group. His work in all spheres reflected the value
returned to Trinidad in 1971 where he was employed
he put on people and on building and sustaining
with Texaco until August 1972.
relationships.
In September 1972 he joined Neal & Massy
He also re-energized Neal & Massy’s community
Holdings as an Accountant, and after holding many
contribution by increasing the funding of the Neal &
senior positions in the Group was appointed Group
Massy Foundation. The Foundation is a charitable
C.E.O. in September 2000.
organization funded by the Neal & Massy Group, in
The majority of his
professional career at Neal & Massy was spent in
existence for the past three decades.
the Automotive Business Unit. He rose to be the
his appointment as Group CEO, Mr. Dulal-Whiteway
CEO of Neal & Massy Industries Limited where he
sought to ensure that Group subsidiaries contribute
led the $15million project to build the state-of-
1% of their pre-tax profits to the Foundation.
the-art Automotive Assembly plant in Santa Rosa,
Mr. Dulal-Whiteway served on many private
Arima – a first of its kind.
The plant employed
sector and public company boards, the main ones
over 1100 employees, many with whom he shared
being Trintoc, Iscott, Betting Levy Board, I.D.C.
special relationships. He remained one of the most
and TIDCO. He was the Chairman of Yara Trinidad
influential sources of knowledge in the local motor
Limited and a Director of Republic Bank Limited,
vehicle industry.
Trinidad Nitrogen Co. Ltd., United Way of Trinidad &
Since his appointment as Group CEO, the Neal
Tobago and Telecommunications Services of Trinidad
& Massy Group grew significantly with annual
& Tobago Limited (TSTT).
revenues increasing from US$400 million to over
He participated in many Government-appointed
US$1.5 billion and with a total employment of over
committees and represented this country as its
10,000 Caribbean citizens. In 2007 and 2008, he
Ambassador General at the Taejon World Fair in
steered the company through one of the largest and
Korea in 1993. In that year, he also led a team of
most prominent transnational acquisitions in the
Government officials and private sector businessmen
region – the acquisition of the Barbados Shipping
on an investment mission to the Far East.
& Trading Company Limited (BS&T).
Mr.
Under his
Dulal-Whiteway
also
Soon after
participated
in
the
leadership, Neal & Massy grew to be one of the
Government’s Vision 2020 exercise as Chairman of
largest, CARICOM, public corporations in terms
the Sub-Committee on Industry and Entrepreneurship
of both revenue and shareholder earnings in the
and he was also the Honorary Consul General for
English-speaking Caribbean.
the Republic of Korea
11
BERNARD DULAL-WHITEWAY
CORPORATE INFORMATION
Mr. Dulal-Whiteway was one of the leading
Directors
businessmen in the Caribbean with a reputation for
A. Lok Jack, Chairman
M.A. Phillip
integrity and fair play in his business dealings. His
E.G. Warner, President & Group CEO
63 Park Street
nearly four decades of exemplary commitment to
Registrar And Transfer Office
Port of Spain
Trinidad & Tobago’s business and social communities
R. Balgobin
has certainly contributed to our nation’s well-being.
R. Bermudez
Auditors
His contribution was recognized nationally when he
E. Boodasingh
PricewaterhouseCoopers
was awarded the 2008 Chaconia Gold Medal, for his
T.M. Boopsingh
11-13 Victoria Avenue
meritorious contribution to Trinidad and Tobago in
R.G. Cave
Port of Spain
the field of business, an honour well-deserved. He
A.C. Fields
was also recognized in 2008 with an ACCA Global
G.A. King
Group Principal Bankers
Achievement Award, which he received in the UK
W.P. Lucie-Smith
Citibank (Trinidad & Tobago) Limited
from the ACCA.
Paula Rajkumarsingh
12 Queen’s Park East
We at the Neal & Massy Group wish to express
B.W. Young
Port of Spain
our profound sorrow over the passing of our leader,
mentor and friend, Bernard Dulal Whiteway on
Secretary
First Caribbean International Bank (Trinidad &
Saturday, December 12, 2009. He was always the
M.A. Phillip
Tobago) Limited
consummate servant-leader who not only served
74 Long Circular Road
Neal & Massy with humility, honour and distinction
Assistant Secretary
Maraval
but one who had the best interests of his country at
C. Mascall
heart. We empathise with his wife, Cheryl and son,
First Citizens Bank Limited
Graeme and we will remember how Bernard lived –
Registered Office
9 Queen’s Park East
with dignity, grace and passion. We will also continue
Port of Spain
to uphold his legacy of exemplary performance and
63 Park Street
embrace the values that he embedded in Neal &
P.O. Box 544
RBTT Bank Limited
Massy.
Port Of Spain
55 Independence Square
Trinidad, West Indies
Port of Spain
Telephone: (868) 625 3426
Facsimile: (868) 627-9061
Republic Bank Limited
E-Mail: [email protected]
11-17 Park Street
Website: www.neal-and-massy.com
Port of Spain
Scotiabank Trinidad & Tobago Limited
Scotia Centre
56-58 Richmond Street
Port of Spain
12
13
Corporate Social Responsibility:
REPORT ON THE NEAL & MASSY FOUNDATION
The Neal & Massy Group is committed not only to
which includes the Pre-Release Stage in Prison and
Another instalment of the Boys to Men programme,
the Foundation also lent substantial financial support
building its business but also to making a tangible
the Post-Release Stage at the rehabilitation centre.
sponsored by the Foundation, took place in the Port
to a number of organisations and causes, including
contribution to society at large. The Neal & Massy
This year, the Neal & Massy Foundation sponsored
of Spain community, with close to 30 participants
the following:
Foundation (NMF) was created 30 years ago as the
building materials, valued at $100,000 toward the
from the East-West Corridor.
• ALTA
main driver for the Group’s involvement in supporting
construction of the centre at San Raphael.
The Foundation also supported two major
• Brasso Venado Government Primary School:
the development of the national community. In this
Another project that originated within the Group
developmental programmes in the Mayaro community.
toward the purchase of materials for the school’s
move Neal & Massy was one of the pioneers, at a
is the ‘Man To Man Programme’, a brother to the
The Boys to Men Programme, with 15 young, male,
infant class
time when Corporate Social Responsibility (CSR) was
‘Boys to Men—Rites of Passage’ programme. ‘Man to
participants, merged with a women’s programme
• Brothers Road Empowerment Group
not generally recognized as a requirement of good
Man’ was launched this year through the impetus of
entitled Successful Women on Toward Self Reliance
• Caribbean Educational Association: toward the
business practice.
Sharon Inglefield, CEO, Nealco Real Estate Limited.
(SWOTS) in Mayaro, with over 60 female participants.
construction of the Lantana Hospitality Training
The stated mission of the Foundation is to
She believed that a development programme for
Sponsored in part by the Neal & Massy Wood Group,
Centre/Conference Centre in Gran Couva
provide financial and other assistance necessary
young men in her community was needed and with
employee participation in the programme was
• Caritas AIDS Ministry
for the development and improvement of society.
the support of the Neal & Massy Foundation, Mrs.
significant and many employees gave of their time to
• Classical Music Development Foundation of T&T
It emphasises four areas as strategic means of
Inglefield hosted the eight-week programme at
build relationships within the Mayaro community.
• Darren Ganga Foundation: toward a three week
bettering our community: education and training of
Nealco’s offices in St Clair.
Two young men from the Mayaro community, who
sports and literacy summer camp in the south
our young people; alleviation of poverty; support for
Approximately 40 young men participated; the
participated in the Boys To Men programme, were
Trinidad
cultural projects and advancement of religion.
group comprised young men from Ms Inglefield’s
compelled to improve their skills sets and enrolled
• Disabled Peoples’ International
The Foundation operates through an independent
community as well as from the wider society,
in a training programme at Metal Industries in
• Exocubs Steel Orchestra
Board, led by its Chairman, Gaston Aguilera, and has
including members of Neal & Massy Trinidad All Stars.
Marabella, South Trinidad. Both individuals receive
• Field Naturalists’ Club
become a major contributor to several NGOs and
The sessions involved discussions on many issues
grants from the Foundation to cover the cost of their
• Fire Association of Trinidad and Tobago
charities across Trinidad and Tobago.
that men struggle with at this stage of their lives,
living expenses for the year while they attend school
• Junior Achievement of Trinidad & Tobago: toward
While the Foundation’s contributions have had a
including how to maintain positive relationships,
in Marabella.
significant impact in the wider community, many
family life and responsibility, but also love of
The merged programme was a major step for all
• Just Because Foundation: toward setting up a
companies across the Group have also made
country and the importance of ‘giving back’ to one’s
participants, under the guidance of facilitator Ian
Computer Zone at the play/library area in the
contributions to the communities in which they
community.
Jeffers, in creating and building a more sustainable and
Oncology/Paediatric Specialty Unit at Eric Williams
operate. Several of these donations across the region
Feature speakers included E. Gervase Warner,
self-sufficient community. The results, particularly in
Medical Sciences Complex
have been highlighted in the first few pages of this
Group CEO, Neal & Massy; Gregory Rousseau,
the SWOTS programme, were inspiring. Participants
• KIND
year’s Annual Report. The following discussion will
Industrial Court Judge; Robert Riley, CEO, bpTT and
were led to continue their education, enrol in literacy
• Lady Hochoy Vocational Centre: toward purchase
report on the major projects undertaken by the
David O’Brien, Group Senior Vice President, Neal &
programmes, seek gainful employment, address
Foundation in 2009.
Massy.
their health concerns and build their confidence to
• Lopinot/La Pastora Spanish Heritage Festival
One of the projects that the Neal & Massy Foundation
The programme gave birth to the ‘Ingars’ Initiative,
find ways of overcoming challenges in their personal
• Lorna Lashley, Save the Children Foundation
has proudly supported is the Reintegration Foundation.
led by a group of the participants, who wanted to
lives. The Foundation has committed over $300,000
• Madonna Wheelers Cycling Club
The Reintegration Foundation is a registered NGO
make a difference in their communities. They hosted
toward continuing the SWOTS programme for the
• Moms for Literacy
that set out to build a rehabilitation centre for ex-
an event to collect canned food for orphanages across
next 18 months, going forward.
• Morne Diable R. C. School
prison inmates of all religious denominations who
the country as well as a clothes-collection drive
The Foundation also maintained its annual
• National Centre for Persons with Disabilities:
are willing to change their lives. The reintegration
for families in need. One of the participants, Brent
commitment to supporting several NGOs. 32 NGOs
of the inmates, to society, begins with the ‘Walk Tall’
Acosta, was recently recognized by his company for
benefitted from grants valued at $378,000 in total.
Programme at Maximum Security Prison in Arouca,
his commitment to community service.
In addition to the disbursement of Annual Grants,
14
an after-school programme
of uniforms for trainees
toward a bursary to cover skills training
• Noble Douglas Dance Company Inc. - 2008 Dance
Season
15
Corporate Social Responsibility:
REPORT ON THE NEAL & MASSY FOUNDATION
• Organs Soccer Clinic
• Rape Crisis Society of Trinidad & Tobago
NEAL & MASSY FOUNDATION FINANCIAL HIGHLIGHTS
2009
2008
$
$
Contributions Received:
3,170,875
5,436,757
Other contributions
50,969
498,135
Interest Income
1,132,408
Total income
4,354,252
6,226,766
Donations
2,553,272
1,489,653
Scolarships
332,000
326,000
Other expenses
18,930
28,320
Total outflow 2,904,202
1,843,973
Surplus
1,450,050
4,382,793
18,927,825
17,484,328
• Rebirth House
• Rotary Club of Maraval: toward the Adopt a Child
Project
• San Fernando West Secondary Local School
790,009
Board
• Scotiabank: Women Against Breast Cancer 2008
• SEPOS Cultural Workshop Inc.
• Signal Hill Alumni Choir
• The Credo Foundation: $10,000.00 towards the
work of the organisation
• The Heroes Foundation
• The Immortelle Children’s Centre for Special
Education
• The Oratory Foundation
• The Players Workshop
• The Salvation Army
• The Tall Man Foundation Arts Programme
Accumulated funds at year end
• Tobago Scout Council
• Trinidad & Tobago Astronomical Society
• Trinidad & Tobago Blind Cricket Association
• Trinidad and Tobago Senior Games
• Tutors Inc., John Romero: $20,000.00 towards
construction of washrooms at school
• United Way Trinidad and Tobago
• UWI, Seismic Research Centre
• Youth Business Trinidad and Tobago
• Youth Training Centre
In addition to the Neal & Massy Foundation’s contribution in Trinidad & Tobago, several
subsidiaries across the region have impacted positively on the communities in which they
operated over the past year.
The following section highlights some of the Corporate Social Responsibility initiatives by
these companies.
16
17
We believe that the successful
growth and development
of young people is rooted
in their education. Education provides one of
the best and most stable avenues
of growth for our youth
Several companies in the Group have made significant
contributions to the education of young people across the
region. Nine years ago, Illuminat (Jamaica) Limited adopted
the Yallahs Basic School, and that relationship continues
today. The company funds teachers’ stipends, provides
Group Health and Life Insurance coverage to teachers,
and annually hosts a Christmas event for the students and
staff. Another Jamaican subsidiary, Gas Products Limited,
has funded scholarships valued at JA$300,000 for the six
students who topped the Grade Six Achievement Test. The
company also committed to further support the students,
once they maintain their high academic standards.
we are Here
to Grow
In Barbados, BS&T has, since 1977, awarded two-year
scholarships to two students of the University of the West
Indies (UWI), as well as providing opportunities for these
young people to gain valuable work experience through
summer attachments.
In Trinidad and Tobago, the Neal & Massy Foundation’s
commitment to education continues through the granting
of academic and technical scholarships to the children of
employees across the Group. Six scholarships were awarded
this year, with a total of 115 such scholarships to employees’
18
children since 1980.
19
we are Here
to Develop
The Neal & Massy Group’s Middle Management and Graduate Training
Programmes have consistently been a success in Trinidad and Tobago and
Creating a
Guyana. The programmes are intended to expose recent graduates to
Groundswell of
the company hired 10 graduates of the programme in Guyana, and 13
loyalty, through
knowledge building,
leadership training
and mentorship,
our Graduate
Training Programme
is surging forward
into a positive future
on-the-job training and mentoring by experienced managers. This year,
in Trinidad and Tobago. The Middle Management Training Programme in
both countries has also benefited many employees in our subsidiaries—25
mid-level managers in Guyana, and 60 in Trinidad during the past year.
Subsidiaries across the region also took part in our Leadership Competency
Programme, focusing on key competencies including building integrity,
good business judgement and people development.
In Barbados, BS&T offered its Management Skills Certificate Programme
for the second year, through the Cave Hill School of Business, with funding
from the Technical and Vocation Education and Training (TVET) Council.
An Executive Diploma in Management will be offered from January 2010.
In 2009, BS&T employees also received training in First Aid and CPR; HIV/
Aids Sensitization (through the Barbados Vocational Training Board and
the HIV/Aids Commission) and Customer Service Training.
This year also, Illuminat (Barbados) and Neal & Massy Guyana received
awards from Quality Consultants Limited, an independent agency that
measures employee satisfaction. The awards recognised improvements in
the companies’ workplace environments.
20
21
The Neal & Massy Foundation is always keen
to support real changes that would positively
impact social problems in Trinidad and Tobago.
Our SWOTS Programme
For a fourth year, the company hosted a
developmental programme called “Boys To Men:
is innovatively designed to
Rites of Passage”, which was designed to prepare
help participants fly free of
their roles as men in society. The programme
a culture of dependency.
young men between the ages of 14 and 21 for
was held in Port of Spain but also, through Neal &
Massy Wood Group, in Mayaro, where its success
By encouraging self discipline
has inspired the company to get more involved in
and self development
of its social issues. The community comprising
we are part of empowering
individuals to soar
in self reliance
working with the community to help solve some
13 villages in the south-east of Trinidad has over
the years been affected by rapid changes amid
the development of an energy-based economy.
The Successful Women On Toward Self Reliance
Programme (SWOTS) was born out of the need
to address serious issues faced by the women of
Mayaro, such as domestic violence, illiteracy and
poverty. The programme has been operating in
the Mayaro community for the past 18 months
during which time participants have undergone
extensive coaching, training and counselling to
allow them to realise their personal and career
goals and become self sufficient.
we are Here
22
to Innovate
23
we are Here
to Achieve
Neal & Massy Executives lent special support to the Neal &
Massy Trinidad All Stars Steel Orchestra by hosting several
training sessions for the band’s leadership to assist them
In supporting our
in building their management capabilities and an improved
indigenous talent,
In Barbados, BS&T sponsored for the fifth year the popular
we are helping to bring
team dynamic.
Crop Over event, ‘Pan Pun The Sand’, at which Neal &
Massy Trinidad All Stars was a headline attraction. Roberts
forth the shining examples
Manufacturing, Super Centre and DaCosta Mannings also
of brilliance in our midst.
Sports has always been a constructive avenue of
As we help those in the
creative arts to achieve
their goals, we are
reminded that the sky
is the limit
sponsored several Crop-Over competitions and events.
expression for young people and with this in mind, Neal
& Massy Guyana donated GUY$2 million to the Guyana
Cricket Board, toward hosting a country-wide cricket
competition. United Insurance Limited continued its 20year plus partnership with the National Sports Council of
Barbados in hosting the Schools Basketball Tournament as
well as the Barbados Chess Federation to promote interest
in the sport of chess in 23 schools.
In Trinidad and Tobago, Neal & Massy Automotive
Limited’s commitment to the sponsorship of the Caledonia
AIA football league has again proved fruitful as the team
continued to perform excellently in local competition.
24
25
It is our responsibility
not just as a corporate citizen
but as a member of the
community to reach out
and support the
less fortunate among us.
Every contribution we make
touches the life of another
High levels of stress-related illnesses are on the rise in the Caribbean
region and across the globe and in Trinidad and Tobago, Neal & Massy
subsidiaries formed a group-wide wellness committee to educate
employees about lifestyle diseases. Employee information sessions
were held to educate employees on a number of topics including
exercise and portion control and medical checks were reintroduced.
Super Centre in Barbados also implemented a similar programme to
assist employees in achieving their daily fitness goals.
we are Here
to Care
The Neal & Massy Foundation donated TT$.5 million dollars toward
the purchase of a state-of-the-art digital mammogram machine for
the Trinidad and Tobago Cancer Society, giving women increased
access to screening for breast cancer.
BS&T formed a similar relationship with the Barbados Heart &
Stroke Foundation and made contributions toward the purchase of
stress testing equipment. Also in Barbados, United Insurance Limited
sponsored a new initiative to assist the Barbados Fire Service in quickly
identifying hydrants and improving their response time to fires.
After Haiti was ravaged by flooding in 2008, group subsidiaries in
Trinidad and Tobago rallied together to raise funds for the construction
of a hospital, L’Hopital Bon Samaritain, in a rural village, to support
26
the country’s inadequate health care system.
27
ChiAIRMAN’s Report
“The Group’s Balance
Sheet continues to be
strong and we are well
The performance of the Neal & Massy Group has
poised to take advantage
conditions which prevailed over the past year The
of new investment
opportunities, and
been commendable despite the difficult economic
economic decline in the United States which gained
momentum in the last financial quarter of 2008,
spread to other major regions of the world, igniting
to benefit from any
regional political tensions, and causing unprecedented
upturn in the economic
financial markets, accompanied by a loss in consumer
conditions of the markets
in which we operate”
aberrations in corporate governance and instability in
and investor confidence, all of which contributed to a
fragile and challenging economic environment.
The Caribbean economies have not escaped
the consequences of the adverse world economic
environment. For example, tourism, the mainstay of
the economies of Barbados, Jamaica and the Eastern
Caribbean, declined sharply, resulting in distressingly
low hotel occupancies during the important winter
season, even after aggressive promotional activity
and heavy discounting. Here in Trinidad and Tobago,
we have not been immune to corporate collapse,
and the overall economy is in a state of contraction.
Still, recovery is visible for the commodity markets
important to this country, and this bodes well for a
relatively stable outlook for the ‘energy engine’ of the
economy. The emphasis continues to be on creating
value and improving efficiency, as these will continue
to be key success factors in our businesses.
The Group adopted a number of financially
prudent, cost-management strategies to cope with
the eroding environment, and we performed credibly
for the Financial Year ended 30th September 2009.
Group third party revenue increased by $722
Million from $7.7 Billion to $8.4 Billion, while profits
attributable to shareholders decreased by 8%
percent from $475 Million to $435 Million. Earnings
per share also declined by 11% percent from $5.10
in 2008 to $4.53 in 2009.
Arthur Lok Jack
Chairman
28
29
ChiAIRMAN’s Report
The Board of Directors has declared a final dividend
shareholders, employees and society in general.
of $1 per share which, when added to the 40 cents
This year, E. Gervase Warner was appointed to the
interim dividend, will make a total dividend of $1.40
position of Acting Group Chief Executive Officer, while
per share, the same as that declared in the previous
Bernard Dulal-Whiteway our Group Chief Executive
year.
Officer, proceeded on personal leave. A detailed
While our operations faced significant challenges,
biography of Gervase Warner follows in the Chief
the strength of our diversified Group provided us
Executive Officer’s Report.
with the resilience to respond, and to compensate
Sadly, at the end of this year we bade farewell to
for setbacks in some of our operations.
Bernard who passed away on December 12, 2009. On
The integration of Barbados Shipping and Trading
behalf of the Neal & Massy Group, I offer condolences
Company Limited (BS&T) into the Group continued
to his family and join in celebrating the outstanding
over the past year, since its acquisition in March
life and career of a leader of extraordinary talent,
2008, and we continued to reorganize our businesses
whose astute business sense was equally matched
around industry lines to add focus to our operations,
by his warmth, sense of fair play and humanity.
while expanding the Group’s leadership structure.
With him at the helm, the Neal & Massy Group became
Our business units are now identified as: Automotive
one of the largest CARICOM public corporations, both
& Industrial Equipment, Energy & Industrial Gases,
in terms of revenue and shareholder earnings.
Food
&
Bernard’s emphasis on building the human capital
Logistics, Tourism/Hospitality, Financial, Property &
of Neal and Massy while making a significant
Other and Information Technology/ Communications/
contribution to the national community has led to
Security Services.
the development of a strong and dynamic leadership
The Group’s Balance Sheet continues to be strong,
team within the Group.
and we are well poised to take advantage of new
In closing, I wish to thank our valued customers
investment opportunities and to benefit from any
and suppliers, employees, shareholders, executives
upturn in the economic conditions of the markets in
and my fellow Directors for their continuing support
which we operate.
and goodwill. On behalf of the board I take this
The importance of good corporate governance as a
opportunity to extend congratulations and best
prerequisite to the preservation of the integrity of the
wishes to Gervase in his new role as President and
Group cannot be overemphasized. In light of recent
CEO of the Neal and Massy Group of companies.
Retailing,
Food/Consumer
Distribution
developments, both home and abroad, our Corporate
Governance and Audit Committees continued to
closely monitor our subsidiaries.
We continued to
strengthen and refine the set of processes, customs,
policies, laws and institutions that guide the way our
Group is directed and run, thereby ensuring that
we continue to operate at the very height of good
corporate governance as well as serve our customers,
30
31
Chief Executive Officer’s Report
• Attended St. Mary’s College and won an
Given the difficult economic conditions that prevailed
Additional Scholarship from Government
over the past year, the performance of the Neal &
of Trinidad and Tobago in 1983
Massy Group has been commendable.
• Graduated
from
Pennsylvania
with
Engineering
Degrees
Engineering
and
The Group
University
of
weathered declines in tourism, energy, construction
Bachelor
of
and automotive sectors throughout the Caribbean
Electrical
and precipitous declines in the foreign exchange rate
in
Computer
Science
Engineering in 1988.
in Jamaica.
The Group faced a number of unfavourable
• Worked with AT&T as a Computer
circumstances in 2009 which are not expected to
Consultant and Systems Engineer from
recur (certainly not simultaneously) in 2010. With the
1988 to 1991.
BS&T acquisition, Neal & Massy acquired a few loss-
• Earned
a
Masters
Administration
(MBA)
in
Business
making operations whose losses were exacerbated
from
Harvard
by the crisis. Significant turnaround efforts were
Business School with Honors in 1993.
undertaken at DaCosta Mannings, Almond Resorts
• Worked at McKinsey & Company from
and Bahamas Supermarkets and these efforts are
1993 to 2004 where he became a partner
already starting to show some results.
in 1999. Consulted to public and private
Despite these challenges the Group did well to
sector clients and developed extensive
increase revenues by 9%, while limiting profit after
experience
Information
tax decline to 4% from $505 million in 2008 to $484
Petroleum
million in 2009. Furthermore, the Group generated
in
Technology,
Financial,
Telecom
and
sectors.
a healthy cash flow of $561 million (as compared to
• Joined Neal & Massy in 2004 as the
negative $71 million in 2008) to end the year with
Executive Chairman for the Energy
$958 million in cash.
Business
Mr.
In the 2008 Annual Report, which noted the then
Warner was appointed to the Neal &
emerging financial crisis, the Group pledged to
Massy Holding Board of Directors. In
focus on protecting and strengthening its balance
2008, the Energy and Industrial Gases
sheet, aggressive management of working capital
Business Units were combined under
and address non-performing assets. As promised,
his leadership. In May 2009, Mr. Warner
management focus in 2009 was directed to setting
was appointed Acting Group CEO and
realistic expectations for the evolving economic
was confirmed as the Group CEO in
decline,
December.
managing working capital, and to tightening risk
Unit.
Later
in
2004,
proactively
reducing
costs,
carefully
• Mr. Warner has been married for 20
management and controls. The Group’s balance sheet
years and has 2 children. He is an
demonstrates the effectiveness of these strategies
active triathlete and participates in
as the Group is well poised to continue to weather
international marathons and triathlons.
the economic downturn and to re-engage its pursuit
of profitable growth.
E. Gervase Warner
President & Group Chief Executive Officer
32
33
Chief Executive Officer’s Report
REVENUE TT$millions
EARNINGS PER SHARE TT$. ¢.
9000
6.00
8,426
7,704
7500
5.00
5.10
4.53
6000
4.15
4.00
5,086
4500
3.37
3.00
4,202
2.80
2.43
3,554
3000
2.00
3,045
2,387
2,459
2,560
2,796
1.37
1500
1.85
1.90
2002
2003
1.51
1.00
2000
2001
2002
2003
2004
2005
2006
2007
2008
2000
2009
PROFIT ATTRIBUTABLE TO SHAREHOLDERS TT$millions
2001
2004
2005
2006
2007
2008
2009
Weighted Average NUMBER of Ordinary Shares in Issue THOUSANDS
500
110,000
475
435
400
105,000
369
300
105,204
103,559
100,000
299
249
200
216
159
165
96,069
95,000
169
93,019
142
100
90,000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
88,822
88,822
88,822
88,822
88,862
88,875
2002
2003
2004
2005
2006
2007
85,000
80,000
2000
34
2001
2008
2009
35
Chief Executive Officer’s Report
The rest of this report provides Triple Bottom Line
2009, versus just seven months in 2008.
Reporting consisting of a Financial Review, including
was acquired on the 1st March 2008, without the
2010, turnaround efforts will continue at Bahamas
balance sheet improved.
an operation review of each line of business, a Health,
contribution from BS&T; the Group’s revenue would
Supermarkets,
Cash
Safety, Security and Environment (HSSE) Review
have declined by $300 million or 6%.
Resorts.
significantly with $1billion in cash generated from
and a Review of our Corporate Social Responsibility
BS&T increased in 2009 with a full year of profit
The impact of the cost reduction and turnaround
operating activities. EBITDA increased by 17% and
initiatives and investments.
consolidated versus only 7 months in 2008.
efforts was seen throughout the year as the Group’s
working capital decreased by $267 million. There
In 2009, the simultaneous impact of the global
operating profit margin increased consistently over
were lower levels of inventories and receivables,
economic crisis with the inheritance of some under-
the final 3 quarters of the year, improving from 6.6%
particularly in the Automotive & Industrial Equipment
performing companies with the BS&T acquisition
in the first quarter to 8.9% in the final quarter of the
Business Unit. Total borrowings of the Group declined
Highlights:
erased the strong performance by many companies.
year.
from $2.4 billion to $2.2 billion, mainly due to the
• Group third party revenue grew by 9% to $8.4
Some of our operations which were negatively
Interest costs increased from $71 million to $108
decline in our working capital borrowings. This
impacted by the downturn are:
million, primarily due to the cost of funds used in
resulted in a reduction in the gearing from 37% to
• Pres-T-Con Ltd and Tracmac Engineering Ltd. were
the acquisition of BS&T, which was reported for 12
27%.
adversely affected by the decline in construction
months in 2009 as opposed to 7 months in 2008.
Our net assets per share increased from $27.64 to
sector projects and activities
The taxation charge for the Group declined to
$28.64. Share capital increased from $512 million to
• Energy Services and Production companies were
$175 million, compared to $201 million in 2008.
$522 million mainly with the issue of 172,000 shares
hurt by oil, gas and petrochemical commodity
This reduction was due to both a slight reduction in
under the stock option plan.
price collapses
the effective rate from 28% to 27% as well as the
Our investing activities utilized $284 million in cash
reduced profitability.
during 2009, compared to $$1.5 billion in 2008. This
The profits attributable to shareholders declined
included the acquisition of additional property plant
• Automotive sales in Trinidad and Barbados
by 8% from $475 million to $435 million, while the
and equipment of $247 million. Dividend payments,
declined as new vehicle sales dropped with
EPS fell by 11% from $5.10 to $4.53. The weighted
including
consumers delaying new vehicle purchases
average shareholding increased 3% in 2009, as
increased from $146 million to $166 million.
the EPS was based on 93 million shares in 2008 as
The Group has been fully compliant with all debt
occupancies and reduced rates affected by the
opposed to 96 million shares in 2009.
covenants as of September 30th, 2009 and has
late opening of hotels under renovation and
Notwithstanding
by the downturn in U.K., U.S. and European
diversification strategy in the last three years has
economies, which contributed to the contraction
proven successful. The Group has demonstrated its
in the tourism sector in Barbados and St. Lucia.
resilience to simultaneous challenges in multiple
FINANCIAL REVIEW
billion
• Profit before tax declined by 6.6% from $706
million in 2008 to $659 million in 2009
• Profit after tax declined by 4% from $505 million
to $484 million
• Weighted average outstanding shares increased
from approximately 93 million to slightly over 96
million shares in 2009, as the shares issued to
BS&T shareholders were included for the full 12
months
• Earnings per share was $4.53 - 11% lower than
in 2008 when EPS was $5.10
• Group debt declined by $259 million to $2,175
million
• Debt to equity ratio improved from 95% in 2008
to 79% in 2009
• Current ratio also improved from 1.17 in 2008 to
1.21 in 2009
• Free
cash
flow
improved
significantly
from
• Jamaican
operations
with
USD
BS&T
PBT from
loans
were
punished by Jamaican currency devaluation
• Almond
Resorts
Group-wide
cost
suffered
reduction
because
initiatives
of
low
helped
efforts were successfully undertaken in 2009.
Warrens
the
Motors
above,
and
the
In
Almond
Group’s
receivables reduced by 8%. The health of the Group’s
generation
payments
across
to
the
group
minority
improved
shareholders,
adequate financial resources to support its anticipated
short- and long-term capital obligations.
territories.
LINE OF BUSINESS OPERATIONAL REVIEW
negative $71 million in 2008 to $561 million in
Energy and Industrial Gases, Information Technology
2009
and Communications, Retail and Distribution/Food
Balance Sheet:
Automotive and Industrial Equipment Business
Manufacturing and Logistics, and Financial Services
The Group’s financial condition and balance sheet
Unit
Profit and Loss:
Business Units; all increased profits over 2008.
remain strong. Total assets remained at $8.3 billion
This Business Unit had a very challenging year as the
The Group revenue increased by 9% while the Profit
Particularly pleasing were results from our Guyana
at September 2009. Disciplined efforts to improve
general decline in economic activity resulted in reduced
Before Tax (PBT) fell by 6.6% and EPS declined by
operations.
working capital management and protect cash
demand for new vehicles and construction equipment,
11% from $5.10 to $4.53. The increase in revenue
In the BS&T acquisition, the Group inherited some
produced handsome results. While revenues grew
particularly in the second half of the financial year. The
reflects the full years’ contribution from BS&T in
under-performing companies and major turnaround
by 9% in 2009, inventory reduced by 17% and
management team quickly responded to the changing
36
37
Chief Executive Officer’s Report
economic conditions and was able to increase relative
Automotive Components Limited performed
throughout the business improved the operating
the production and plant utilization rates that it
market share in most areas, while simultaneously
creditably in the face of increased competition. The
result over the previous year. Higher efficiency and
currently enjoys. New gas in particular, must come
reducing inventory levels and operating costs. The
removal of tariff protection on batteries saw the
productivity in after-sales services will be the focus
on-stream to revive the growth rates the energy
Unit also adjusted its manning levels, mainly in the
influx of a number of new players, resulting in a loss
of the dealership in the coming year.
sector experienced in the past.
areas of contract and temporary employees, and
of market share. However, the company responded
Dacosta
Industrial
It’s 50% co-owned company, Neal & Massy
is now well poised to benefit from any increase in
by improving the efficiency in its manufacturing
Department in Barbados delivered a creditable
Wood Group (NMWG), has broadened its market
general economic activity.
operations, reducing warranty costs consistent with
performance over the past year. In the latter part of
penetration providing maintenance to Methanex
Neal & Massy Automotive Limited increased its
improved product quality and reducing costs in all
the year, the tyre centres at Warrens and Brandons
Trinidad Limited.
market share in a declining market by implementing
areas of operation and thereby achieved significant
were consolidated into the Brandons location.
Strategic Outsourcing Contract Agreement (SOCA)
innovative strategies in conjunction with the major
profit growth despite the reduced market share. ACL
This division will continue to improve its product
and with BG T&T, has met performance expectations
principals. This also resulted in a significant reduction
introduced a number of new initiatives in the last
offering, service and efficiencies in the upcoming
despite the energy market conditions.
in inventory levels and associated carrying costs.
quarter in an effort to regain lost market share and
fiscal year.
proud of its HSSE achievements as it approaches 4
The used car division achieved record sales during
thus far, they are showing promise.
million man hours without a Lost Time Incident.
the second half of the year, through an increase
Tracmac Engineering Limited faced the greatest
in the demand for lower cost vehicles.
Customer
challenge of all the companies in the Automotive &
service continues to be an area of major focus for the
Industrial Equipment Business Unit, as there was a
management team, and although some improvement
sharp decline in construction activity from as early
2009 was a year of adjustment. Following several
mixed fortunes. The products side of the business
was achieved during the financial year, a number of
as the first quarter of the financial year. Tracmac’s
years of booming activity and rising commodity
suffered from reduced expenditure in market capital
new initiatives will be implemented in the coming
management team rose to the challenge and
prices, the Energy and Industrial Gas companies
spares. However, the service side of the business
year.
responded quickly by drastically reducing inventory
were forced to adjust to a new reality. Several
enjoyed growth in the rotating equipment services
City Motors (1986) Limited continued to be
levels and operating costs, while increasing market
new projects were postponed indefinitely, and our
and equipment repair and preventative maintenance
seriously affected by uncompetitive pricing from
share. These efforts resulted in an acceptable return
upstream and downstream clients all adopted heavy
services of 170% and 42% respectively.
the principal and to a lesser extent by some quality
on sales for the financial year under review and the
cost reduction initiatives which put pressure on most
forward, the company is completing the integration
issues with the Peugeot brand.
creation of a platform for a return to growth in the
companies in the Business Unit. Rapid response
of the sales team and the wider integration of NMESL
however continues to remain profitable by prudent
next year.
through cost reduction, receivables management
and NM Insertech (Caribbean) Limited (NMICL) to
management of its operating costs.
Associated Industries Limited (Ainlim) in
and tightening of credit and contracting controls all
increase productivity and efficiency in operations.
Master Serv Limited also had a strong year
Guyana
helped companies in the Unit minimize the impact
NM Insertech (Caribbean) Limited. had a very
mainly due to an increased demand for “after market”
capability, and will continue a strategy of building
of
Opportunities
successful year growing its PBT by 56%. Significant
spare parts as consumers sought to reduce vehicle
excellence into its after-market service for the
arose in maintenance services as many plants
successes were the completion of electrical and
maintenance costs.
machinery and automotive businesses. Its distribution
incurred voluntary and involuntary shutdowns while
instrumentation construction services for two offshore
Tobago Services Limited had an excellent year,
businesses, especially the down trade segment,
commodity prices weakened.
platforms, the continued support for construction of a
exhibiting double-digit growth. TSL benefited from
remain very strong, and recorded another year of
Neal & Massy Energy Limited - Nascent recovery
gas- to-liquids plant and the building of a new ethanol
an increased demand for new vehicles in the first
growth. is apparent for energy commodity prices, which
plant. The company continues to be a significant
half of the year and introduced new product lines, in
Warrens Motors operating in the high-end vehicle
bodes well for the near-term outlook for the energy
supplier of technical resources, valve services and
collaboration with other Group companies.
market in Barbados, recorded a loss for the year.
sector in Trinidad and Tobago. However, the lack
technical equipment to the energy-based industries
Best Auto Limited continues to increase its
Although vehicle sales were weaker than anticipated,
of success in upstream exploration license awards
in Trinidad and Tobago and the region.
market share and profitability, despite some supplier
freezes on new orders significantly reduced inventory,
is a reason for concern. Trinidad and Tobago must
challenges from its principal.
while various operational changes and cost reductions
accelerate exploration activities in order to continue
38
The company
has
strengthened
its
product
support
Mannings
Auto
&
Energy and Industrial Gases Business Unit
The ongoing work, with bpTT’s
NMWG is
Neal & Massy Energy Services Limited
(NMESL),
the
products
and
service
solutions
business, had a disappointing year with some
these
adverse
developments.
Going
39
Chief Executive Officer’s Report
Neal & Massy Energy Resources Limited
the proposed start-up in the last quarter of 2010 of
However, given CPL’s debt burden, these losses wiped
Staffing the stores, particularly in the north and west
(NMERL), the production operation arm of NMEL,
a relocated Air Separation Plant by Air Liquide, our
out profits and resulted in an earnings loss to Neal
of Trinidad continues to be a challenge, and has again
had a very challenging year. Though the production
joint venture partner. In addition, IGL is evaluating
& Massy. While the business continues to generate
negatively impacted customer service. During the
of oil was above target the steep decline in oil prices
its production capacity for high quality food grade
healthy cash flows and services its debt payments,
year the Chaguanas store was expanded and work
eroded these benefits. The company’s effective cost
carbon dioxide.
declining oil prices have reduced the gross profit
on a major refurbishment of our Alyce Glen store
management resulted in a marginally positive net
Trintogas Carbonics Limited experienced a
margins and adversely affected profitability. CPL will
was also undertaken.
profit for the year. NMERL embarked on a number of
marginal increase in revenue however the profit
continue its HSE excellence, cost reduction initiatives
Super Centre Limited had a strong start to
QHSSE initiatives, including the construction of a new
before tax was lower than the previous year because
and product diversification strategies into the new
the financial year compensating for a slow last
Fiscalization Facility at the Moruga West operations
of reduced plant efficiency and reliability.
year.
quarter which signaled a significant slow-down in
and the implementation of systems for achieving full
Caribbean Industrial Gases Limited again
Demerara Oxygen Company Limited (DOCOL)
the Barbados economy. The company met sales
compliance. For the year ahead, the company will be
performed well, achieving its budgeted profits as
in Guyana, commissioned a new LPG filling plant in
and profit expectations and continues to build on
focused on obtaining new exploration and production
well as an excellent safety record.
The plant was
2009 and this contributed to greater efficiency and
developing product selection through direct buying
licenses.
successfully expanded to facilitate higher production
productivity. It also facilitated the closure of the
and adding value to the fresh food offering. Super
levels.
The company is expected to reap the full
secondary plant at New Amsterdam and products are
Centre showed strong support for local agriculture
(NMSCI) a joint venture company with Alaska
benefits of this expansion after a planned overhaul
now bottled in the Georgetown area and transported
and plans to create added value products to further
Supply Chain Integrators and now in its second full
of its main compressor train scheduled for the latter
throughout the country. The company continued to
support the industry going forward.
year of operation, continued to provide procurement
part of the 2009/2010 financial year.
strengthen its HSSE culture and was recertified for
The Knights Pharmacies chain also performed
and warehouse services to the NMWG SOCA project.
NM Petrochemicals Services Limited benefited
ISO 9001: 2000 during the period.
well and strategies are being developed to further
NMSCI also secured two contracts with Atlantic LNG
from a number of planned and unplanned catalyst
Dacosta
to operate their warehouse facilities in Pt Fortin.
change-outs at the methanol and ammonia plants
experienced increased costs in transportation and
Strategies to expand the business, within the
and exceeded budgetary expectations.
in maintenance of cylinders, however the unit
energy-based industries, will continue in the coming
Gas Products Limited (GPL) produced favourable
performed reasonably well. The division will continue
year. NMSCI performed well over the past year, both
operating results during 2009, despite the severe
to strive for increased market share while seeking
financially and in being HSSE compliant, without any
impact of the global economic downturn on the
innovative ways to reduce expenses in the following
Lost Time Incidents.
Jamaican economy which resulted in a very difficult
fiscal year.
Industrial Gases Limited (IGL) enjoyed a
operating environment. A significant devaluation of
to again deliver record improved revenues and
challenging
demand
the Jamaican currency (22.6%) in the first half of the
profits, notwithstanding the weakened economic
for oxygen, acetylene and welding supplies was
year and the associated loss on the US$-denominated
adversely affected by the collapse of the scrap
loan eroded its favourable position and GPL was
metal industry. These gaps were filled by the heavy
unable to meet its financial targets. During the year,
demand for argon, needed for new plant construction
GPL made significant progress in developing a new
activities and for nitrogen from the downstream
business segment and now actively markets LPG for
TDL
process plants for new plant commissioning and
non-cooking applications (NCA) which include water
FoodMaster’s)
major plant shutdowns. The business overcame
40
Neal & Massy Supply Chain Integrators
but
successful
year.
The
Mannings
Texgas
in
Barbados
incorporate pharmacists in overall health care
management.
Food/Consumer Distribution & Logistics
Marketing
Food Group Business Unit
environment.
&
Distribution
(M&D)
was
able
M&D’s Trading Departments–Food &
General Merchandise, Geddes Grant, Pharmaceuticals,
Food Retailing
Agricultural & Industrial Chemicals and Cigarettes–all
delivered commendable performances. The Food &
Retail
(Hilo
LB’s
and
General Merchandise and Geddes Grant departments
challenging
year,
continue to adapt swiftly to changes in consumer
heaters, dishwashers, boilers and standby power
fraught with food price inflation and the tightening
behaviour. In the new financial year the company
several supply challenges facing interruptions in
generators.
economic climate having a negative impact on
will focus on improving operational efficiencies while
raw carbon dioxide, as well as nitrogen and argon
Cool Petroleum Limited (CPL) owned 40% by
consumer
management,
actively pursuing new business opportunities and
supplies. The issue of the long term reliability of
the Energy and Industrial Gases Group, suffered from
however, resulted in a creditable performance for
exploring new business models to respond to the
nitrogen, oxygen and argon will be resolved with
the same devaluation loss problem that inflicted GPL.
the company when compared to the previous year.
changing competitive landscape.
had
behaviour.
Food
Stores,
another
Strict
cost
41
Chief Executive Officer’s Report
Huggins Shipping and Customs Brokerage
into the smaller retailers’ segment along with
Roberts Manufacturing has shown an improved
Limited had a year of flat earnings although
exploring other expense control initiatives. Knights
financial position for the year under review after
customer count grew and service levels continued
Limited (Trading as Rainbow Products) faced
being faced with high input costs in the previous
Almond Resorts Incorporated had a difficult
to be high. Huggins sustained its position as the
competition from international tissue paper product
year.
Reductions in energy costs followed by
year in 2009. The late opening of Casuarina Beach
service provider of choice in the gas and oil sector.
brands however careful management resulted in
commodity prices after the first quarter of the
Club and Almond Beach Club into a depressed world
All units of the companies’ operations performed
satisfactory financial results.
financial year together with a comprehensive review
economic climate resulted in unanticipated losses.
well and are poised to repeat their performance in
Agro Chemicals Incorporated experienced a
of the cost and production of all product lines have
Worldwide, the tourism sector, dependent as it is
2010.
challenging year.
allowed for the improvement in earnings.
The
on discretionary spending, suffered great losses.
Melville Shipping Limited performed credibly.
unavailability of certain products from key suppliers,
removal of the Common External Tariff on soybean
At Almond, revenue and average rates declined as
While its profits declined, the company continues
this company produced satisfactory results which
oil and margarine in some regions of the OECS and
occupancy and average daily rates fell well below
to develop its reputation as a leader in the shipping
were just below those of the previous year.
in Trinidad and Tobago has, however, reduced export
projections. ARI’s marketing efforts yielded better
industry, balancing sound financial performance with
BS&T International Development (Miami),
sales and earnings.
For the year ahead, further
occupancy levels than many other hotels in Barbados
quality service. Melville is well positioned for future
a procurement business for Caribbean retailers,
production efficiencies are anticipated with proposed
but still well short of break-even requirements. The
growth and adheres to the highest levels of HSSE
performed well, and will look for opportunities to
improvements to the soybean oil bottling line, and
ARI management team took steps to operate more
best practices in servicing a demanding customer
expand the number of markets serviced during 2010.
improved production planning on the Margarine
efficiently and implemented cost reduction strategies
base.
The integration of this Unit with Neal & Massy Inc,
lines.
across the organization. ARI also reduced utility costs
Trading & Distribution Incorporated (TDI) in
also in Miami, will be completed this year.
Pinnacle Feeds had a reasonably successful year
through various “green” initiatives.
Guyana recorded flat earnings during the year due
Peronne Manufacturing achieved operational
after starting with high fuel and commodity prices.
ARI is Neal & Massy’s first foray into the tourism
to price competition in key product categories and
profitability over the past year with a more focused
Prices paid in the first quarter of the financial year for
and hospitality sector. ARI and its investments in
excess inventory holdings, resulting in increased
product line of processed and prepared meats.
corn and soybeans were the highest ever recorded
Casuarina Beach Club are prime property locations
working capital costs. While challenges still remain
Notable growth of the gourmet range in the Super
since the company began operating. However,
in
in the consumer foods environment including weak
Centre supermarkets, together with increased sales
reductions in commodity prices during the financial
development projects at the Beach Village location
demand in some areas, the outlook for stabilization
of frozen bulk meat to commercial kitchens and the
year allowed for feed price reductions in February,
and are encouraged by the growing popularity of
in commodity prices appears more favourable. TDI
trade, also bolstered Peronne’s performance.
April and July 2009.
the Casuarina Beach Club. There is an air of prudent
continues to focus on developing its downtrade
2010, Peronne will improve the availability of its
H.D. Hopwood & Company Limited had a
optimism as the world economies gradually climb out
distribution business and on expanding its local
products through its distributor SBI Distribution
successful year, despite a steep devaluation in
of recession and ARI anticipates a better year based
representation of international and regional brands.
Inc.
the Jamaican dollar, and a resulting contraction in
on anticipated increase in the demand for travel.
S.B.I
performed
Booth Steamship experienced a considerable
demand across all areas of business. By rapidly
well during the year under review. A strong first
decline in overall cargo volumes handled at the
adapting to the changing business environment and
half sales performance enabled SBI to exceed
Bridgetown Port and accordingly its results were well
adjusting costs, the company was able to protect and
budgeted expectations. Efficiencies gained through
below target and those of recent years although it
improve its operating margins. During the year, the
its warehouse IT system together with changes to
maintained market share with the Crowley line.
company undertook several initiatives to improve
United Insurance in Barbados was spared the
delivery methods and consolidation of its cold storage
Dacosta Mannings Shipping fared somewhat
employee engagement and they were well received
consequences of hurricanes or any other major
provided cost savings and enhanced profitability.
better with its trans-shipment business through
by the staff. In addition, investments were made in
catastrophic
SBI acquired the Pfizer line during the latter part
Trinidad on the Bernuth line but also fell below
leadership development activities that were aimed at
underwriting result in a very competitive environment.
of the year and has plans to further develop its
expectations. Indications are that low volumes of
building a high performance team.
While its investment earnings were down in the first
pharmaceutical division.
imports into Barbados will continue through much
half of the year, these recovered reasonably by the
of the new financial year due to reduced demand.
close of the year.
Distribution
in
Barbados
Plans for the new fiscal
year include increased focus on greater penetration
42
Despite reduced demand and
In
Tourism / Hospitality
Barbados.
We
recognize
the
potential
for
Financial Services
events,
and
experienced
a
good
The company has placed more
43
Chief Executive Officer’s Report
emphasis on the management of its brand and
$3.8 billion in retail purchases conducted through its
routine and major upgrade maintenance continued
Information Technology & Communications
marketing, which should redound to the benefit of
retail partners. Growth for 2010 is expected to be
to support the market value of its properties. A major
(ITC)/Other Services
the company in the coming years.
The company
achieved through new revenue streams from other
upgrade was completed on one of the properties in
continues to seek ways to diversify and spread its
loyalty processing services, together with further
San Fernando. NPL’s revenue and profit increased
The ITC Business Unit closed the year exceeding its
risks within and outside of the region to mitigate
penetration of its existing markets.
over the previous year.
3-year profit growth target set in 2006. On a year-
against the impact of large losses to the portfolio.
SurePay, a division of Illuminat (Barbados) Limited,
Nealco Real Estate Limited (NREL) continued
on-year basis, 2009 showed growth in profit and
United has retained its ‘A- Excellent’ A.M. Best rating,
had another successful year and has maintained its
to record a satisfactory performance. The company
strong free cash flow and shareholder value added
the highest awarded to Caribbean insurers.
position as the dominant provider of electronic bill
continued to build its client base and has been able
performances.
General Finance Corporation (GFC) maintained
payments based on an increase in transactions and
to steadily increase its market share in consultancy
Illuminat
its revenue and operating profit at 2008 levels,
collection points for a number of utility, financial and
and
NREL’s
showed gains in all of its key measures, significantly
despite the substantial contraction in its major areas
insurance companies, which in turn has enabled a
expertise, experience and integrity in the real estate
improving its customer satisfaction ratings and
of business. The higher cost of funds was offset by
high level of convenience to consumers island-wide.
market augur well for continued growth in a highly
growing its profit. Among the major successes during
reductions in operating expenses, while the level
New services are being developed to be introduction
competitive market.
the year were contracts in transport, health, finance
of loan delinquency continued to match industry
during the new year.
S.P. Musson Son & Company Limited in
and energy. Next year the company will provide new
The company continues to pursue a
Barbados produced enhanced results over budget
services and higher bandwidth at lower costs through
strategy of widening both its customer and depositor
and the previous year through sales of house lots
its upgraded broadband network; as well as bring an
primarily in its development at Friendly Hall, St. Lucy.
expanded range of HP, Avaya, Education and CISCO
Although rental increases have not been possible
solutions to the market.
standards.
base.
Properties/Construction Services
Neal & Massy Remittance Services Limited
property
management
services.
(Trinidad
&
Tobago)
Limited
It will also accelerate its
was adversely impacted by the shrinkage in the
Pres-T-Con Group (Pres-T-Con, RABCO Construction
because of reduced retail activity, high occupancy
efforts to penetrate Latin America for its retail and
personal remittance industry worldwide. Transaction
and Pres-T-Con Equipment) was affected by the
levels in its properties and those under management
Oracle solutions.
volumes were down with a resulting decrease in
global recession, coupled with the Government’s
including Sunset Crest have supported earnings. The
Illuminat Barbados and Eastern Caribbean
foreign currency available for trading.
downward adjustment to its Budget. Faced with a
company recently began a new land development at
strengthened its market position with significant
NM Services Limited (NMSL) in Guyana realized
major decline in construction projects, Pres-T-Con
Gemswick, St. Philip and also continues to grow its
achievements
improved earnings from its equipment financing
Group made the necessary adjustments to maintain
general real estate services under the Musson Realty
government sectors through the implementation
business, Customs and shipping and that, together
its leading position as the preferred manufacturer of
brand.
of new technologies in tandem with a number of
with stable performance for the remittance business,
pre-stressed concrete products and deep foundations
The Pierhead Project has been rekindled since
its international partners including HP, NCR, Avaya,
enabled the company to achieve targets. The focus
installation contractor in Trinidad and Tobago and
Neal & Massy’s acquisition of BS&T. In order to
Oracle and Motorola. Additionally, it enjoyed market
will now be on increasing its market share in the
throughout the Caribbean. Over the past year, Pres-
identify options for a new Neal & Massy/BS&T led
share gains with its Xerox imaging and printing
shipping business.
T-Con Group successfully undertook a new venture
initiative, an advisor has been retained to interact
solutions
Magna met targeted expectations in all but one
into
Petrotrin’s
with various consulting parties as well as the Barbados
surrounding islands. In the coming year it will launch
territory and continued its growth in the region
Refinery utilizing Continuous Flight Auger Cast piles.
Government to prepare a high-level plan. Pending
the Internet-based version of its highly successful
despite a slow down in consumer spending in 2009.
Pres-T-Con Group’s plans for the year ahead include
the result of the consultations and the development
SurePay bill payment service.
The company achieved growth by expanding its
penetration of the Guyana market, improved product
of the concept plan, decisions on the next step,
Illuminat Jamaica’s performance was adversely
overall loyalty processing services to some of the
offerings and enhanced efficiencies.
whether to work independently or jointly with the
affected by a challenging economic environment.
larger clients, particularly in Trinidad. Jamaica also
Nealco Properties Limited (NPL) placed major
Barbados Government, will be taken.
Many private and public sector projects were delayed
added 51 new locations during the year.
Magna
emphasis on its cost savings and customer service
and
has grown to 1.35 million customers across the
strategies throughout the year with the objective of
devaluations further reducing profits. The company,
region. 2009 saw over 15 million transactions and
retaining an occupancy rate above 95%. Focus on
however, deepened its penetration of the key
44
alternative
deep
foundation
at
in
portfolio
Jamaica
the
financial,
within
experienced
education
Antigua,
Tortola
significant
and
and
currency
45
Chief Executive Officer’s Report
education sector with a significant win for PCs and
share of market for IT and office equipment services;
Dacosta Mannings Retail Division in Barbados
Recovery was further compounded by the global
multimedia equipment for 178 secondary schools.
and the provision of ATM’s and related services
experienced lower than anticipated sales in lumber,
recession which has taken its toll on the tourism
It also reduced its dependence on foreign resources
to the financial sector had a positive impact on
furniture, appliances and hardware for the fiscal year
industry in Bahamas. Consumers are far more price
through local capability building, and successfully
performance. The company will seek to strengthen
as consumer spending contracted bringing about
sensitive than ever before. Neal & Massy has acquired
launched new offerings which will increase the flow
customer relationship management and dealership
losses after the 2009 Christmas sales. The division
majority voting rights in the last round of capital
of recurring revenues in the coming years.
relations during the new year.
exited the lumber business which was located
injection and is currently implementing a full-fledged
all
NM Security Solutions Incorporated (NMSS)
at Fontabelle and the Speighstown store ceased
turnaround programme that focuses on restoring
financial targets and received an outstanding service
in Guyana did not meet expectations as growth
operations in July. The warehouses for hardware and
customer confidence, realigning product prices to
rating from its customers. In 2009 the company
opportunities identified for cash services, and a
furniture and appliances were consolidated into one
market, motivating employees, improving the supply
embarked on a programme of regional expansion,
redirection of guarding services into more profitable
location at Brandons and the Tile and Bath store at
chain, increasing controls with strong financial and
introducing Diebold in Barbados and Pitney Bowes in
segments, were slow in gaining momentum. With
Fontabelle was consolidated into the main store. At
operations reporting and cost-reduction.
Guyana. In Trinidad and Tobago RICOH continues to
the infrastructure in place and the initiatives taken
the end of the financial year a new store was opened
Banks Holdings Limited (BHL) in Barbados
be the market leader in office equipment, while the
during the year, it is anticipated that the company
in Cave Shepherd on Broad Street in Bridgetown.
recorded reduced profits of its Group for the financial
Toshiba brand significantly exceeded its targets. The
will return strong growth in the future.
This new store has exceeded expectations to-date
year ended 31st August 2009. Most operations in
furniture and office interiors division almost doubled
BCB Communications the in-house advertising
although overall sales are still depressed across the
Barbados, and its Guyana associate, commendably
its profits and the software division experienced
agency for BS&T and Banks Holdings, performed
retail sector as the Barbadian economy has grown
matched or exceeded their 2008 results in the face
notable success with wins in both the financial and
below budget because of reduced advertising spent by
tighter in the second half of 2009.
of the recessionary environment.
office equipment areas.
its clients but did a good job of containing expenses.
continues to position itself in this recessionary period
Belize associate incurred a loss as it was unable to
Three Sixty Communications, our long-distance
Seawell Air Services, operating at Grantley
to be as efficient as possible through cost saving
overcome the dual challenges of adverse weather
communications provider, delivered strong growth in
Adams International Airport in Barbados, endured
measures, and has returned to profit in the months
patterns
the key enterprise services revenue stream. Overall
a particularly challenging year.
leading up to Christmas in the new financial year.
concentrate commodity pricing during the year. There
however, the year was a challenging one and a flat
aviation industry was hard hit by the contraction in
has been a subsequent recovery in citrus concentrate
profit performance was delivered. The company
international economic activity in 2009 and almost
pricing, now almost double the 2008/2009 low, and
expects to further penetrate the enterprise services
all air carriers suffered significant losses.
market, launch services for the SME segment and
suffered from loss of revenue from clients who
in a well regulated environment deliver profitable
stopped flying to Barbados, a major client who
Neal & Massy Wood Group, Caribbean Industrial
Gablewoods Supermart Limited through its
inbound services.
switched to the competition and lower prices to
Gases, NMAP Services and Cool Petroleum have been
operating company in St. Lucia, Consolidated Foods
Nealco Datalink Limited’s call centre revenue
retain other customers. As a result, Seawell closed
discussed under the Energy and Industrial Gases
Ltd, has performed well and grown through the
stream performed on target, an encouraging sign
the year with a loss. Staff reductions were inevitable
Business Unit.
period under review. This can be attributed to a new
as the company pursues the imperative of moving
and were discussed with the representative union.
(BSL)
“warehouse’ store” offering a range of large-pack food
up the outsourcing value chain. Further efforts to
Seawell has also embarked on initiatives to more
narrowed its losses from 2008 by half in 2009. This
items and domestic hardware and a fall in electricity
penetrate the emerging local market (government
effectively compete in the new realities of the airline
was achieved by reducing costs and closing one
rates. The St Lucia economy, however, is becoming
and financial) as well as international markets for
industry by examining its systems and procedures
unprofitable store. Efforts to improve Gross Profit
more challenging and management are focussed
this service will be its focus in the coming year.
and conducting staff training to reduce operating
margins were stymied by the protracted timeframe
on finding measures to ensure the sustainability of
CCS
costs and improve service levels.
With the onset
that was required to negotiate refinancing of debt
profits.
introduced electronic security offerings in its product
of the winter tourism season, Seawell has returned
at the holding company to facilitate an injection of
Group 4 Securicor (G4S) operations in Trinidad
line-up and obtained three major tenders for the
to profitability but the difficulties for commercial
additional funds required to support direct buying
and Tobago continue to record strong results across
service during the year. The company retained its
aviation are expected to continue during 2010.
and better credit terms and prices with suppliers.
its core competencies despite the contraction of
Pereira & Company Limited
46
Guyana
Limited
(CCS)
exceeded
successfully
The commercial
Seawell
The division
Associated Companies
and
significant
lows
However, BHL’s
in
orange
juice
indications are that the price increase should hold for
the foreseeable future.
Bahamas
Supermarkets
Limited
47
Chief Executive Officer’s Report
the economy and the shrinking labour market.
substitutes, and lower overheads to deliver a strong
was introduced at the beginning of the financial year.
The strategic decision, to position the company as
performance.
The matrix was used to evaluate and report on the
a partner that provides outsourced services within
Medina Foods Incorporated of Montreal, Canada
sustained efforts for each of the individual companies
At Neal & Massy we recognize and nurture the
sectors where security and safety risks are a strategic
provides consultancy services and food safety audit
across the group and compare progress being made
symbiotic relationship between our Corporate Social
threat, has served the business well.
services to food processors and producers for the
among the Group’s companies. Monthly reviews
Responsibility and our companies’ human capital
G4S operations in Barbados had a difficult year, as
development and implementation of food safety
were conducted during the HSSE meetings with all
development and financial performance. We realize
a quality provider for security services, operating in
assurance programmes. A key area of its business
of the practitioners, and at quarterly meetings which
that our investments and efforts to contribute to
contracting economies. Management has responded
is the audit of airline caterers worldwide on behalf
included CEO’s and Directors.
educational, social, cultural, sporting and community
and 2010 should see much improved results.
of many major airlines in a strategic alliance with
In consultation with Group companies that had
initiatives in the countries in which we operate
Signia Financial Group in Barbados performed
IATA. While still a small company, Medina’s results
already adopted comprehensive HSSE Management
redound to our benefit. Healthier, better educated
very well. The lending department continues to be
have improved in recent years although profits were
systems, an overall HSSE Management System
and more fulfilled citizens are better employees,
the main driver of profits with marked year-on-year
reduced this last year as a result of lower airline
framework was developed for the Neal & Massy Group
customers and business associates. The more
increases in profitability and loan growth. However,
activity.
of companies and introduced at the beginning of the
impact we can have towards the enrichment and
with the decline in the stock market, the profitability
year. Each company within the Group is required to
development of the societies in which we operate, is
of the equity trading department has fallen. Foreign
adapt and adopt the HSE Management System for
the safer and more prosperous those societies will be
CORPORATE SOCIAL RESPONSIBILITY
exchange trading provided a good contribution, but
HEALTH, SAFETY SECURITY AND THE
its operations. The required training and awareness
for our business operations.
this was also negatively impacted by the economic
ENVIRONMENT (HSSE)
was conducted for all of the HSSE practitioners.
Neal & Massy’s initiatives and investments in the
Companies have begun implementing the system
interests of its Corporate Social Responsibility have
environment and reduced foreign exchange in the
market.
Interest rates have declined, reducing
This financial year saw a continued emphasis on the
and are continuing to improve in preparation for
been outlined earlier in this report and are not
funding costs and positively impacting interest
deepening of the HSSE processes and procedures
audits during this financial year.
repeated in this section. Please review the Corporate
income.
embarked upon previously.
Continued
in place to manage delinquencies and given the
Specific to the Group reporting requirements
with the Occupational Safety and Health (OSH)
continued contraction of the market, the company is
a concerted effort was made regarding monthly
Act are complied with have resulted in satisfactory
approaching 2010 with prudence.
submission of the HSSE Leading and Lagging
compliance levels across the Group over the past
Caribbean Airport Services Limited (CAS)
Indicators. The compiled data was analysed in
financial year. The audit function within the HSSE
which provides ground handling services at Antigua’s
order to determine the overall performance of the
Management system will be used as the assurance
international airport is a joint venture between LIAT
companies within the Group. It must be noted that
tool for continued monitoring and improvement in
The late Bernard Dulal-Whiteway was an inspirational
(51%) and Seawell Air Services (49%). During this
there has been improvement in all cases with the
this regard.
leader. His flame burned brightly through his
year, CAS lifted its image by improving customer service
most significant being a reduction in the number
A number of visits were conducted at the regional
leadership example and the mentoring that he
through staff training and fine tuning its standard
Days Away from Work Cases (DAFWC). Root
locations in Guyana, Barbados and Jamaica and these
provided to Neal & Massy executives and others. He
operating procedures. CAS improved its operating
Cause analyses were conducted within the incident
locations appraised of their observed performance
leaves behind him a legacy of exceptional performance
performance
investigation process and Lessons Learnt discussed
levels. These visits will continue in order to gauge
and important values that are treasured at Neal &
handling fees. CAS was also awarded the contract to
and shared during monthly meetings.
and assist with improved levels of performance and to
Massy. He has inspired many of us to emulate his
handle two additional carriers, one from October 2009
From the Leading and Lagging Indicators reported
enhance Group and other reporting and compliance
warmth, humility and fairness that balanced his
and one other during the 2009/10 winter.
on a monthly basis, an overall HSSE performance
obligations.
astute business sense. Bernard passed the torch
Tower Hill Merchants PLC, based in the
matrix which plots companies’ composite performance
to a group of executives whom he recruited and
UK, benefited from a combination of stable food
against HSSE Lagging Indicators (outcomes) versus
developed individually to continue the great work of
ingredient
performance against HSSE Leading Indicators (inputs)
the Neal & Massy group of companies in providing
48
The company put additional measures
and
prices,
achieved
new
increases
business
in
with
certain
product
emphasis
on
ensuring
compliance
Social Responsibility section at the front of this Annual
Report to review our CSR contributions in 2009.
CLOSING REMARKS
49
healthy returns to shareholders, creating a safe and
strengthen the senior leadership team. He created
for his mentorship and guidance. His legacy is etched
fulfilling work environment for its employees, and
two new job titles: Executive Vice President and
in our hearts and our minds. He leaves behind a
contributing to the development of the societies in
Senior Vice President. Consistent with the desire
strong and great company with a track-record for
which we operate.
to leverage the broader executive team in group
performance, caring that extends to its employees,
As a result of my appointment as President and
leadership roles, we are proud to announce that
customers and communities in which it operates and
Group CEO, Linford Carrabon who chaired the
Paula Rajkumarsingh, having been appointed to the
a thirst for excellence. We have inherited a company
Automotive and Industrial Equipment Business Unit
Neal & Massy Holdings Board of Directors in 2009
that is a Force for Good in our home countries and
last year, will replace me as the Executive Chairman
joined Anthony King and Earl Boodasingh as an
for our region.
of the Energy and Industrial Gases Business Unit.
Executive Vice President of the Group. In addition,
I thank and congratulate the entire Neal & Massy
As the previous CEO of Industrial Gases Limited
other Executive Chairmen of Business Units, Linford
team, including our recently acquired Barbadian
as well as previous Chief of Staff for Neal & Massy
Carrabon, Frere Delmas, Keith Thomas were also
colleagues
Wood Group’s SOCA contract with bpTT, Linford
appointed as Senior Vice Presidents in addition to
response to the economic downturn. I appreciate
is no stranger to the Energy and Industrial Gases
Christian Maingot, Judith Bowen and David O’Brien
their dedication and commitment demonstrated in
leadership team and client base.
who are already Senior Vice Presidents.
work ethic and the Group’s results.
David O’Brien who chaired the Property/Construction
In 2010, the Group will continue its focus on the
I also thank our Chairman, Arthur Lok Jack and
Services and Financial Services Business Units will
5 Management Priorities which were identified for
my fellow Board members for their counsel and
replace Linford Carrabon as the Executive Chairman
running all companies during the current economic
support through a very difficult year. I am honoured
of the Automotive and Industrial Equipment Business
down-turn: being realistic about what can or is likely
by the confidence they have bestowed upon me and
Unit. The Pres-T-Con Group of companies will move
to happen, disciplined working capital management,
will continue to seek their valuable counsel in the
to the Automotive and Industrial Equipment Business
cost reduction and asset utilization improvement,
future.
Unit and continue to be chaired by Mr. O’Brien.
tight controls and attention to risk management, and
To our prized customers and business associates,
Anthony King, CEO of BS&T will continue his role
thinking outside the box will continue to be guiding
thank you for your continued support and partnership.
as the Executive Vice President for Neal & Massy in
priorities for running the operations of the Group’s
We are continuously learning and continuously
Barbados and will take on the additional responsibility
companies. In addition, the Group is well poised to
improving, so we look forward to your continued
of
continue its growth objectives. Select opportunities
support and feedback.
Financial Services, Property and Other Business unit.
for inorganic growth will be considered in 2010.
To our shareholders, I appreciate the faith and
In addition to recombining the property and financial
The Group has some assets and investments
confidence that you demonstrate by investing in our
services companies into a single Business Unit, other
which are not earning returns commensurate with
Group. We continue to operate with your interest at
companies such as the Magna companies, DaCosta
capital employed. The Group’s portfolio of assets and
the forefront of our concerns. We look forward to
Manning, Roberts Manufacturing and the airport
investments is being reviewed and divestment of
serving you for many years to come.
services companies have also been added to this
some non-strategic assets will be pursued in 2010.
Unit.
Along with its portfolio review, the Group will also
The Information Technology and Communications
revisit its long-term corporate strategy and develop
Business Unit will retain the traditional ITC related
Business Unit strategies for implementation over the
companies as well as security services related
next 5 years.
subsidiaries and associates.
In closing, I wish to express my condolences to the
Last year, Bernard Dulal-Whiteway introduced new
family, friends and associates who survive Bernard
job titles and new job responsibilities in his quest to
Dulal-Whiteway. I will forever be grateful to Bernard
50
Executive
Chairman
for
the
re-intergrated
for
their
hard
work
and
proactive
51
DIRECTOR’S REPORT
DIRECTOR’s INTEREST
The Directors have pleasure in submitting their Report and the Audited Financial Statements for the financial
The interests of the Directors holding office at the end of the financial year in the Ordinary Shares of the
year ended 30th September 2009
Company were as follows:
30/9/09
30/9/09
Principal activities
The main activity is that of a Holding Company.
Beneficial
R. Balgobin
6,500
“
R. Bermudez
27,849
“
T.M. Boopsingh
4,000
“
E. Boodasingh
146,438
“
R.G. Cave
Nil
“
B.S. Dulal-Whiteway
736,641
“
A. C. Fields
1,000
“
G.A. King
75,000
“
A. Lok Jack
500,981
“
W.P. Lucie-Smith
17,897
“
Dividends
Paula Rajkumarsingh
115,995
“
The Directors declared a final dividend of $1.00 per share, making a total dividend of $1.40 per share
E.G. Warner
41,257
“
for the financial year. The final dividend will be paid on 18th January 2010 to shareholders whose names
B.W. Young
Nil
“
Financial results for the year
$000’s
Profit attributable to shareholders
435,412
Dividends paid and declared
Interim paid
(39,863)
Final declared
(99,786)
(139,649)
Profit retained for the year
295,763
Other movements on revenue reserves
(90,647)
Balance brought forward
1,857,806
Retained earnings at end of year
2,062,922
Ordinary Shares
Non-Beneficial
appear on the Register of members of the Company at the close of business on 30th December 2009
There has been no change in the Directors’ interests occurring between the end of the Company’s financial
Directors
year and one month prior to the date of the notice convening the Annual Meeting.
Pursuant to paragraph 4.6.1 of By-Law No. 1 of the Company Dr. Rolph Balgobin, Mr. R. Geoffrey Cave,
Mr. G. Anthony King, Mr. Arthur Lok Jack, Mr. William Lucie-Smith and Mr. E. Gervase Warner retire from
There were no beneficial interests attached to any shares registered in the names of the Directors in the
the Board by rotation and being eligible offer themselves for re-election until the close of the third Annual
Company’s subsidiary companies, such shares being held by the Directors as nominees of the Company
Meeting following this appointment.
or its subsidiaries.
Pursuant to paragraph 4.6.1 of By-Law No. 1 of the Company Mr. Brian Young retires from the Board by
rotation and pursuant to paragraph 4.8 of By-Law No. 1 of the Company, Mr. Brian Young having attained
the age of seventy one years and being eligible offer himself for re-election until the close of the next
Annual Meeting following this appointment.
At no time during or at the end of the financial year has any Director had any material interests in any
contract or arrangement in relation to the business of the Company or any of its subsidiaries.
Substantial Interests
Directors’ and Substantial Interests
These should be read as part of this report.
Auditors
The National Insurance Board
30/9/09
15/11/09
Ordinary Shares
17,958,658
18,059,199
The Auditors, PricewaterhouseCoopers, retire and being eligible offer themselves for re-appointment.
By Order Of The Board
A substantial interest means one-tenth or more of the issued share capital of the Company.
Michael A. Phillip
Company Secretary
15 December 2009
52
53
BOARD OF DIRECTORS
Arthur Lok Jack
Mr. Warner also holds BSE Degrees in Electrical
In 1998, Mr. Lok Jack was elected to the Board of
Engineering and Computer Science Engineering from
Neal & Massy Holdings Limited and was appointed
the University of Pennsylvania and has over 20 years
Chairman in June 2004. He is also the Executive
of international experience working in the USA, Latin
Chairman of the Associated Brands Group of
America and the Caribbean.
Companies and Chairman of Guardian Holdings
Limited and Caribbean Airlines Limited. He serves on
Dr. Rolph Balgobin
the Boards of many other Caribbean companies. In
Dr. Balgobin is the Chairman of Quicksilver
2001, he was voted Master Entrepreneur of the year
Convenience Ltd. and The Competitiveness Company. and in 2002, he was awarded an Honorary Doctorate
He previously held the posts of Executive Director
Chairman
of Laws and recognized as a Caribbean Luminary by
at the Arthur Lok Jack Graduate School of Business
Trinidad and Tobago Citizen
the University of the West Indies. Mr. Lok Jack is
and Project Director in the Global Business Services
also a recipient of the prestigious Chaconia Medal
Unit of Proctor & Gamble for the Europe, Middle East
(Gold) for his contribution to business development
and Africa region.
in Trinidad and Tobago. In 2004 he was inducted
He holds a Doctor of Business Administration (DBA)
into Queen’s Royal College (Alma Mater) Hall of
degree from the Manchester Business School at the
Honour and in November 2009, he was inducted
University of Manchester, as well as an EMBA and a
into the Trinidad & Tobago Chamber of Industry and
B.Sc. in Industrial Management from UWI. He also
Commerce’s Business Hall of Fame.
holds an ACCA Diploma in Corporate Governance and
Arthur Lok Jack
a Master of Studies from the Judge Business School
at the University of Cambridge.
E. Gervase Warner
Dr. Balgobin currently serves as Chairman of the
Mr. Warner is the President and Group CEO of the
Point Lisas Industrial Port Development Company
E. Gervase Warner
Neal & Massy Group of Companies. Prior to and
(PLIPDECO), Deputy Chairman of Electrical Industries
Trinidad and Tobago Citizen
throughout his appointment in 2009, he also served
Limited, and is a Director of the Telecommunications
as the Executive Chairman of the Group’s Energy &
Services of Trinidad & Tobago (TSTT), the Brother
Industrial Gases Business Unit.
Jerome Foundation and Youth Business Trinidad and
Mr. Warner holds an MBA from the Harvard Graduate
Tobago. President & Group Chief Executive Officer
School of Business Administration and prior to joining
the Neal & Massy Group, he was a partner with the
international management consulting firm, McKinsey
& Company Inc., where he last led the firm’s client
services in the Caribbean region. He has extensive
experience in the financial, ITC and petroleum sectors
and currently serves on the Trinidad & Tobago Board
of Citigroup Merchant Bank Limited, Caribbean
54
Airlines and the Trinidad and Tobago Chamber of
Dr. Rolph Balgobin
Commerce.
Trinidad and Tobago Citizen
55
BOARD OF DIRECTORS
Robert Bermudez
Trevor Boopsingh
Mr. Bermudez is the Chairman of the Bermudez Group
Mr. Boopsingh has had a distinguished career in the
of Companies. He is also associated with several
Petroleum Sector. He is, at present, the Chairman
other corporate bodies in and out of Trinidad and
of Caribbean Energy Specialists Limited and the
Tobago.
Eastern Caribbean Pipeline Company. Mr. Boopsingh
is the recipient of many accolades, including the
title of Distinguished Member, SPE International
Earl Boodasingh
in 2000; Distinguished Lecturer, SPE International
Earl Boodasingh is the Chairman of Neal & Massy’s
in 1977 and the Distinguished Graduate Award at
Food/Consumer Distribution & Logistics Regional
the 50th Anniversary of the University of the West
Business Unit. Indies. In 2002 he was also awarded the Chaconia
Mr. Boodasingh joined the Neal & Massy Group in
Medal (Gold). Mr. Boopsingh, who is also a MSc.
1981 and has held many senior positions across the
Graduate in Petroleum Reservoir Engineering from
Group throughout his tenure. His career within the
the University of London, is the author of the book
group began at Neal & Massy Industries Limited as
“Oil, Gas and Development”.
Robert Bermudez
Trinidad & Tobago Citizen
a Cost and Management Accountant. He went on
to hold the positions of Financial Comptroller and
Financial Director for a number of companies and
major divisions, including the Marketing & Distribution
Division and the Hi-Lo Food Stores Division. He later
served as CEO for both divisions, consecutively. In
2003 he was appointed as the Transition Manger for
H.D Hopwood & Company Limited in Jamaica.
In 2005, Mr. Boodasingh was appointed as the
Earl Boodasingh
Trinidad and Tobago Citizen
Executive Chairman of the Neal & Massy Automotive
& Industrial Equipment Business Unit. In 2007,
he assumed the position of Executive Chairman of
the Group’s Retail, Distribution & Logistics Business
Unit. Trevor Boopsingh
Trinidad and Tobago Citizen
56
57
BOARD OF DIRECTORS
Geoffrey Cave
Barbados Dairy Industries Ltd. and Cable & Wireless
Geoffrey Cave is the Chairman of the Board of
(Barbados) Ltd. He was recently appointed Chairman
Directors of Cave Shepherd & Co. Limited – a
of the Caribbean broadcasting Corporation. He is
Barbados-based corporation with subsidiary and
Barbados’ non-resident Ambassador to the Peoples
associate companies located across the region.
Republic of China. He also serves as an Independent
Mr. Cave joined Cave Shepherd, which was a
Senator in the Barbados Parliament.
family-run business at the time, in 1963 and was later
appointed as the company’s Managing Director then
elected as Chairman. He has enjoyed a distinguished
G. Anthony King
career in business, serving as Director and Chairman
G. Anthony King has been the Group Chief Executive
of several leading private and public organizations in
Officer of the Barbados Shipping & Trading Company
Barbados.
Limited (BS&T) since October 1, 2004.
In 2000, Mr. Cave was awarded the Barbados
Mr. King is also a Director of other publicly traded
Centennial Honour and the Caribbean Master
companies in Barbados such as Banks Holdings
Entrepreneur Award the following year.
In the
Limited, Almond Resorts Inc. and the Barbados
Queen’s New Years’ Honour’s List in 2003, he was
National Bank. He is also the Chairman of the
appointed Commander of the Most Excellent Order of
Tourism Development Corporation in Barbados
the British Empire and in October 2007 the University
and a Director of the Barbados Private Sector
of the West Indies conferred on him an Honorary
Association.
Degree of Doctor of Laws (LLD). More recently, in
His business career spans almost 35 years, 23 of
October 2009, he was appointed an Independent
which were spent with the Neal & Massy Group. Prior
Senator by the Governor General of Barbados. to his departure to take up the BS&T appointment,
he led Neal & Massy’s Eastern Caribbean Group of
Companies. SIR ALLAN FIELDS
He has been associated with various private sector
Sir Allan Fields joined the Neal & Massy board in
organisations, as a Past President of the Barbados
1998 to 2008, and was reappointed in 2009. He was
Chamber of Commerce & Industry, as well as a
the Chairman of the Barbados Shipping & Trading
Director of the Caribbean Association of Industry and
Co. Ltd. (BS&T). Formally trained in Mechanical
Commerce (CAIC). He continues to participate in
Engineering, he has served as Managing Director of
the community as a Trustee of the Barbados Youth
Lucas Industries Barbados’s operations, BS&T and
Business Trust.
Geoffrey Cave
Barbadian Citizen
Sir Allan Fields
Barbadian Citizen
Banks (Barbados) Breweries Ltd.
Sir Allan serves on many Boards in Barbados,
including the Barbados National Insurance
Corporation, First Caribbean International Bank, the
Barbados Employers Confederation and the YMCA.
He is also Past President of the Private Sector
G. Anthony King
Organization and Chairman of Banks Holdings Limited,
Barbadian Citizen
58
59
BOARD OF DIRECTORS
William Lucie-Smith
Brian Young
Mr. Lucie-Smith is a Chartered Accountant
Mr. Young is the Chairman of Neal & Massy Group
by profession and a former Senior Partner of
(Jamaica) Limited, Cool Petroleum Limited, an
PricewaterhouseCoopers ( Trinidad ) where he headed
associate company of Neal & Massy Holdings Limited
its Corporate Finance and Recoveries practice. Mr.
and Chairman of the Audit Committee of Neal &
Lucie-Smith has accumulated extensive experience
Massy Holdings Limited. in mergers and acquisitions, taxation and valuations
A former Senior Partner of PricewaterhouseCoopers
and holds an MA degree from Oxford University in
(Jamaica), Mr. Young has held his position on the Board
Philosophy, Politics and Economics. He currently
of Neal & Massy Holdings Limited for the past 14 years. serves as a non-Executive Director on a number of
He is highly experienced in the areas of corporate
William Lucie-Smith
Boards including Republic Bank and Sagicor Financial
finance, mergers and acquisitions, insolvency and
Trinidad and Tobago Citizen
Corporation.
management information systems, with 45 years of
management consultancy experience. Mr. Young is currently on the Boards of Trinidad
PAULA RAJKUMARSINGH
Cement Limited, Caribbean Cement Company
Paula Rajkumarsingh is a Corporate Financial
Limited, RBTT Jamaica Limited, Bermudez Holdings
Executive, with over 10 years of experience at a
Limited, Trade Winds Jamaica Limited and has served
senior management level, and the Group’s Chief
on many Jamaican Government teams.
Financial Officer. She is currently a Director on the
Parent Board of First Caribbean International Bank in
Barbados and First Caribbean International Bank in
Trinidad & Tobago. She is also a Director of a private
Equity Fund (DevCap) and served on the board of
Sugar Manufacturing Company for four years.
Paula Rajkumarsingh
Trinidad and Tobago Citizen
Brian Young
Jamaica Citizen
60
61
NOTICE OF MEETING
TO ALL SHAREHOLDERS
SCHEDULE A
Text of Proposed Resolution to be considered at the Annual Meeting of Shareholders of Neal & Massy
Holdings Limited (the “Company”) to be held on Friday 29th January, 2010.
NOTICE IS HEREBY GIVEN that the Eighty-Sixth Annual Meeting of Shareholders of Neal & Massy Holdings
Limited (“the Company”) will be held at the Belmont Salon, Hilton Trinidad, Lady Young Road, Port of Spain,
Ordinary Resolution
Trinidad on Friday 29th January 2010 at 10:00 a.m. for the following purposes:
Resolved:1To receive and consider the Report of the Directors and the Audited Financial Statements for the
financial year ended 30th September, 2009 together with the Report of the Auditors thereon, and to
1
note the final dividend.
“THAT, in accordance with the requirements of paragraph 4.6.1 of By-Law No. 1 of the Company, Dr.
Rolph Balgobin, Mr. R. Geoffrey Cave, Mr. G. Anthony King, Mr. Arthur Lok Jack, Mr. William Lucie-Smith
and Mr. E. Gervase Warner each be and each of them is hereby elected a Director of the Company to
2To elect Directors.
hold office until the close of the third Annual Meeting of the Shareholders of the Company following
this election”
3
To appoint Auditors and authorise the Directors to fix their remuneration and expenses for the ensuing
year.
2
“THAT, in accordance with the requirements of paragraph 4.6.1 and 4.8 of By-Law No. 1 of the
Company, Mr. Brian Young who attained the age of seventy one years be and is hereby elected a
The texts of the proposed resolutions in relation to item 2 are annexed hereto as Schedule A.
Director of the Company to hold office until the close of the next Annual Meeting of the Shareholders
of the Company following this election”
By Order Of The Board
Michael A. Phillip
Company Secretary
15 December 2009
NOTES:
1No service contracts were entered into between the Company and any of its Directors.
2
A member of the Company entitled to attend and vote at the above meeting is entitled to appoint a proxy
to attend and vote in his or her stead. Such proxy need not also be a member of the Company.
3
Attached is a Proxy Form which must be completed, signed and then deposited with the Secretary of
the Company not less than 48 hours before the time fixed for holding the Meeting.
62
63
MANAGEMENT PROXY CIRCULAR
Republic of Trinidad and Tobago
The Companies Act, Ch. 81:01
[Section 144]
1
Name of CompanyNEAL & MASSY HOLDINGS LIMITED
Company No. 2
Particulars of Meeting
Eighty-Sixth Annual Meeting of Shareholders of the above named Company to be held at the Belmont
N-20(C).
Salon, Hilton Trinidad, Lady Young Road, Port of Spain, Trinidad at 10:00 a.m. on Friday 29th January,
2010.
3
Solicitation
It is intended to vote the Proxy solicited hereby (unless the shareholder directs otherwise) in favour
of all resolutions specified therein.
4
Any Director's statement submitted pursuant to Section 76(2)
No statement has been received from any Director pursuant to Section 76(2) of the Companies Act,
Ch. 81:01.
5
Any Auditor's statement submitted pursuant to Section 171(1)
No statement has been received from the Auditors of the Company pursuant to Section 171(1) of the
Companies Act, Ch. 81:01.
6
Any Shareholder's proposal submitted pursuant to Sections 116(a) and 117(2)
No proposal has been received from any Shareholder pursuant to Sections 116(a) and 117(2) of the
Companies Act, Ch. 81:01.
DateName and TitleSignature
64
15th December 2009
Michael A. Phillip
Company Secretary