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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.
2 3
Our sharehOlders Will receive a total return incorporating capital
appreciation and dividend income, driven by
consistent and continuous growth over and above
market leaders.
We shall satisfy both strategic investors and portfolio
investors with fundamental and consistent growth,
recognising that growth drives the Price/earnings
multiples, through participation and representation,
by succession planning, by quality of management,
through our corporate image and reputation, and by
frequent and consistent communications.
Our CustOMers We shall demonstrate quality in product, service and
communication.
We shall provide convenient locations, quality goods
and services, competitive prices, on-going “after”
sales and service care. We shall provide value added
through sound and up-to-date product and technical
knowledge, innovative advertising campaigns and
promotional support.
We shall provide customer care through relationship
management, innovative partnering and involvement
in key business processes to ensure desired results
are achieved.
We shall undertake relationship strengthening
through reciprocity, constantly improving goods and
services to take account of trends and changes in the
industry.
We shall provide thought leadership and consistent
accessibilty to key employees, thereby maintaining
a mutually beneficial and profitable relationship with
our customers.
Our eMPlOyees We shall provide organisational leadership which
includes a clear and properly communicated Vision
for the Group, pride in working for an organization
that is successful, growing and confident in its market
position.
We shall provide fair play, empathy, integrity
and teamwork. a comfortable and functionally safe
environment in which to operate, an organisation
structure that is flat, flexible and responsive,
with clear lines of responsibility that facilitate the
empowerment of staff and effective communication.
We shall have adequate performance related
systems for recognition, career advancement
opportunities and career guidance facilitated through
training, skills development and coaching.
We shall provide a career based on challenging
work with a level of security, strong management
supported through detailed planning, with an
adequate compensation that is industry-competitive
and results-based.
Our suPPlIers We shall provide a sustainable long-term corporate
presence, financial security and organisational
discipline, market leadership that includes strong
share position and growth potential and a capacity
for strong representation in the marketplace.
We shall provide clear requirement provisions and
value-adding contributions, a cultural alignment
through shared values of integrity, loyalty, quality
and safety standards, a commitment through shared
vision, and open and timely communications through
properly established channels.
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MIAMI
CANADA UK
BARBADOS
TRINIDAD & TOBAGO
JAMAICA
GUYANA
AUTOMOTIve & INDUSTRIAl eqUIpMeNT
eNeRGY & INDUSTRIAl GASeS
FOOD ReTAIlING
FOOD/CONSUMeR DISTRIBUTION & lOGISTICS
TOURISM/HOSpITAlITY
FINANCIAl, pROpeRTY & OTHeR
INFORMATION TeCHNOlOGY & COMMUNICATIONS / OTHeR SeRvICeS
ANTIGUA
ST lUCIA
BAHAMAS
8 9
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
10 11
Bernard Dulal-Whiteway was born on October 22,
1946. he attained his primary school education at
Mon repos r.C. school and attended Presentation
College, san Fernando, from 1956 – 1964.
He then joined Texaco Inc. as a Trainee Accountant
and was awarded a Texaco Scholarship in 1966
to study accountancy in the united Kingdom. he
completed the examinations of the Association
of Chartered Certified Accountants in 1970 and
returned to trinidad in 1971 where he was employed
with Texaco until August 1972.
In september 1972 he joined neal & Massy
holdings as an accountant, and after holding many
senior positions in the Group was appointed Group
C.e.O. in september 2000. the majority of his
professional career at neal & Massy was spent in
the automotive Business unit. he rose to be the
CeO of neal & Massy Industries limited where he
led the $15million project to build the state-of-
the-art Automotive Assembly plant in Santa Rosa,
Arima – a first of its kind. The plant employed
over 1100 employees, many with whom he shared
special relationships. he remained one of the most
influential sources of knowledge in the local motor
vehicle industry.
since his appointment as Group CeO, the neal
& Massy Group grew significantly with annual
revenues increasing from us$400 million to over
us$1.5 billion and with a total employment of over
10,000 Caribbean citizens. In 2007 and 2008, he
steered the company through one of the largest and
most prominent transnational acquisitions in the
region – the acquisition of the Barbados shipping
& trading Company limited (Bs&t). under his
leadership, neal & Massy grew to be one of the
largest, CarICOM, public corporations in terms
of both revenue and shareholder earnings in the
English-speaking Caribbean.
A TRIBUTE TO BERNARD DULAL-WHITEWAY, C.A., F.C.C.A 1946 - 2009
throughout his career, he strongly believed in
building the human capital of the organization, and
the community at large. he consistently preached
and demonstrated the philosophy that ‘by working
with people, as a team, with clear goals and
objectives, we can produce outstanding results.’
Guided by this philosophy, he worked tirelessly
to build the leadership team of the neal & Massy
Group. His work in all spheres reflected the value
he put on people and on building and sustaining
relationships.
He also re-energized Neal & Massy’s community
contribution by increasing the funding of the neal &
Massy Foundation. the Foundation is a charitable
organization funded by the neal & Massy Group, in
existence for the past three decades. Soon after
his appointment as Group CEO, Mr. Dulal-Whiteway
sought to ensure that Group subsidiaries contribute
1% of their pre-tax profits to the Foundation.
Mr. Dulal-Whiteway served on many private
sector and public company boards, the main ones
being trintoc, Iscott, Betting levy Board, I.d.C.
and tIdCO. he was the Chairman of yara trinidad
limited and a director of republic Bank limited,
trinidad nitrogen Co. ltd., united Way of trinidad &
tobago and telecommunications services of trinidad
& tobago limited (tstt).
He participated in many Government-appointed
committees and represented this country as its
ambassador General at the taejon World Fair in
Korea in 1993. In that year, he also led a team of
Government officials and private sector businessmen
on an investment mission to the Far east.
Mr. Dulal-Whiteway also participated in the
Government’s Vision 2020 exercise as Chairman of
the Sub-Committee on Industry and Entrepreneurship
and he was also the honorary Consul General for
the republic of Korea
12 13
Mr. Dulal-Whiteway was one of the leading
businessmen in the Caribbean with a reputation for
integrity and fair play in his business dealings. his
nearly four decades of exemplary commitment to
trinidad & tobago’s business and social communities
has certainly contributed to our nation’s well-being.
his contribution was recognized nationally when he
was awarded the 2008 Chaconia Gold Medal, for his
meritorious contribution to trinidad and tobago in
the field of business, an honour well-deserved. He
was also recognized in 2008 with an aCCa Global
achievement award, which he received in the uK
from the aCCa.
We at the Neal & Massy Group wish to express
our profound sorrow over the passing of our leader,
mentor and friend, Bernard dulal Whiteway on
saturday, december 12, 2009. he was always the
consummate servant-leader who not only served
neal & Massy with humility, honour and distinction
but one who had the best interests of his country at
heart. We empathise with his wife, Cheryl and son,
Graeme and we will remember how Bernard lived –
with dignity, grace and passion. We will also continue
to uphold his legacy of exemplary performance and
embrace the values that he embedded in neal &
Massy.
BERNARD DULAL-WHITEWAY
DIRECTORS
a. lok Jack, Chairman
e.G. Warner, President & Group CEO
r. Balgobin
r. Bermudez
e. Boodasingh
t.M. Boopsingh
r.G. Cave
a.C. Fields
G.a. King
W.P. Lucie-Smith
Paula rajkumarsingh
B.W. young
SECRETARy
M.a. Phillip
ASSISTANT SECRETARy
C. Mascall
REgISTERED OFFICE
63 Park street
P.O. Box 544
Port Of spain
trinidad, West Indies
telephone: (868) 625 3426
Facsimile: (868) 627-9061
E-Mail: [email protected]
Website: www.neal-and-massy.com
COrPOrate InFOrMatIOn
REgISTRAR AND TRANSFER OFFICE
M.a. Phillip
63 Park street
Port of spain
AuDITORS
PricewaterhouseCoopers
11-13 Victoria Avenue
Port of spain
gROuP PRINCIPAL BANkERS
Citibank (trinidad & tobago) limited
12 Queen’s Park east
Port of spain
First Caribbean International Bank (trinidad &
tobago) limited
74 long Circular road
Maraval
First Citizens Bank limited
9 Queen’s Park east
Port of spain
rBtt Bank limited
55 Independence square
Port of spain
republic Bank limited
11-17 Park Street
Port of spain
scotiabank trinidad & tobago limited
scotia Centre
56-58 Richmond Street
Port of spain
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COrPOrate sOCIal resPOnsIBIlIty: rePOrt On the neal & Massy FOundatIOn
the neal & Massy Group is committed not only to
building its business but also to making a tangible
contribution to society at large. the neal & Massy
Foundation (nMF) was created 30 years ago as the
main driver for the Group’s involvement in supporting
the development of the national community. In this
move neal & Massy was one of the pioneers, at a
time when Corporate social responsibility (Csr) was
not generally recognized as a requirement of good
business practice.
the stated mission of the Foundation is to
provide financial and other assistance necessary
for the development and improvement of society.
It emphasises four areas as strategic means of
bettering our community: education and training of
our young people; alleviation of poverty; support for
cultural projects and advancement of religion.
the Foundation operates through an independent
Board, led by its Chairman, Gaston aguilera, and has
become a major contributor to several nGOs and
charities across trinidad and tobago.
While the Foundation’s contributions have had a
significant impact in the wider community, many
companies across the Group have also made
contributions to the communities in which they
operate. several of these donations across the region
have been highlighted in the first few pages of this
year’s annual report. the following discussion will
report on the major projects undertaken by the
Foundation in 2009.
One of the projects that the neal & Massy Foundation
has proudly supported is the reintegration Foundation.
the reintegration Foundation is a registered nGO
that set out to build a rehabilitation centre for ex-
prison inmates of all religious denominations who
are willing to change their lives. the reintegration
of the inmates, to society, begins with the ‘Walk tall’
Programme at Maximum Security Prison in Arouca,
which includes the Pre-Release Stage in Prison and
the Post-Release Stage at the rehabilitation centre.
this year, the neal & Massy Foundation sponsored
building materials, valued at $100,000 toward the
construction of the centre at san raphael.
another project that originated within the Group
is the ‘Man to Man Programme’, a brother to the
‘Boys to Men—rites of Passage’ programme. ‘Man to
Man’ was launched this year through the impetus of
Sharon Inglefield, CEO, Nealco Real Estate Limited.
she believed that a development programme for
young men in her community was needed and with
the support of the neal & Massy Foundation, Mrs.
Inglefield hosted the eight-week programme at
Nealco’s offices in St Clair.
Approximately 40 young men participated; the
group comprised young men from Ms Inglefield’s
community as well as from the wider society,
including members of neal & Massy trinidad all stars.
the sessions involved discussions on many issues
that men struggle with at this stage of their lives,
including how to maintain positive relationships,
family life and responsibility, but also love of
country and the importance of ‘giving back’ to one’s
community.
Feature speakers included e. Gervase Warner,
Group CeO, neal & Massy; Gregory rousseau,
Industrial Court Judge; robert riley, CeO, bptt and
david O’Brien, Group senior Vice President, neal &
Massy.
the programme gave birth to the ‘Ingars’ Initiative,
led by a group of the participants, who wanted to
make a difference in their communities. they hosted
an event to collect canned food for orphanages across
the country as well as a clothes-collection drive
for families in need. One of the participants, Brent
acosta, was recently recognized by his company for
his commitment to community service.
another instalment of the Boys to Men programme,
sponsored by the Foundation, took place in the Port
of spain community, with close to 30 participants
from the East-West Corridor.
the Foundation also supported two major
developmental programmes in the Mayaro community.
the Boys to Men Programme, with 15 young, male,
participants, merged with a women’s programme
entitled successful Women on toward self reliance
(sWOts) in Mayaro, with over 60 female participants.
sponsored in part by the neal & Massy Wood Group,
employee participation in the programme was
significant and many employees gave of their time to
build relationships within the Mayaro community.
two young men from the Mayaro community, who
participated in the Boys to Men programme, were
compelled to improve their skills sets and enrolled
in a training programme at Metal Industries in
Marabella, south trinidad. Both individuals receive
grants from the Foundation to cover the cost of their
living expenses for the year while they attend school
in Marabella.
the merged programme was a major step for all
participants, under the guidance of facilitator Ian
Jeffers, in creating and building a more sustainable and
self-sufficient community. The results, particularly in
the sWOts programme, were inspiring. Participants
were led to continue their education, enrol in literacy
programmes, seek gainful employment, address
their health concerns and build their confidence to
find ways of overcoming challenges in their personal
lives. the Foundation has committed over $300,000
toward continuing the sWOts programme for the
next 18 months, going forward.
the Foundation also maintained its annual
commitment to supporting several nGOs. 32 nGOs
benefitted from grants valued at $378,000 in total.
In addition to the disbursement of annual Grants,
the Foundation also lent substantial financial support
to a number of organisations and causes, including
the following:
• ALTA
• Brasso Venado Government Primary School:
toward the purchase of materials for the school’s
infant class
• Brothers Road Empowerment Group
• Caribbean Educational Association: toward the
construction of the lantana hospitality training
Centre/Conference Centre in Gran Couva
• Caritas AIDS Ministry
• Classical Music Development Foundation of T&T
• Darren Ganga Foundation: toward a three week
sports and literacy summer camp in the south
trinidad
• Disabled Peoples’ International
• Exocubs Steel Orchestra
• Field Naturalists’ Club
• Fire Association of Trinidad and Tobago
• Junior Achievement of Trinidad & Tobago: toward
an after-school programme
• Just Because Foundation: toward setting up a
Computer Zone at the play/library area in the
Oncology/Paediatric specialty unit at eric Williams
Medical Sciences Complex
• KIND
• Lady Hochoy Vocational Centre: toward purchase
of uniforms for trainees
• Lopinot/La Pastora Spanish Heritage Festival
• Lorna Lashley, Save the Children Foundation
• Madonna Wheelers Cycling Club
• Moms for Literacy
• Morne Diable R. C. School
• National Centre for Persons with Disabilities:
toward a bursary to cover skills training
• Noble Douglas Dance Company Inc. - 2008 Dance
season
16 17
• Organs Soccer Clinic
• Rape Crisis Society of Trinidad & Tobago
• Rebirth House
• Rotary Club of Maraval: toward the Adopt a Child
Project
• San Fernando West Secondary Local School
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
• 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
COrPOrate sOCIal resPOnsIBIlIty: rePOrt On the neal & Massy FOundatIOn
neal & Massy FOundatIOn FInanCIal hIGhlIGhts
2009 2008
$ $
Contributions received: 3,170,875 5,436,757
Other contributions 50,969 498,135
Interest Income 1,132,408 790,009
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
Accumulated funds at year end 18,927,825 17,484,328
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.
18 19
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.
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’
children since 1980.
we are Here to Grow
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
20 21
the neal & Massy Group’s Middle Management and Graduate training
Programmes have consistently been a success in trinidad and tobago and
Guyana. The programmes are intended to expose recent graduates to
on-the-job training and mentoring by experienced managers. This year,
the company hired 10 graduates of the programme in Guyana, and 13
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.
we are Here to Develop
Creating a
Groundswell of
loyalty, through
knowledge building,
leadership training
and mentorship,
our Graduate
training Programme
is surging forward
into a positive future
22 23
we are Here to Innovate
the neal & Massy Foundation is always keen
to support real changes that would positively
impact social problems in trinidad and tobago.
For a fourth year, the company hosted a
developmental programme called “Boys To Men:
Rites of Passage”, which was designed to prepare
young men between the ages of 14 and 21 for
their roles as men in society. the programme
was held in Port of spain but also, through neal &
Massy Wood Group, in Mayaro, where its success
has inspired the company to get more involved in
working with the community to help solve some
of its social issues. the community comprising
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.
Our sWOts Programme
is innovatively designed to
help participants fly free of
a culture of dependency.
By encouraging self discipline
and self development
we are part of empowering
individuals to soar
in self reliance
24 25
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 building their management capabilities and an improved
team dynamic.
In Barbados, BS&T sponsored for the fifth year the popular
Crop Over event, ‘Pan Pun the sand’, at which neal &
Massy trinidad all stars was a headline attraction. roberts
Manufacturing, super Centre and daCosta Mannings also
sponsored several Crop-Over competitions and events.
sports has always been a constructive avenue of
expression for young people and with this in mind, Neal
& Massy Guyana donated Guy$2 million to the Guyana
Cricket Board, toward hosting a country-wide cricket
competition. United Insurance Limited continued its 20-
year plus partnership with the national sports Council of
Barbados in hosting the schools Basketball tournament as
well as the Barbados Chess Federation to promote interest
in the sport of chess in 23 schools.
In trinidad and tobago, neal & Massy automotive
limited’s commitment to the sponsorship of the Caledonia
aIa football league has again proved fruitful as the team
continued to perform excellently in local competition.
we are Here to Achieve
In supporting our
indigenous talent,
we are helping to bring
forth the shining examples
of brilliance in our midst.
as we help those in the
creative arts to achieve
their goals, we are
reminded that the sky
is the limit
26 27
we are Here to Care
High levels of stress-related illnesses are on the rise in the Caribbean
region and across the globe and in trinidad and tobago, neal & Massy
subsidiaries formed a group-wide wellness committee to educate
employees about lifestyle diseases. employee information sessions
were held to educate employees on a number of topics including
exercise and portion control and medical checks were reintroduced.
super Centre in Barbados also implemented a similar programme to
assist employees in achieving their daily fitness goals.
the neal & Massy Foundation donated tt$.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
the country’s inadequate health care system.
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
28 29
ChIaIrMan’s rePOrt
arthur lok JackChairman
“The Group’s Balance
sheet continues to be
strong and we are well
poised to take advantage
of new investment
opportunities, and
to benefit from any
upturn in the economic
conditions of the markets
in which we operate”
the performance of the neal & Massy Group has
been commendable despite the difficult economic
conditions which prevailed over the past year the
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
regional political tensions, and causing unprecedented
aberrations in corporate governance and instability in
financial markets, accompanied by a loss in consumer
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.
30 31
ChIaIrMan’s rePOrt
The Board of Directors has declared a final dividend
of $1 per share which, when added to the 40 cents
interim dividend, will make a total dividend of $1.40
per share, the same as that declared in the previous
year.
While our operations faced significant challenges,
the strength of our diversified Group provided us
with the resilience to respond, and to compensate
for setbacks in some of our operations.
the integration of Barbados shipping and trading
Company limited (Bs&t) into the Group continued
over the past year, since its acquisition in March
2008, and we continued to reorganize our businesses
around industry lines to add focus to our operations,
while expanding the Group’s leadership structure.
Our business units are now identified as: Automotive
& Industrial equipment, energy & Industrial Gases,
Food retailing, Food/Consumer distribution &
logistics, tourism/hospitality, Financial, Property &
Other and Information technology/ Communications/
security services.
the Group’s Balance sheet continues to be strong,
and we are well poised to take advantage of new
investment opportunities and to benefit from any
upturn in the economic conditions of the markets in
which we operate.
the importance of good corporate governance as a
prerequisite to the preservation of the integrity of the
Group cannot be overemphasized. In light of recent
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,
shareholders, employees and society in general.
this year, e. Gervase Warner was appointed to the
position of Acting Group Chief Executive Officer, while
Bernard Dulal-Whiteway our Group Chief Executive
Officer, proceeded on personal leave. A detailed
biography of Gervase Warner follows in the Chief
Executive Officer’s Report.
sadly, at the end of this year we bade farewell to
Bernard who passed away on december 12, 2009. On
behalf of the neal & Massy Group, I offer condolences
to his family and join in celebrating the outstanding
life and career of a leader of extraordinary talent,
whose astute business sense was equally matched
by his warmth, sense of fair play and humanity.
With him at the helm, the neal & Massy Group became
one of the largest CarICOM public corporations, both
in terms of revenue and shareholder earnings.
Bernard’s emphasis on building the human capital
of Neal and Massy while making a significant
contribution to the national community has led to
the development of a strong and dynamic leadership
team within the Group.
In closing, I wish to thank our valued customers
and suppliers, employees, shareholders, executives
and my fellow directors for their continuing support
and goodwill. On behalf of the board I take this
opportunity to extend congratulations and best
wishes to Gervase in his new role as President and
CeO of the neal and Massy Group of companies.
32 33
ChIeF exeCutIVe OFFICer’s rePOrt
e. Gervase WarnerPresident & Group Chief Executive Officer
Given the difficult economic conditions that prevailed
over the past year, the performance of the neal &
Massy Group has been commendable. the Group
weathered declines in tourism, energy, construction
and automotive sectors throughout the Caribbean
and precipitous declines in the foreign exchange rate
in Jamaica.
the Group faced a number of unfavourable
circumstances in 2009 which are not expected to
recur (certainly not simultaneously) in 2010. With the
BS&T acquisition, Neal & Massy acquired a few loss-
making operations whose losses were exacerbated
by the crisis. Significant turnaround efforts were
undertaken at daCosta Mannings, almond resorts
and Bahamas supermarkets and these efforts are
already starting to show some results.
despite these challenges the Group did well to
increase revenues by 9%, while limiting profit after
tax decline to 4% from $505 million in 2008 to $484
million in 2009. Furthermore, the Group generated
a healthy cash flow of $561 million (as compared to
negative $71 million in 2008) to end the year with
$958 million in cash.
In the 2008 annual report, which noted the then
emerging financial crisis, the Group pledged to
focus on protecting and strengthening its balance
sheet, aggressive management of working capital
and address non-performing assets. As promised,
management focus in 2009 was directed to setting
realistic expectations for the evolving economic
decline, proactively reducing costs, carefully
managing working capital, and to tightening risk
management and controls. the Group’s balance sheet
demonstrates the effectiveness of these strategies
as the Group is well poised to continue to weather
the economic downturn and to re-engage its pursuit
of profitable growth.
• Attended St. Mary’s College and won an
additional scholarship from Government
of trinidad and tobago in 1983
• Graduated from University of
Pennsylvania with Bachelor of
engineering degrees in electrical
engineering and Computer science
engineering in 1988.
• Worked with AT&T as a Computer
Consultant and systems engineer from
1988 to 1991.
• Earned a Masters in Business
administration (MBa) from harvard
Business school with honors in 1993.
• Worked at McKinsey & Company from
1993 to 2004 where he became a partner
in 1999. Consulted to public and private
sector clients and developed extensive
experience in Financial, Information
technology, telecom and Petroleum
sectors.
• Joined Neal & Massy in 2004 as the
Executive Chairman for the Energy
Business unit. later in 2004, Mr.
Warner was appointed to the neal &
Massy holding Board of directors. In
2008, the energy and Industrial Gases
Business units were combined under
his leadership. In May 2009, Mr. Warner
was appointed acting Group CeO and
was confirmed as the Group CEO in
december.
• Mr. Warner has been married for 20
years and has 2 children. he is an
active triathlete and participates in
international marathons and triathlons.
34 35
ChIeF exeCutIVe OFFICer’s rePOrt
earnInGs Per share tt$. ¢.
WeIGhted aVeraGe nuMBer OF OrdInary shares In Issue thOusands
reVenue tt$MIllIOns
PrOFIt attrIButaBle tO sharehOlders tt$MIllIOns
1500
100
1.00
80,000
3000
200
2.00
85,000
4500
300
3.00
90,000
6000
400
4.00
95,000
7500
500
5.00
100,000
105,000
9000 6.00
110,000
2000
2000
2005
2005
2000
2000
2005
2005
2001
2001
2006
2006
2001
2001
2006
2006
2002
2002
2007
2007
2002
2002
2007
2007
2003
2003
2008
2008
2003
2003
2008
2008
2004
2004
2009
2009
2004
2004
2009
2009
2,387
142
3,554
249
1.37
103,559
2.80
2,459
159
4,202
299
1.51
105,204
3.37
88,862
2,560
165
5,086
369
1.85
88,822 88,822 88,822 88,822
4.15
88,875
2,796
169
7,704
475
1.90
5.10
93,019
3,045
216
8,426
435
2.43
4.53
96,069
36 37
ChIeF exeCutIVe OFFICer’s rePOrt
the rest of this report provides triple Bottom line
reporting consisting of a Financial review, including
an operation review of each line of business, a health,
safety, security and environment (hsse) review
and a review of our Corporate social responsibility
initiatives and investments.
FINANCIAL REVIEW
hIGhlIGhts:
• Group third party revenue grew by 9% to $8.4
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
negative $71 million in 2008 to $561 million in
2009
PrOFIt and lOss:
The Group revenue increased by 9% while the Profit
Before Tax (PBT) fell by 6.6% and EPS declined by
11% from $5.10 to $4.53. the increase in revenue
reflects the full years’ contribution from BS&T in
2009, versus just seven months in 2008. Bs&t
was acquired on the 1st March 2008, without the
contribution from Bs&t; the Group’s revenue would
have declined by $300 million or 6%. PBt from
BS&T increased in 2009 with a full year of profit
consolidated versus only 7 months in 2008.
In 2009, the simultaneous impact of the global
economic crisis with the inheritance of some under-
performing companies with the Bs&t acquisition
erased the strong performance by many companies.
some of our operations which were negatively
impacted by the downturn are:
• Pres-T-Con Ltd and Tracmac Engineering Ltd. were
adversely affected by the decline in construction
sector projects and activities
• Energy Services and Production companies were
hurt by oil, gas and petrochemical commodity
price collapses
• Jamaican operations with USD loans were
punished by Jamaican currency devaluation
• Automotive sales in Trinidad and Barbados
declined as new vehicle sales dropped with
consumers delaying new vehicle purchases
• Almond Resorts suffered because of low
occupancies and reduced rates affected by the
late opening of hotels under renovation and
by the downturn in u.K., u.s. and european
economies, which contributed to the contraction
in the tourism sector in Barbados and st. lucia.
Group-wide cost reduction initiatives helped
energy and Industrial Gases, Information technology
and Communications, retail and distribution/Food
Manufacturing and logistics, and Financial services
Business Units; all increased profits over 2008.
Particularly pleasing were results from our Guyana
operations.
In the Bs&t acquisition, the Group inherited some
under-performing companies and major turnaround
efforts were successfully undertaken in 2009. In
2010, turnaround efforts will continue at Bahamas
supermarkets, Warrens Motors and almond
resorts.
the impact of the cost reduction and turnaround
efforts was seen throughout the year as the Group’s
operating profit margin increased consistently over
the final 3 quarters of the year, improving from 6.6%
in the first quarter to 8.9% in the final quarter of the
year.
Interest costs increased from $71 million to $108
million, primarily due to the cost of funds used in
the acquisition of Bs&t, which was reported for 12
months in 2009 as opposed to 7 months in 2008.
The taxation charge for the Group declined to
$175 million, compared to $201 million in 2008.
this reduction was due to both a slight reduction in
the effective rate from 28% to 27% as well as the
reduced profitability.
The profits attributable to shareholders declined
by 8% from $475 million to $435 million, while the
ePs fell by 11% from $5.10 to $4.53. the weighted
average shareholding increased 3% in 2009, as
the ePs was based on 93 million shares in 2008 as
opposed to 96 million shares in 2009.
notwithstanding the above, the Group’s
diversification strategy in the last three years has
proven successful. the Group has demonstrated its
resilience to simultaneous challenges in multiple
territories.
BalanCe sheet:
The Group’s financial condition and balance sheet
remain strong. total assets remained at $8.3 billion
at september 2009. disciplined efforts to improve
working capital management and protect cash
produced handsome results. While revenues grew
by 9% in 2009, inventory reduced by 17% and
receivables reduced by 8%. the health of the Group’s
balance sheet improved.
Cash generation across the group improved
significantly with $1billion in cash generated from
operating activities. eBItda increased by 17% and
working capital decreased by $267 million. there
were lower levels of inventories and receivables,
particularly in the automotive & Industrial equipment
Business unit. total borrowings of the Group declined
from $2.4 billion to $2.2 billion, mainly due to the
decline in our working capital borrowings. this
resulted in a reduction in the gearing from 37% to
27%.
Our net assets per share increased from $27.64 to
$28.64. share capital increased from $512 million to
$522 million mainly with the issue of 172,000 shares
under the stock option plan.
Our investing activities utilized $284 million in cash
during 2009, compared to $$1.5 billion in 2008. this
included the acquisition of additional property plant
and equipment of $247 million. dividend payments,
including payments to minority shareholders,
increased from $146 million to $166 million.
the Group has been fully compliant with all debt
covenants as of september 30th, 2009 and has
adequate financial resources to support its anticipated
short- and long-term capital obligations.
LINE OF BuSINESS OPERATIONAL REVIEW
Automotive and Industrial Equipment Business
unit
this Business unit had a very challenging year as the
general decline in economic activity resulted in reduced
demand for new vehicles and construction equipment,
particularly in the second half of the financial year. The
management team quickly responded to the changing
38 39
ChIeF exeCutIVe OFFICer’s rePOrt
economic conditions and was able to increase relative
market share in most areas, while simultaneously
reducing inventory levels and operating costs. the
unit also adjusted its manning levels, mainly in the
areas of contract and temporary employees, and
is now well poised to benefit from any increase in
general economic activity.
Neal & Massy Automotive Limited increased its
market share in a declining market by implementing
innovative strategies in conjunction with the major
principals. This also resulted in a significant reduction
in inventory levels and associated carrying costs.
the used car division achieved record sales during
the second half of the year, through an increase
in the demand for lower cost vehicles. Customer
service continues to be an area of major focus for the
management team, and although some improvement
was achieved during the financial year, a number of
new initiatives will be implemented in the coming
year.
City Motors (1986) Limited continued to be
seriously affected by uncompetitive pricing from
the principal and to a lesser extent by some quality
issues with the Peugeot brand. the company
however continues to remain profitable by prudent
management of its operating costs.
Master Serv Limited also had a strong year
mainly due to an increased demand for “after market”
spare parts as consumers sought to reduce vehicle
maintenance costs.
Tobago Services Limited had an excellent year,
exhibiting double-digit growth. TSL benefited from
an increased demand for new vehicles in the first
half of the year and introduced new product lines, in
collaboration with other Group companies.
Best Auto Limited continues to increase its
market share and profitability, despite some supplier
challenges from its principal.
Automotive Components Limited performed
creditably in the face of increased competition. the
removal of tariff protection on batteries saw the
influx of a number of new players, resulting in a loss
of market share. however, the company responded
by improving the efficiency in its manufacturing
operations, reducing warranty costs consistent with
improved product quality and reducing costs in all
areas of operation and thereby achieved significant
profit growth despite the reduced market share. ACL
introduced a number of new initiatives in the last
quarter in an effort to regain lost market share and
thus far, they are showing promise.
Tracmac Engineering Limited faced the greatest
challenge of all the companies in the automotive &
Industrial equipment Business unit, as there was a
sharp decline in construction activity from as early
as the first quarter of the financial year. Tracmac’s
management team rose to the challenge and
responded quickly by drastically reducing inventory
levels and operating costs, while increasing market
share. these efforts resulted in an acceptable return
on sales for the financial year under review and the
creation of a platform for a return to growth in the
next year.
Associated Industries Limited (Ainlim) in
Guyana has strengthened its product support
capability, and will continue a strategy of building
excellence into its after-market service for the
machinery and automotive businesses. Its distribution
businesses, especially the down trade segment,
remain very strong, and recorded another year of
growth.
Warrens Motors operating in the high-end vehicle
market in Barbados, recorded a loss for the year.
although vehicle sales were weaker than anticipated,
freezes on new orders significantly reduced inventory,
while various operational changes and cost reductions
throughout the business improved the operating
result over the previous year. Higher efficiency and
productivity in after-sales services will be the focus
of the dealership in the coming year.
Dacosta Mannings Auto & Industrial
Department in Barbados delivered a creditable
performance over the past year. In the latter part of
the year, the tyre centres at Warrens and Brandons
were consolidated into the Brandons location.
this division will continue to improve its product
offering, service and efficiencies in the upcoming
fiscal year.
Energy and Industrial gases Business unit
2009 was a year of adjustment. Following several
years of booming activity and rising commodity
prices, the energy and Industrial Gas companies
were forced to adjust to a new reality. several
new projects were postponed indefinitely, and our
upstream and downstream clients all adopted heavy
cost reduction initiatives which put pressure on most
companies in the Business unit. rapid response
through cost reduction, receivables management
and tightening of credit and contracting controls all
helped companies in the unit minimize the impact
of these adverse developments. Opportunities
arose in maintenance services as many plants
incurred voluntary and involuntary shutdowns while
commodity prices weakened.
Neal & Massy Energy Limited - Nascent recovery
is apparent for energy commodity prices, which
bodes well for the near-term outlook for the energy
sector in trinidad and tobago. however, the lack
of success in upstream exploration license awards
is a reason for concern. trinidad and tobago must
accelerate exploration activities in order to continue
the production and plant utilization rates that it
currently enjoys. new gas in particular, must come
on-stream to revive the growth rates the energy
sector experienced in the past.
It’s 50% co-owned company, Neal & Massy
Wood group (NMWg), has broadened its market
penetration providing maintenance to Methanex
trinidad limited. the ongoing work, with bptt’s
strategic Outsourcing Contract agreement (sOCa)
and with BG T&T, has met performance expectations
despite the energy market conditions. nMWG is
proud of its hsse achievements as it approaches 4
million man hours without a lost time Incident.
Neal & Massy Energy Services Limited
(NMESL), the products and service solutions
business, had a disappointing year with some
mixed fortunes. The products side of the business
suffered from reduced expenditure in market capital
spares. however, the service side of the business
enjoyed growth in the rotating equipment services
and equipment repair and preventative maintenance
services of 170% and 42% respectively. Going
forward, the company is completing the integration
of the sales team and the wider integration of nMesl
and nM Insertech (Caribbean) limited (nMICl) to
increase productivity and efficiency in operations.
NM Insertech (Caribbean) Limited. had a very
successful year growing its PBT by 56%. Significant
successes were the completion of electrical and
instrumentation construction services for two offshore
platforms, the continued support for construction of a
gas- to-liquids plant and the building of a new ethanol
plant. The company continues to be a significant
supplier of technical resources, valve services and
technical equipment to the energy-based industries
in trinidad and tobago and the region.
40 41
ChIeF exeCutIVe OFFICer’s rePOrt
Neal & Massy Energy Resources Limited
(NMERL), the production operation arm of nMel,
had a very challenging year. though the production
of oil was above target the steep decline in oil prices
eroded these benefits. The company’s effective cost
management resulted in a marginally positive net
profit for the year. NMERL embarked on a number of
Qhsse initiatives, including the construction of a new
Fiscalization Facility at the Moruga West operations
and the implementation of systems for achieving full
compliance. For the year ahead, the company will be
focused on obtaining new exploration and production
licenses.
Neal & Massy Supply Chain Integrators
(NMSCI) a joint venture company with alaska
supply Chain Integrators and now in its second full
year of operation, continued to provide procurement
and warehouse services to the nMWG sOCa project.
nMsCI also secured two contracts with atlantic lnG
to operate their warehouse facilities in Pt Fortin.
Strategies to expand the business, within the
energy-based industries, will continue in the coming
year. nMsCI performed well over the past year, both
financially and in being HSSE compliant, without any
lost time Incidents.
Industrial gases Limited (IgL) enjoyed a
challenging but successful year. the demand
for oxygen, acetylene and welding supplies was
adversely affected by the collapse of the scrap
metal industry. These gaps were filled by the heavy
demand for argon, needed for new plant construction
activities and for nitrogen from the downstream
process plants for new plant commissioning and
major plant shutdowns. the business overcame
several supply challenges facing interruptions in
raw carbon dioxide, as well as nitrogen and argon
supplies. the issue of the long term reliability of
nitrogen, oxygen and argon will be resolved with
the proposed start-up in the last quarter of 2010 of
a relocated air separation Plant by air liquide, our
joint venture partner. In addition, IGl is evaluating
its production capacity for high quality food grade
carbon dioxide.
Trintogas Carbonics Limited experienced a
marginal increase in revenue however the profit
before tax was lower than the previous year because
of reduced plant efficiency and reliability.
Caribbean Industrial gases Limited again
performed well, achieving its budgeted profits as
well as an excellent safety record. The plant was
successfully expanded to facilitate higher production
levels. The company is expected to reap the full
benefits of this expansion after a planned overhaul
of its main compressor train scheduled for the latter
part of the 2009/2010 financial year.
NM Petrochemicals Services Limited benefited
from a number of planned and unplanned catalyst
change-outs at the methanol and ammonia plants
and exceeded budgetary expectations.
gas Products Limited (gPL) produced favourable
operating results during 2009, despite the severe
impact of the global economic downturn on the
Jamaican economy which resulted in a very difficult
operating environment. A significant devaluation of
the Jamaican currency (22.6%) in the first half of the
year and the associated loss on the US$-denominated
loan eroded its favourable position and GPl was
unable to meet its financial targets. During the year,
GPL made significant progress in developing a new
business segment and now actively markets lPG for
non-cooking applications (NCA) which include water
heaters, dishwashers, boilers and standby power
generators.
Cool Petroleum Limited (CPL) owned 40% by
the energy and Industrial Gases Group, suffered from
the same devaluation loss problem that inflicted GPL.
however, given CPl’s debt burden, these losses wiped
out profits and resulted in an earnings loss to Neal
& Massy. While the business continues to generate
healthy cash flows and services its debt payments,
declining oil prices have reduced the gross profit
margins and adversely affected profitability. CPL will
continue its HSE excellence, cost reduction initiatives
and product diversification strategies into the new
year.
Demerara Oxygen Company Limited (DOCOL)
in Guyana, commissioned a new LPG filling plant in
2009 and this contributed to greater efficiency and
productivity. It also facilitated the closure of the
secondary plant at new amsterdam and products are
now bottled in the Georgetown area and transported
throughout the country. the company continued to
strengthen its HSSE culture and was recertified for
IsO 9001: 2000 during the period.
Dacosta Mannings Texgas in Barbados
experienced increased costs in transportation and
in maintenance of cylinders, however the unit
performed reasonably well. the division will continue
to strive for increased market share while seeking
innovative ways to reduce expenses in the following
fiscal year.
Food group Business unit
Food Retailing
TDL Retail (Hilo Food Stores, LB’s and
FoodMaster’s) had another challenging year,
fraught with food price inflation and the tightening
economic climate having a negative impact on
consumer behaviour. strict cost management,
however, resulted in a creditable performance for
the company when compared to the previous year.
Staffing the stores, particularly in the north and west
of trinidad continues to be a challenge, and has again
negatively impacted customer service. during the
year the Chaguanas store was expanded and work
on a major refurbishment of our alyce Glen store
was also undertaken.
Super Centre Limited had a strong start to
the financial year compensating for a slow last
quarter which signaled a significant slow-down in
the Barbados economy. the company met sales
and profit expectations and continues to build on
developing product selection through direct buying
and adding value to the fresh food offering. super
Centre showed strong support for local agriculture
and plans to create added value products to further
support the industry going forward.
The knights Pharmacies chain also performed
well and strategies are being developed to further
incorporate pharmacists in overall health care
management.
Food/Consumer Distribution & Logistics
Marketing & Distribution (M&D) was able
to again deliver record improved revenues and
profits, notwithstanding the weakened economic
environment. M&d’s trading departments–Food &
General Merchandise, Geddes Grant, Pharmaceuticals,
agricultural & Industrial Chemicals and Cigarettes–all
delivered commendable performances. the Food &
General Merchandise and Geddes Grant departments
continue to adapt swiftly to changes in consumer
behaviour. In the new financial year the company
will focus on improving operational efficiencies while
actively pursuing new business opportunities and
exploring new business models to respond to the
changing competitive landscape.
42 43
ChIeF exeCutIVe OFFICer’s rePOrt
Huggins Shipping and Customs Brokerage
Limited had a year of flat earnings although
customer count grew and service levels continued
to be high. huggins sustained its position as the
service provider of choice in the gas and oil sector.
all units of the companies’ operations performed
well and are poised to repeat their performance in
2010.
Melville Shipping Limited performed credibly.
While its profits declined, the company continues
to develop its reputation as a leader in the shipping
industry, balancing sound financial performance with
quality service. Melville is well positioned for future
growth and adheres to the highest levels of hsse
best practices in servicing a demanding customer
base.
Trading & Distribution Incorporated (TDI) in
Guyana recorded flat earnings during the year due
to price competition in key product categories and
excess inventory holdings, resulting in increased
working capital costs. While challenges still remain
in the consumer foods environment including weak
demand in some areas, the outlook for stabilization
in commodity prices appears more favourable. tdI
continues to focus on developing its downtrade
distribution business and on expanding its local
representation of international and regional brands.
S.B.I Distribution in Barbados performed
well during the year under review. A strong first
half sales performance enabled SBI to exceed
budgeted expectations. Efficiencies gained through
its warehouse It system together with changes to
delivery methods and consolidation of its cold storage
provided cost savings and enhanced profitability.
SBI acquired the Pfizer line during the latter part
of the year and has plans to further develop its
pharmaceutical division. Plans for the new fiscal
year include increased focus on greater penetration
into the smaller retailers’ segment along with
exploring other expense control initiatives. knights
Limited (Trading as Rainbow Products) faced
competition from international tissue paper product
brands however careful management resulted in
satisfactory financial results.
Agro Chemicals Incorporated experienced a
challenging year. despite reduced demand and
unavailability of certain products from key suppliers,
this company produced satisfactory results which
were just below those of the previous year.
BS&T International Development (Miami),
a procurement business for Caribbean retailers,
performed well, and will look for opportunities to
expand the number of markets serviced during 2010.
the integration of this unit with neal & Massy Inc,
also in Miami, will be completed this year.
Peronne Manufacturing achieved operational
profitability over the past year with a more focused
product line of processed and prepared meats.
notable growth of the gourmet range in the super
Centre supermarkets, together with increased sales
of frozen bulk meat to commercial kitchens and the
trade, also bolstered Peronne’s performance. In
2010, Peronne will improve the availability of its
products through its distributor sBI distribution
Inc.
Booth Steamship experienced a considerable
decline in overall cargo volumes handled at the
Bridgetown Port and accordingly its results were well
below target and those of recent years although it
maintained market share with the Crowley line.
Dacosta Mannings Shipping fared somewhat
better with its trans-shipment business through
trinidad on the Bernuth line but also fell below
expectations. Indications are that low volumes of
imports into Barbados will continue through much
of the new financial year due to reduced demand.
Roberts Manufacturing has shown an improved
financial position for the year under review after
being faced with high input costs in the previous
year. reductions in energy costs followed by
commodity prices after the first quarter of the
financial year together with a comprehensive review
of the cost and production of all product lines have
allowed for the improvement in earnings. the
removal of the Common External Tariff on soybean
oil and margarine in some regions of the OeCs and
in Trinidad and Tobago has, however, reduced export
sales and earnings. For the year ahead, further
production efficiencies are anticipated with proposed
improvements to the soybean oil bottling line, and
improved production planning on the Margarine
lines.
Pinnacle Feeds had a reasonably successful year
after starting with high fuel and commodity prices.
Prices paid in the first quarter of the financial year for
corn and soybeans were the highest ever recorded
since the company began operating. however,
reductions in commodity prices during the financial
year allowed for feed price reductions in February,
april and July 2009.
H.D. Hopwood & Company Limited had a
successful year, despite a steep devaluation in
the Jamaican dollar, and a resulting contraction in
demand across all areas of business. By rapidly
adapting to the changing business environment and
adjusting costs, the company was able to protect and
improve its operating margins. during the year, the
company undertook several initiatives to improve
employee engagement and they were well received
by the staff. In addition, investments were made in
leadership development activities that were aimed at
building a high performance team.
Tourism / Hospitality
Almond Resorts Incorporated had a difficult
year in 2009. the late opening of Casuarina Beach
Club and almond Beach Club into a depressed world
economic climate resulted in unanticipated losses.
Worldwide, the tourism sector, dependent as it is
on discretionary spending, suffered great losses.
at almond, revenue and average rates declined as
occupancy and average daily rates fell well below
projections. arI’s marketing efforts yielded better
occupancy levels than many other hotels in Barbados
but still well short of break-even requirements. The
arI management team took steps to operate more
efficiently and implemented cost reduction strategies
across the organization. arI also reduced utility costs
through various “green” initiatives.
ARI is Neal & Massy’s first foray into the tourism
and hospitality sector. arI and its investments in
Casuarina Beach Club are prime property locations
in Barbados. We recognize the potential for
development projects at the Beach Village location
and are encouraged by the growing popularity of
the Casuarina Beach Club. there is an air of prudent
optimism as the world economies gradually climb out
of recession and arI anticipates a better year based
on anticipated increase in the demand for travel.
Financial Services
united Insurance in Barbados was spared the
consequences of hurricanes or any other major
catastrophic events, and experienced a good
underwriting result in a very competitive environment.
While its investment earnings were down in the first
half of the year, these recovered reasonably by the
close of the year. the company has placed more
44 45
ChIeF exeCutIVe OFFICer’s rePOrt
emphasis on the management of its brand and
marketing, which should redound to the benefit of
the company in the coming years. the company
continues to seek ways to diversify and spread its
risks within and outside of the region to mitigate
against the impact of large losses to the portfolio.
United has retained its ‘A- Excellent’ A.M. Best rating,
the highest awarded to Caribbean insurers.
general Finance Corporation (gFC) maintained
its revenue and operating profit at 2008 levels,
despite the substantial contraction in its major areas
of business. the higher cost of funds was offset by
reductions in operating expenses, while the level
of loan delinquency continued to match industry
standards. the company continues to pursue a
strategy of widening both its customer and depositor
base.
Neal & Massy Remittance Services Limited
was adversely impacted by the shrinkage in the
personal remittance industry worldwide. transaction
volumes were down with a resulting decrease in
foreign currency available for trading.
NM Services Limited (NMSL) in Guyana realized
improved earnings from its equipment financing
business, Customs and shipping and that, together
with stable performance for the remittance business,
enabled the company to achieve targets. the focus
will now be on increasing its market share in the
shipping business.
Magna met targeted expectations in all but one
territory and continued its growth in the region
despite a slow down in consumer spending in 2009.
The company achieved growth by expanding its
overall loyalty processing services to some of the
larger clients, particularly in trinidad. Jamaica also
added 51 new locations during the year. Magna
has grown to 1.35 million customers across the
region. 2009 saw over 15 million transactions and
$3.8 billion in retail purchases conducted through its
retail partners. Growth for 2010 is expected to be
achieved through new revenue streams from other
loyalty processing services, together with further
penetration of its existing markets.
SurePay, a division of Illuminat (Barbados) limited,
had another successful year and has maintained its
position as the dominant provider of electronic bill
payments based on an increase in transactions and
collection points for a number of utility, financial and
insurance companies, which in turn has enabled a
high level of convenience to consumers island-wide.
new services are being developed to be introduction
during the new year.
Properties/Construction Services
Pres-T-Con group (Pres-T-Con, RABCO Construction
and Pres-T-Con Equipment) was affected by the
global recession, coupled with the Government’s
downward adjustment to its Budget. Faced with a
major decline in construction projects, Pres-T-Con
Group made the necessary adjustments to maintain
its leading position as the preferred manufacturer of
pre-stressed concrete products and deep foundations
installation contractor in trinidad and tobago and
throughout the Caribbean. Over the past year, Pres-
T-Con Group successfully undertook a new venture
into alternative deep foundation at Petrotrin’s
Refinery utilizing Continuous Flight Auger Cast piles.
Pres-T-Con Group’s plans for the year ahead include
penetration of the Guyana market, improved product
offerings and enhanced efficiencies.
Nealco Properties Limited (NPL) placed major
emphasis on its cost savings and customer service
strategies throughout the year with the objective of
retaining an occupancy rate above 95%. Focus on
routine and major upgrade maintenance continued
to support the market value of its properties. a major
upgrade was completed on one of the properties in
San Fernando. NPL’s revenue and profit increased
over the previous year.
Nealco Real Estate Limited (NREL) continued
to record a satisfactory performance. the company
continued to build its client base and has been able
to steadily increase its market share in consultancy
and property management services. nrel’s
expertise, experience and integrity in the real estate
market augur well for continued growth in a highly
competitive market.
S.P. Musson Son & Company Limited in
Barbados produced enhanced results over budget
and the previous year through sales of house lots
primarily in its development at Friendly hall, st. lucy.
although rental increases have not been possible
because of reduced retail activity, high occupancy
levels in its properties and those under management
including sunset Crest have supported earnings. the
company recently began a new land development at
Gemswick, st. Philip and also continues to grow its
general real estate services under the Musson realty
brand.
The Pierhead Project has been rekindled since
neal & Massy’s acquisition of Bs&t. In order to
identify options for a new neal & Massy/Bs&t led
initiative, an advisor has been retained to interact
with various consulting parties as well as the Barbados
Government to prepare a high-level plan. Pending
the result of the consultations and the development
of the concept plan, decisions on the next step,
whether to work independently or jointly with the
Barbados Government, will be taken.
Information Technology & Communications
(ITC)/Other Services
The ITC Business Unit closed the year exceeding its
3-year profit growth target set in 2006. On a year-
on-year basis, 2009 showed growth in profit and
strong free cash flow and shareholder value added
performances.
Illuminat (Trinidad & Tobago) Limited
showed gains in all of its key measures, significantly
improving its customer satisfaction ratings and
growing its profit. Among the major successes during
the year were contracts in transport, health, finance
and energy. Next year the company will provide new
services and higher bandwidth at lower costs through
its upgraded broadband network; as well as bring an
expanded range of HP, Avaya, Education and CISCO
solutions to the market. It will also accelerate its
efforts to penetrate latin america for its retail and
Oracle solutions.
Illuminat Barbados and Eastern Caribbean
strengthened its market position with significant
achievements in the financial, education and
government sectors through the implementation
of new technologies in tandem with a number of
its international partners including hP, nCr, avaya,
Oracle and Motorola. additionally, it enjoyed market
share gains with its Xerox imaging and printing
solutions portfolio within antigua, tortola and
surrounding islands. In the coming year it will launch
the Internet-based version of its highly successful
surePay bill payment service.
Illuminat Jamaica’s performance was adversely
affected by a challenging economic environment.
Many private and public sector projects were delayed
and Jamaica experienced significant currency
devaluations further reducing profits. The company,
however, deepened its penetration of the key
46 47
ChIeF exeCutIVe OFFICer’s rePOrt
education sector with a significant win for PCs and
multimedia equipment for 178 secondary schools.
It also reduced its dependence on foreign resources
through local capability building, and successfully
launched new offerings which will increase the flow
of recurring revenues in the coming years.
Pereira & Company Limited exceeded all
financial targets and received an outstanding service
rating from its customers. In 2009 the company
embarked on a programme of regional expansion,
introducing diebold in Barbados and Pitney Bowes in
Guyana. In trinidad and tobago rICOh continues to
be the market leader in office equipment, while the
Toshiba brand significantly exceeded its targets. The
furniture and office interiors division almost doubled
its profits and the software division experienced
notable success with wins in both the financial and
office equipment areas.
Three Sixty Communications, our long-distance
communications provider, delivered strong growth in
the key enterprise services revenue stream. Overall
however, the year was a challenging one and a flat
profit performance was delivered. The company
expects to further penetrate the enterprise services
market, launch services for the sMe segment and
in a well regulated environment deliver profitable
inbound services.
Nealco Datalink Limited’s call centre revenue
stream performed on target, an encouraging sign
as the company pursues the imperative of moving
up the outsourcing value chain. Further efforts to
penetrate the emerging local market (government
and financial) as well as international markets for
this service will be its focus in the coming year.
CCS guyana Limited (CCS) successfully
introduced electronic security offerings in its product
line-up and obtained three major tenders for the
service during the year. the company retained its
share of market for IT and office equipment services;
and the provision of atM’s and related services
to the financial sector had a positive impact on
performance. the company will seek to strengthen
customer relationship management and dealership
relations during the new year.
NM Security Solutions Incorporated (NMSS)
in Guyana did not meet expectations as growth
opportunities identified for cash services, and a
redirection of guarding services into more profitable
segments, were slow in gaining momentum. With
the infrastructure in place and the initiatives taken
during the year, it is anticipated that the company
will return strong growth in the future.
BCB Communications the in-house advertising
agency for Bs&t and Banks holdings, performed
below budget because of reduced advertising spent by
its clients but did a good job of containing expenses.
Seawell Air Services, operating at Grantley
adams International airport in Barbados, endured
a particularly challenging year. the commercial
aviation industry was hard hit by the contraction in
international economic activity in 2009 and almost
all air carriers suffered significant losses. Seawell
suffered from loss of revenue from clients who
stopped flying to Barbados, a major client who
switched to the competition and lower prices to
retain other customers. as a result, seawell closed
the year with a loss. staff reductions were inevitable
and were discussed with the representative union.
seawell has also embarked on initiatives to more
effectively compete in the new realities of the airline
industry by examining its systems and procedures
and conducting staff training to reduce operating
costs and improve service levels. With the onset
of the winter tourism season, seawell has returned
to profitability but the difficulties for commercial
aviation are expected to continue during 2010.
Dacosta Mannings Retail Division in Barbados
experienced lower than anticipated sales in lumber,
furniture, appliances and hardware for the fiscal year
as consumer spending contracted bringing about
losses after the 2009 Christmas sales. the division
exited the lumber business which was located
at Fontabelle and the speighstown store ceased
operations in July. the warehouses for hardware and
furniture and appliances were consolidated into one
location at Brandons and the tile and Bath store at
Fontabelle was consolidated into the main store. at
the end of the financial year a new store was opened
in Cave shepherd on Broad street in Bridgetown.
This new store has exceeded expectations to-date
although overall sales are still depressed across the
retail sector as the Barbadian economy has grown
tighter in the second half of 2009. the division
continues to position itself in this recessionary period
to be as efficient as possible through cost saving
measures, and has returned to profit in the months
leading up to Christmas in the new financial year.
Associated Companies
neal & Massy Wood Group, Caribbean Industrial
Gases, nMaP services and Cool Petroleum have been
discussed under the energy and Industrial Gases
Business unit.
Bahamas Supermarkets Limited (BSL)
narrowed its losses from 2008 by half in 2009. this
was achieved by reducing costs and closing one
unprofitable store. Efforts to improve Gross Profit
margins were stymied by the protracted timeframe
that was required to negotiate refinancing of debt
at the holding company to facilitate an injection of
additional funds required to support direct buying
and better credit terms and prices with suppliers.
recovery was further compounded by the global
recession which has taken its toll on the tourism
industry in Bahamas. Consumers are far more price
sensitive than ever before. neal & Massy has acquired
majority voting rights in the last round of capital
injection and is currently implementing a full-fledged
turnaround programme that focuses on restoring
customer confidence, realigning product prices to
market, motivating employees, improving the supply
chain, increasing controls with strong financial and
operations reporting and cost-reduction.
Banks Holdings Limited (BHL) in Barbados
recorded reduced profits of its Group for the financial
year ended 31st august 2009. Most operations in
Barbados, and its Guyana associate, commendably
matched or exceeded their 2008 results in the face
of the recessionary environment. however, Bhl’s
Belize associate incurred a loss as it was unable to
overcome the dual challenges of adverse weather
patterns and significant lows in orange juice
concentrate commodity pricing during the year. there
has been a subsequent recovery in citrus concentrate
pricing, now almost double the 2008/2009 low, and
indications are that the price increase should hold for
the foreseeable future.
Gablewoods Supermart Limited through its
operating company in st. lucia, Consolidated Foods
ltd, has performed well and grown through the
period under review. this can be attributed to a new
“warehouse’ store” offering a range of large-pack food
items and domestic hardware and a fall in electricity
rates. the st lucia economy, however, is becoming
more challenging and management are focussed
on finding measures to ensure the sustainability of
profits.
group 4 Securicor (g4S) operations in trinidad
and tobago continue to record strong results across
its core competencies despite the contraction of
48 49
ChIeF exeCutIVe OFFICer’s rePOrt
the economy and the shrinking labour market.
the strategic decision, to position the company as
a partner that provides outsourced services within
sectors where security and safety risks are a strategic
threat, has served the business well.
G4S operations in Barbados had a difficult year, as
a quality provider for security services, operating in
contracting economies. Management has responded
and 2010 should see much improved results.
Signia Financial group in Barbados performed
very well. the lending department continues to be
the main driver of profits with marked year-on-year
increases in profitability and loan growth. However,
with the decline in the stock market, the profitability
of the equity trading department has fallen. Foreign
exchange trading provided a good contribution, but
this was also negatively impacted by the economic
environment and reduced foreign exchange in the
market. Interest rates have declined, reducing
funding costs and positively impacting interest
income. the company put additional measures
in place to manage delinquencies and given the
continued contraction of the market, the company is
approaching 2010 with prudence.
Caribbean Airport Services Limited (CAS)
which provides ground handling services at antigua’s
international airport is a joint venture between lIat
(51%) and seawell air services (49%). during this
year, Cas lifted its image by improving customer service
through staff training and fine tuning its standard
operating procedures. Cas improved its operating
performance and achieved increases in certain
handling fees. Cas was also awarded the contract to
handle two additional carriers, one from October 2009
and one other during the 2009/10 winter.
Tower Hill Merchants PLC, based in the
UK, benefited from a combination of stable food
ingredient prices, new business with product
substitutes, and lower overheads to deliver a strong
performance.
Medina Foods Incorporated of Montreal, Canada
provides consultancy services and food safety audit
services to food processors and producers for the
development and implementation of food safety
assurance programmes. a key area of its business
is the audit of airline caterers worldwide on behalf
of many major airlines in a strategic alliance with
Iata. While still a small company, Medina’s results
have improved in recent years although profits were
reduced this last year as a result of lower airline
activity.
HEALTH, SAFETY SECURITY AND THE
ENVIRONMENT (HSSE)
This financial year saw a continued emphasis on the
deepening of the hsse processes and procedures
embarked upon previously.
Specific to the Group reporting requirements
a concerted effort was made regarding monthly
submission of the hsse leading and lagging
Indicators. the compiled data was analysed in
order to determine the overall performance of the
companies within the Group. It must be noted that
there has been improvement in all cases with the
most significant being a reduction in the number
days away from Work Cases (daFWC). root
Cause analyses were conducted within the incident
investigation process and lessons learnt discussed
and shared during monthly meetings.
From the leading and lagging Indicators reported
on a monthly basis, an overall hsse performance
matrix which plots companies’ composite performance
against hsse lagging Indicators (outcomes) versus
performance against hsse leading Indicators (inputs)
was introduced at the beginning of the financial year.
The matrix was used to evaluate and report on the
sustained efforts for each of the individual companies
across the group and compare progress being made
among the Group’s companies. Monthly reviews
were conducted during the hsse meetings with all
of the practitioners, and at quarterly meetings which
included CeO’s and directors.
In consultation with Group companies that had
already adopted comprehensive hsse Management
systems, an overall hsse Management system
framework was developed for the neal & Massy Group
of companies and introduced at the beginning of the
year. each company within the Group is required to
adapt and adopt the hse Management system for
its operations. the required training and awareness
was conducted for all of the hsse practitioners.
Companies have begun implementing the system
and are continuing to improve in preparation for
audits during this financial year.
Continued emphasis on ensuring compliance
with the Occupational safety and health (Osh)
act are complied with have resulted in satisfactory
compliance levels across the Group over the past
financial year. The audit function within the HSSE
Management system will be used as the assurance
tool for continued monitoring and improvement in
this regard.
a number of visits were conducted at the regional
locations in Guyana, Barbados and Jamaica and these
locations appraised of their observed performance
levels. these visits will continue in order to gauge
and assist with improved levels of performance and to
enhance Group and other reporting and compliance
obligations.
CORPORATE SOCIAL RESPONSIBILITy
at neal & Massy we recognize and nurture the
symbiotic relationship between our Corporate social
responsibility and our companies’ human capital
development and financial performance. We realize
that our investments and efforts to contribute to
educational, social, cultural, sporting and community
initiatives in the countries in which we operate
redound to our benefit. Healthier, better educated
and more fulfilled citizens are better employees,
customers and business associates. the more
impact we can have towards the enrichment and
development of the societies in which we operate, is
the safer and more prosperous those societies will be
for our business operations.
neal & Massy’s initiatives and investments in the
interests of its Corporate social responsibility have
been outlined earlier in this report and are not
repeated in this section. Please review the Corporate
social responsibility section at the front of this annual
report to review our Csr contributions in 2009.
CLOSINg REMARkS
The late Bernard Dulal-Whiteway was an inspirational
leader. His flame burned brightly through his
leadership example and the mentoring that he
provided to Neal & Massy executives and others. He
leaves behind him a legacy of exceptional performance
and important values that are treasured at neal &
Massy. he has inspired many of us to emulate his
warmth, humility and fairness that balanced his
astute business sense. Bernard passed the torch
to a group of executives whom he recruited and
developed individually to continue the great work of
the neal & Massy group of companies in providing
50 51
healthy returns to shareholders, creating a safe and
fulfilling work environment for its employees, and
contributing to the development of the societies in
which we operate.
as a result of my appointment as President and
Group CeO, linford Carrabon who chaired the
automotive and Industrial equipment Business unit
last year, will replace me as the Executive Chairman
of the energy and Industrial Gases Business unit.
as the previous CeO of Industrial Gases limited
as well as previous Chief of staff for neal & Massy
Wood Group’s sOCa contract with bptt, linford
is no stranger to the energy and Industrial Gases
leadership team and client base.
david O’Brien who chaired the Property/Construction
services and Financial services Business units will
replace Linford Carrabon as the Executive Chairman
of the automotive and Industrial equipment Business
Unit. The Pres-T-Con Group of companies will move
to the automotive and Industrial equipment Business
unit and continue to be chaired by Mr. O’Brien.
anthony King, CeO of Bs&t will continue his role
as the Executive Vice President for Neal & Massy in
Barbados and will take on the additional responsibility
of Executive Chairman for the re-intergrated
Financial services, Property and Other Business unit.
In addition to recombining the property and financial
services companies into a single Business unit, other
companies such as the Magna companies, daCosta
Manning, roberts Manufacturing and the airport
services companies have also been added to this
unit.
the Information technology and Communications
Business unit will retain the traditional ItC related
companies as well as security services related
subsidiaries and associates.
Last year, Bernard Dulal-Whiteway introduced new
job titles and new job responsibilities in his quest to
strengthen the senior leadership team. he created
two new job titles: Executive Vice President and
senior Vice President. Consistent with the desire
to leverage the broader executive team in group
leadership roles, we are proud to announce that
Paula rajkumarsingh, having been appointed to the
neal & Massy holdings Board of directors in 2009
joined anthony King and earl Boodasingh as an
Executive Vice President of the Group. In addition,
other Executive Chairmen of Business Units, Linford
Carrabon, Frere delmas, Keith thomas were also
appointed as senior Vice Presidents in addition to
Christian Maingot, Judith Bowen and david O’Brien
who are already senior Vice Presidents.
In 2010, the Group will continue its focus on the
5 Management Priorities which were identified for
running all companies during the current economic
down-turn: being realistic about what can or is likely
to happen, disciplined working capital management,
cost reduction and asset utilization improvement,
tight controls and attention to risk management, and
thinking outside the box will continue to be guiding
priorities for running the operations of the Group’s
companies. In addition, the Group is well poised to
continue its growth objectives. select opportunities
for inorganic growth will be considered in 2010.
the Group has some assets and investments
which are not earning returns commensurate with
capital employed. the Group’s portfolio of assets and
investments is being reviewed and divestment of
some non-strategic assets will be pursued in 2010.
along with its portfolio review, the Group will also
revisit its long-term corporate strategy and develop
Business unit strategies for implementation over the
next 5 years.
In closing, I wish to express my condolences to the
family, friends and associates who survive Bernard
Dulal-Whiteway. I will forever be grateful to Bernard
for his mentorship and guidance. his legacy is etched
in our hearts and our minds. he leaves behind a
strong and great company with a track-record for
performance, caring that extends to its employees,
customers and communities in which it operates and
a thirst for excellence. We have inherited a company
that is a Force for Good in our home countries and
for our region.
I thank and congratulate the entire neal & Massy
team, including our recently acquired Barbadian
colleagues for their hard work and proactive
response to the economic downturn. I appreciate
their dedication and commitment demonstrated in
work ethic and the Group’s results.
I also thank our Chairman, arthur lok Jack and
my fellow Board members for their counsel and
support through a very difficult year. I am honoured
by the confidence they have bestowed upon me and
will continue to seek their valuable counsel in the
future.
to our prized customers and business associates,
thank you for your continued support and partnership.
We are continuously learning and continuously
improving, so we look forward to your continued
support and feedback.
to our shareholders, I appreciate the faith and
confidence that you demonstrate by investing in our
Group. We continue to operate with your interest at
the forefront of our concerns. We look forward to
serving you for many years to come.
52 53
dIreCtOr’s InterestdIreCtOr’s rePOrt
The Directors have pleasure in submitting their Report and the Audited Financial Statements for the financial
year ended 30th september 2009
Principal activities
the main activity is that of a holding Company.
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
Dividends
The Directors declared a final dividend of $1.00 per share, making a total dividend of $1.40 per share
for the financial year. The final dividend will be paid on 18th January 2010 to shareholders whose names
appear on the register of members of the Company at the close of business on 30th december 2009
Directors
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
the Board by rotation and being eligible offer themselves for re-election until the close of the third Annual
Meeting following this appointment.
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.
Directors’ and Substantial Interests
these should be read as part of this report.
Auditors
The Auditors, PricewaterhouseCoopers, retire and being eligible offer themselves for re-appointment.
By Order Of the Board
Michael A. Phillip
Company Secretary
15 december 2009
The interests of the Directors holding office at the end of the financial year in the Ordinary Shares of the
Company were as follows:
30/9/09 30/9/09
Ordinary Shares
Beneficial Non-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 “
Paula Rajkumarsingh 115,995 “
E.G. Warner 41,257 “
B.W. Young Nil “
There has been no change in the Directors’ interests occurring between the end of the Company’s financial
year and one month prior to the date of the notice convening the annual Meeting.
There were no beneficial interests attached to any shares registered in the names of the Directors in the
Company’s subsidiary companies, such shares being held by the directors as nominees of the Company
or its subsidiaries.
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
30/9/09 15/11/09
Ordinary Shares
the national Insurance Board 17,958,658 18,059,199
A substantial interest means one-tenth or more of the issued share capital of the Company.
54 55
ARTHUR LOk JACk
In 1998, Mr. lok Jack was elected to the Board of
neal & Massy holdings limited and was appointed
Chairman in June 2004. He is also the Executive
Chairman of the associated Brands Group of
Companies and Chairman of Guardian holdings
limited and Caribbean airlines limited. he serves on
the Boards of many other Caribbean companies. In
2001, he was voted Master entrepreneur of the year
and in 2002, he was awarded an honorary doctorate
of laws and recognized as a Caribbean luminary by
the university of the West Indies. Mr. lok Jack is
also a recipient of the prestigious Chaconia Medal
(Gold) for his contribution to business development
in trinidad and tobago. In 2004 he was inducted
into Queen’s royal College (alma Mater) hall of
honour and in november 2009, he was inducted
into the trinidad & tobago Chamber of Industry and
Commerce’s Business hall of Fame.
E. gERVASE WARNER
Mr. Warner is the President and Group CeO of the
neal & Massy Group of Companies. Prior to and
throughout his appointment in 2009, he also served
as the Executive Chairman of the Group’s Energy &
Industrial Gases Business unit.
Mr. Warner holds an MBa from the harvard Graduate
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
airlines and the trinidad and tobago Chamber of
Commerce.
Mr. Warner also holds Bse degrees in electrical
engineering and Computer science engineering from
the university of Pennsylvania and has over 20 years
of international experience working in the USA, Latin
america and the Caribbean.
DR. ROLPH BALGOBIN
dr. Balgobin is the Chairman of Quicksilver
Convenience ltd. and the Competitiveness Company.
He previously held the posts of Executive Director
at the arthur lok Jack Graduate school of Business
and Project director in the Global Business services
unit of Proctor & Gamble for the europe, Middle east
and africa region.
he holds a doctor of Business administration (dBa)
degree from the Manchester Business school at the
university of Manchester, as well as an eMBa and a
B.sc. in Industrial Management from uWI. he also
holds an aCCa diploma in Corporate Governance and
a Master of studies from the Judge Business school
at the university of Cambridge.
dr. Balgobin currently serves as Chairman of the
Point lisas Industrial Port development Company
(PlIPdeCO), deputy Chairman of electrical Industries
limited, and is a director of the telecommunications
services of trinidad & tobago (tstt), the Brother
Jerome Foundation and youth Business trinidad and
tobago.
Arthur Lok JackChairman
Trinidad and Tobago Citizen
BOard OF dIreCtOrs
Dr. Rolph BalgobinTrinidad and Tobago Citizen
E. gervase WarnerPresident & Group Chief Executive Officer
Trinidad and Tobago Citizen
56 57
Robert BermudezTrinidad & Tobago Citizen
Earl BoodasinghTrinidad and Tobago Citizen
ROBERT BERMuDEz
Mr. Bermudez is the Chairman of the Bermudez Group
of Companies. he is also associated with several
other corporate bodies in and out of trinidad and
tobago.
EARL BOODASINGH
earl Boodasingh is the Chairman of neal & Massy’s
Food/Consumer distribution & logistics regional
Business unit.
Mr. Boodasingh joined the neal & Massy Group in
1981 and has held many senior positions across the
Group throughout his tenure. his career within the
group began at neal & Massy Industries limited as
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
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
Mr. Boopsingh has had a distinguished career in the
Petroleum sector. he is, at present, the Chairman
of Caribbean energy specialists limited and the
eastern Caribbean Pipeline Company. Mr. Boopsingh
is the recipient of many accolades, including the
title of distinguished Member, sPe International
in 2000; distinguished lecturer, sPe International
in 1977 and the distinguished Graduate award at
the 50th anniversary of the university of the West
Indies. In 2002 he was also awarded the Chaconia
Medal (Gold). Mr. Boopsingh, who is also a Msc.
Graduate in Petroleum reservoir engineering from
the university of london, is the author of the book
“Oil, Gas and Development”.
BOard OF dIreCtOrs
Trevor BoopsinghTrinidad and Tobago Citizen
58 59
geoffrey CaveBarbadian Citizen
gEOFFREy CAVE
Geoffrey Cave is the Chairman of the Board of
directors of Cave shepherd & Co. limited – a
Barbados-based corporation with subsidiary and
associate companies located across the region.
Mr. Cave joined Cave shepherd, which was a
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
career in business, serving as director and Chairman
of several leading private and public organizations in
Barbados.
In 2000, Mr. Cave was awarded the Barbados
Centennial honour and the Caribbean Master
entrepreneur award the following year. In the
Queen’s new years’ honour’s list in 2003, he was
appointed Commander of the Most Excellent Order of
the British empire and in October 2007 the university
of the West Indies conferred on him an honorary
degree of doctor of laws (lld). More recently, in
October 2009, he was appointed an Independent
senator by the Governor General of Barbados.
SIR ALLAN FIELDS
sir allan Fields joined the neal & Massy board in
1998 to 2008, and was reappointed in 2009. he was
the Chairman of the Barbados shipping & trading
Co. ltd. (Bs&t). Formally trained in Mechanical
engineering, he has served as Managing director of
lucas Industries Barbados’s operations, Bs&t and
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
Organization and Chairman of Banks holdings limited,
Barbados dairy Industries ltd. and Cable & Wireless
(Barbados) ltd. he was recently appointed Chairman
of the Caribbean broadcasting Corporation. he is
Barbados’ non-resident Ambassador to the Peoples
republic of China. he also serves as an Independent
senator in the Barbados Parliament.
G. ANTHONY kING
G. Anthony King has been the Group Chief Executive
Officer of the Barbados Shipping & Trading Company
limited (Bs&t) since October 1, 2004.
Mr. King is also a director of other publicly traded
companies in Barbados such as Banks holdings
limited, almond resorts Inc. and the Barbados
national Bank. he is also the Chairman of the
tourism development Corporation in Barbados
and a director of the Barbados Private sector
association.
his business career spans almost 35 years, 23 of
which were spent with the neal & Massy Group. Prior
to his departure to take up the Bs&t appointment,
he led neal & Massy’s eastern Caribbean Group of
Companies.
he has been associated with various private sector
organisations, as a Past President of the Barbados
Chamber of Commerce & Industry, as well as a
director of the Caribbean association of Industry and
Commerce (CaIC). he continues to participate in
the community as a trustee of the Barbados youth
Business trust.
BOard OF dIreCtOrs
g. Anthony kingBarbadian Citizen
Sir Allan FieldsBarbadian Citizen
60 61
Paula RajkumarsinghTrinidad and Tobago Citizen
Brian young Jamaica Citizen
WILLIAM LUCIE-SMITH
Mr. Lucie-Smith is a Chartered Accountant
by profession and a former senior Partner of
PricewaterhouseCoopers ( trinidad ) where he headed
its Corporate Finance and recoveries practice. Mr.
Lucie-Smith has accumulated extensive experience
in mergers and acquisitions, taxation and valuations
and holds an MA degree from Oxford University in
Philosophy, Politics and economics. he currently
serves as a non-Executive Director on a number of
Boards including republic Bank and sagicor Financial
Corporation.
PAULA RAJkUMARSINGH
Paula rajkumarsingh is a Corporate Financial
Executive, with over 10 years of experience at a
senior management level, and the Group’s Chief
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.
BRIAN yOuNg
Mr. young is the Chairman of neal & Massy Group
(Jamaica) limited, Cool Petroleum limited, an
associate company of neal & Massy holdings limited
and Chairman of the audit Committee of neal &
Massy holdings limited.
a former senior Partner of PricewaterhouseCoopers
(Jamaica), Mr. young has held his position on the Board
of neal & Massy holdings limited for the past 14 years.
He is highly experienced in the areas of corporate
finance, mergers and acquisitions, insolvency and
management information systems, with 45 years of
management consultancy experience.
Mr. young is currently on the Boards of trinidad
Cement limited, Caribbean Cement Company
limited, rBtt Jamaica limited, Bermudez holdings
limited, trade Winds Jamaica limited and has served
on many Jamaican Government teams.
BOard OF dIreCtOrs
William Lucie-SmithTrinidad and Tobago Citizen
62 63
sChedule a
TO ALL SHAREHOLDERS
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,
trinidad on Friday 29th January 2010 at 10:00 a.m. for the following purposes:
1 to 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
note the final dividend.
2 to elect directors.
3 To appoint Auditors and authorise the Directors to fix their remuneration and expenses for the ensuing
year.
The texts of the proposed resolutions in relation to item 2 are annexed hereto as Schedule A.
By Order Of the Board
Michael A. Phillip
Company Secretary
15 december 2009
nOtes:
1 no 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.
nOtICe OF MeetInG
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.
Ordinary Resolution
Resolved:-
1 “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
hold office until the close of the third Annual Meeting of the Shareholders of the Company following
this election”
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
Director of the Company to hold office until the close of the next Annual Meeting of the Shareholders
of the Company following this election”
64
Republic of Trinidad and Tobago
The Companies Act, Ch. 81:01
[Section 144]
1 Name of Company neal & Massy hOldInGs lIMIted
Company No. N-20(C).
2 Particulars of Meeting
Eighty-Sixth Annual Meeting of Shareholders of the above named Company to be held at the Belmont
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.
date name and title signature
15th december 2009 Michael A. Phillip
Company Secretary
ManaGeMent PrOxy CIrCular