Published 25 July 2017
Buckie Got It, St. Kitts and Nevis News
TDC reports EC$12.9 million in pre-tax profit, mixed performance in several departments
BASSETERRE, ST. KITTS, JULY 25TH 2017 – Although making a pre-tax profit of EC$12.9 million for the year 2016/2017, the TDC Group of companies is reporting mixed performances in several departments. The company made a profit of EC$5.4 million in 2016.
In its annual report sent to shareholders ahead of its Annual General Meeting on July 31st 2017, TDC reports good performance in the Automobile Divisions (St. Kitts and Nevis), City Drug Store(Nevis) Limited and TDC Business Centre (St. Kitts); FINCO, TDC Airline Services Ltd and TDC Services (Nevis) Ltd.
Decline in profits is reported in the Home and Building Depots (St. Kitts and Nevis), TDC Rentals Limited and TDC Rentals (Nevis) Limited, TDC Insurance Company Limited, formerly SNIC, TDC Tours Ltd and St. Kitts Masonry Products.
The Drinks Depot registered disappointing performance, while losses were recorded in the Shipping Departments in St. Kitts and Nevis.
TDC reported that the importation of building materials, a gauge of activity in the construction sector declined.
“The construction sector was negatively impacted by events in the Citizenship By Investment programme and the resulting down turn in demand for properties to serve it. Public Sector capital investment declined in 2016. Correspondingly, the profit for the Home and Buildings in Nevis and St. Kitts declined,” the TDC Directors said.
The TDC directors said St. Kitts Masonry Products Ltd reported “a significant decline in profit due to a reduction in the demand for blocks and ready mix concrete as the construction industry contracted during the year.”
The directors also reported that car rental for TDC Rentals Ltd and TDC Rentals (Nevis) Ltd “declined as a number of long-term car rental contracts with several construction related businesses in St. Kitts expired. In addition fierce competition from numerous small independent agencies utilizing used Japanese vehicles has cut into market share.”
“The number of new hire purchase contracts declined for both companies as a result of a management decision taken in 2015 to conduct new hire purchase financing with TDC Nevis Ltd and the TDC Parent Company,” the report said.
“During the year, strong competitive pricing, lower interest rates on investments and increases in the provisions for Claims Reserves resulted in a decline in profit by 18.4 percent in TDC Insurance Company Ltd, formerly SNIC,” said the directors.
The profit for TDC Tours Ltd “declined due to reductions in hotel guests transported on behalf of Four Seasons. The cruise visitors who took tours offered by the company also declined.”
TDC reported as disappointing the performance of its Drinks Depot which was affected by the cessation of the distribution of the Coca Cola line of products. Since the year ended, sales have resumed.
The company reported losses in both Shipping Departments in Nevis and St. Kitts. The operations on Nevis continue to be affected by very low volumes.
TDC said in the year under review, more vehicles were sold than at any similar period in the company’s history and there were significant increases in the revenues from the garage operations.
The combined Profit before Tax for City Drug Store (Nevis) Ltd and TDC Business Centre (St. Kitts) increased by 80 percent over the 2015/2016 financial year.
TDC’s Financial Services Company Ltd (formerly FINCO) registered a Profit Before Tax increase of 1.58 percent; TDC Airline Services increased its profit for the year as a result of a 20 percent increase in handling flights while TDC Airline Services (Nevis) Ltd profit was mainly due to an increase in handling revenue.
“LIAT resumed flights to Nevis in January 2016; however the service was discontinued in November 2016. The increased flights from WINAIR positively impacted the handling revenue of the company,” said the report from the directors.
