Neal & Massy Guyana Limited, the holding company for the Guyana group of companies which form part of the Trinidad based Caribbean multinational, Neal and Massy Holdings Limited, in spite of the challenges posed by the current political situation in Guyana and its related problems performed creditably during the year.
In a report to the parent company Neal and Massy Holdings Limited at its annual general meeting in Port-of-Spain on the 20th December, 2002 dealing with the annual accounts for the year ended September 30, 2002, the Chief Executive Officer (CEO) B. Dulal Whiteway told shareholders that the prevailing investment climate in Guyana was severely hampered by increasing criminal activities and heightened political tensions. Despite these obstacles, the group remained committed to enhancing its business operations in Guyana.
The CEO said that Associated Industries Limited (Ainlim) had continued to reorganise its core business around spending patterns in the country that reflected an economy with very little growth and new investment, a depressed rice industry, and increasing uncertainty arising from social and political developments. The business is now organised into an Equipment Dealership Unit which provides industrial and agricultural equipment and related services, a Transportation unit which markets and supports new vehicles, batteries and tyres, and a Distribution Unit that markets household products, biscuits and snacks. This Unit also includes branches in Essequibo and Berbice which market and distribute all the company’s products and Docol’s gases in those counties.
Revenues from the agricultural and industrial equipment and vehicle and related businesses had declined. Significant growth, however, was achieved in the expansion of the down trade distribution with the addition of the Bermudez brands, and the continued strict management of costs and working capital. He said the plan for the new year would see Ainlim adding to its distribution capability as no immediate recovery was expected in the other areas of the business.
Referring to another Guyana subsidiary, CCS Guyana Limited, the CEO said that the Office Products and Communications Division engages in the rental and sale of office equipment and consumables, as well as radio and paging services. The I.T. Division provides hardware, software and networking services, as a complete I.T. solution for customers.
The Company had had a reasonable year and obtained some major contracts for I.T. hardware and networking. However, the Communica-tions Division suffered as a result of a serious decline in the paging business as a consequence of the growth of cellular phones.
During the year, he said, particular emphasis was placed on working capital management and cost reduction. CCS had strengthened its association with Illuminat, with whom it co-tendered for a number of contracts. The rapid changes in technology in this business, he said, provide both a challenge and opportunity for the company, and its success this year will depend significantly on the availability of internationally funded projects.
Reporting on Demerara Oxygen Company Limited (Docol), Guyana’s leading provider of Liquefied Petroleum Gases (LPG), industrial and medical gases which also retails welding equipment and safety products, Dulal Whiteway said that during the year the company focused primarily on improving customer service and operational efficiency, and together with some market growth in LPG, was able to surpass its projections.
During the coming year executives will concentrate on adopting a strong Health, Safety and Environmental program together with a proposed changeover to the new ISO 9001/2000 quality system.
The CEO said Geddes Grant Guyana Limited is engaged in the marketing and distribution of food and pharmaceutical products to the retail sector, and the provision of agricultural machinery, fertilisers and agro chemicals to the agricultural sector. It recorded marginal improvement for the year under review, constrained by weaknesses in customer spending during the second half of the year.
The agricultural sector continued to be affected by adverse conditions which impacted negatively on yields and acreages cultivated.
Recent trends, he said, point to another difficult year ahead, with slightly improved earnings likely to come from modest revenue growth, coupled with cost improvement measures.
The group’s other Guyanese subsidiary NM Services Limited (NMSL) is engaged in the provision of customs and shipping services, equipment financing and the operation of a money transfer business under the brand name “Moneygram.” This company recorded a very good performance as it achieved most of its financial and non-financial targets. Its objective is to strengthen its position in the Guyana market, he said.
The CEO said the group’s financial condition remained strong. The profit for the year was TT $164.5 million (about US $25 million) and dividends amounted to TT $54.1 million.