BASSETERRE, ST. KITTS (JULY 6TH 2004) – The St. Kitts-Nevis-Anguilla Trading and Development Company (TDC) Group of Companies is crediting the Labour Government’s tourism policy for contributing to the realisation of the largest-ever pre-tax profit in its 31-year-old history.
The locally-owned company is hailing the operation of the Royal St. Kitts Marriott Beach Resort, the Royal Beach Casino and the government’s initiative and support of increased airlift from North America and Europe and cruise ship policy for the “relatively strong tourist season for the hotel sector” and “the best cruiseship season ever.”
TDC said its 2004 profit was EC$8,618,943 compared to EC$7.951, 861. After making provisions for company tax and minority interests, net profit amounted to EC$6,353,092 in 2004 compared to EC$6,343,302 last year.
The report said there was improved performance in several areas including the Automotive Division, TDC Rentals Ltd, TDC Rentals (Nevis) Ltd, Finance and Insurance and Development.
TDC said its Automotive Division in St. Kitts experienced improved performance both in sales and profitability. “However, in Nevis, weak vehicle sales caused losses for that department. The Home and Building Depots had reduced profits due to discounting brought about by strong competitive pricing. The Business Equipment and Stationery business in St. Kitts did well, but Nevis suffered losses,” said the report.
The Shipping Agencies “performed well, even though in St. Kitts, due to the completion of the Royal St. Kitts Mariott Beach Resort, the volume of construction materials carried by its principals, CMA/CGM, decreased around mid-year.”
“The TDC Rentals Ltd and TDC Rentals (Nevis) Ltd both performed creditably. While the hire purchase business experience little growth, auto rentals increased substantially, particularly during the tourist season,” said the report.
The St. Kitts-Nevis Insurance Company Ltd (SNIC) had another good year, while the St. Kitts-Nevis Finance Company Ltd (FINCO) generated lower profits than last year due to increased operating expenses and provisions for loan losses.
TDC said its Hotel, Airline Services and Tours businesses had mixed results with the Ocean Terrace Inn (OTI) suffered losses due in part to reduced corporate business and lower room rates. “The significant increase in hotel rooms on the island forced rates downs,” said the Report.
TDC reported that the airline services business in Nevis had a very challenging year due to low volume of aircraft handled, while in St. Kitts, the increased airlift provided by US Airways from Philadelphia and North Carolina; Excel Airways from Gatwick, London; Sky Service from Canada and the strong growth of the other charter and private jet services, contributed to a very strong performance.
TDC Tours also had a good year due to the additional business generated from its association with the Royal St. Kitts Marriott Beach Resort and Royal Beach Casino.
“Promising growth in airlift out of the United States, the United Kingdom and Canada, our main tourist markets, and the opening of the Marriott Resort, resulted in a relatively strong tourist season for the hotel sector. In addition, the cruise sector experienced its best season ever,” said the TDC Report.
The Real Estate and Construction Company Limited, developers of Leeward Cove and Conaree Estates Limited made positive contributions to TDC’s success with five units sold at Leeward Cove and three lots at Conaree.
TDC said an interim dividend of four percent (20 cents per share) was paid and the Board recommended a final dividend of five percent (25 cents per share) making the total dividend of nine percent (45 cents per share) for the year amounting to EC$2,250,000.
The company has been profitable over the years with pre-tax profit of EC$3 million in 1993; EC$4.3 million in 1994; EC$4.7 million in 1995; EC$5.4 million in 1996; EC$6.5 million in 1997; EC$7.1 million in 1998; EC$8.1 million in 1999; EC$7.4 million in 2000; EC$6.5 million in 2001, EC$5.6 million in 2002, EC$7.9 million in 2003 and EC$8.6 million in 2004.
