Published: 12 Aug 2010

Story Created: Aug 14, 2010 at 1:01 AM ECT

Story Updated: Aug 16, 2010 at 2:42 AM ECT

THE ANSA McAL Group of Companies has made pre-tax profits of $402 million for the first six months of its financial year ended June 30.

Group chairman and chief executive officer A Norman Sabga said the company was “sitting quite pretty” after the group released its results at the Tatil building, Maraval Road, Port of Spain yesterday.

Sabga said their four major divisions were all profitable.

“Could we produce more? Yes of course, but the first quarter and second quarter sales are slightly higher than last year,” he said.

The construction sector, which is currently plagued with lack of payments and heavy debt, did not impact on the home improvement and manufacturing side of the business.

“Remember that 95 per cent of what we produce is geared toward the US market,” he said.

He said the manufacturing company was selling what it produced to markets in the Dominican Republic, Jamaica, Haiti and Central America.

Sabga credited better procurement procedures and management of the Group’s raw materials conversion cost for the three per cent increase in the gross profit margins.

Sabga said the insurance and financial services sector was impacted by overarching global market fluctuations, especially the investments in the euro.

The most profitable area of business remained the automotive sector, which earned over $1 billion for the first six months of the year—a slight increase from last year.

He said the board approved an interim dividend of $0.30 per share, the same as last year.

He said they expected to make the payments on November 12.

Story Created: Aug 11, 2010 at 2:00 AM ECT

Story Updated: Aug 11, 2010 at 2:31 AM ECT

THE Trinidad and Tobago Transparency Institute (TTTI) is calling on the relevant authorities to investigate the losses disclosed in Angostura’s 2008 financial statements, and why it was necessary for the State to bail out the CL Financial Group.

Angostura recently released its 2008 audited financial reports that showed profits for the first quarter of 2010 but a $1.3 billion loss in 2008 that resulted from problems with its parent company CL Financial and related subsidiaries.

The report stated: “The consolidated financial statements for the year ended December 31, 2008 have been regrettably, materially impacted by post year end events involving CL Financial Limited (CL Financial), which reflected a precarious financial position of our parent company and other CL Financial subsidiaries and which in turn, impaired the collectability of circa $1,185 million in receivables from the CL Financial Group.”

The report also said the company’s board could not declare dividends for 2008 because there was a net loss for the year of almost $1.3 billion as well as accumulated losses of $307 million and negative net shareholders’ equity of $121 million.

TTTI yesterday said the company’s audited report raised questions about the practice of corporate governance at Angostura and an investigation and findings should be made public.

The results of decisions made by Angostura and the CL Financial Group had a negative impact on their immediate stakeholders, on the public finances of Trinidad and Tobago, and the wider Caribbean, TTTI said.

“When decisions taken by a private entity have a heavy impact on the public purse, the processes surrounding those decisions should not remain private. We need to establish the lessons that can be learnt from that unfortunate situation, and take the necessary steps to ensure they are not repeated in the future,” the TTTI said.

Story Created: Aug 12, 2010 at 6:18 AM ECT

Story Updated: Aug 16, 2010 at 2:31 AM ECT

United States fast food chain Wendy’s- the home of the old-fashioned hamburger- is coming to Trinidad and Tobago.

Wendy’s/Arby’s International, a subsidiary of Wendy’s/Arby’s Group, Inc (NYSE:WEN) yesterday announced the signing of a long-term restaurant development agreement that will give the Wendy’s brand “significant presence” throughout the Eastern Caribbean.

The agreement calls for the development of 24 Wendy’s restaurants over the next ten years in Trinidad and Tobago and eight other markets.

The first of these restaurants is scheduled to open in 2011 in Trinidad, a statement from the company’s US offices said.

“This agreement will enable us to expand Wendy’s brand presence throughout the Caribbean basin,” said Wendy’s/Arby’s group president Roland Smith. “In the north, our franchise restaurants in Puerto Rico and The Bahamas generate some of the highest annual unit volumes in our international system; and, in the west, we have a growing presence in Central America. Now, we’re building on this regional momentum by entering the Eastern Caribbean with a highly capable franchise team.”

The new franchisee is led by Dane Darbasie, who has 17 years restaurant industry experience, including serving as chief executive officer and director of a publicly traded restaurant management company for 12 years.

“We’re honoured to have the opportunity to be associated with Wendy’s, one of the world’s leading restaurant brands. We believe the brand’s strong focus on premium quality, menu development and operational excellence provides us with a terrific platform for future growth in our target markets,” said Darbasie.

He was previously the chief executive at Prestige Holdings, the franchise holder for KFC in Trinidad.

In addition to Trinidad and Tobago, Wendy’s restaurants are planned in Antigua and Barbuda, Barbados, Grenada, Guyana, St Lucia, St Maarten, St Vincent and Suriname.

Wendy’s/Arby’s Group, Inc is the third largest quick-service restaurant company in the United States with more than 10,000 restaurants in the US and 24 other countries.

http://www.barbadosadvocate.com/newsitem.asp?more=business&NewsID=11794

Not a good deal, say travel agents

PORT-OF-SPAIN – The Travel Agents Association (TAA) believes the deal between Caribbean Airlines Ltd (CAL) and Air Jamaica Ltd is not a good one, despite a statement to the contrary by Finance Minister Winston Dookeran.  Dookeran made his remarks while addressing the Greater Tunapuna Chamber at a business forum Wednesday last week at the Centre of Excellence, Macoya.

Wayne Rodriguez, president of TAA, said the Air Jamaica routes sold to CAL were not profitable because “the routes are high-risk” due to swift competition on the routes Air Jamaica was losing money on.  Rodriguez added that competition would further increase with Jamaica’s open skies agreement, which would allow any carrier to fly to Jamaica. With the added competition, the routes would eventually become unprofitable, he said.  “I want the report and the findings of the committee to be made public.  The Air Jamaica routes are unprofitable,” Rodriguez said. (Trinidad Guardian)

The ANSA McAL Group is prepared to pump millions of dollars into the local economy this year, despite a slump in growth, said chairman and chief executive officer Norman A Sabga. He said the conglomerate had invested close to $1 billion in the local economy in the last few years and was intent on re-investing this year in plant and equipment. Sabga said at a time when the international and local economies were faced with significant economic and social challenges, it was critical for people and organisations to emerge as leaders and stimulate change and growth.

http://guardian.co.tt/business/business/2010/07/30/ansa-mcal-ready-pump-millions-jump-start-economy

AmCham head: Security costing businesses big

The cost of security is cutting into the pockets of the business community, and Government must address crime in the 2010/2011 budget, said Simon Aqui, president of the American Chamber of Industry and Commerce (AmCham).

He is calling for technology and manpower in the T&T Police Service to be looked at specifically aimed at improving crime levels. The T&T Chamber of Industry and Commerce (TTCIC), the Energy Chamber, T&T Manufacturers Association (TTMA) and AmCham partnered to conduct a survey among the business community to identify the direct and indirect costs of crime over the last ten years. Aqui said companies spend a lot of money on security equipment, security guards and security for employees to get home safely.

“We did want to demonstrate with real data that we had a four-fold increase, which is higher than the rate of inflation, of the spending of companies on associated costs for dealing with crime. “There are things like the direct cost with respect to security, perimeter fencing, cameras and those sort of things. We had indirect costs with respect to loss of productivity.” Aqui was speaking yesterday at a breakfast meeting hosted by AmCham at the Hyatt Regency Trinidad hotel, Dock Road, Port-of-Spain.

http://guardian.co.tt/business/business/2010/07/30/security-costing-businesses-big

Why are existing Mortgage rates not declinning?

The commercial banks continue to aggressively advertise mortgage rates as low as 6.75 per cent, but there has been no reduction in the rates on the existing mortgages on their books. When prevailing interest rates in the financial market were increasing, the local commercial banks and other providers of mortgages had no hesitation in increasing mortgage rates on existing mortgages. So why are the rates on existing mortgages not being reduced? The current mortgagees anxiously peer from behind bars wondering why newcomers are being treated with low interest rates, while their interest rates are frozen at high levels.

http://guardian.co.tt/commentary/feature-columnist/2010/08/01/why-are-existing-mortgage-rates-not-declining

Budget to focus on Clico, food and loans

By Curtis Rampersad Business Editor

An “early” national budget is expected to focus on issues like the near collapse of CL Financial and CLICO, as well as increasing food production and making it easier for entrepreneurs to get loans from banks.

Finance Minister Winston Dookeran said yesterday the Public Sector Investment Programme (PSIP) would need to focus on increasing food production, given the impact of rising food prices on inflation.

A restructuring of the State enterprises sector, including special purpose companies, is also being looked at.

http://www.trinidadexpress.com/business/99524504.html

Trinis beef up home security: TSTT turns cable protection into low-cost system

Trinidadians and Tobagonians are spending more on home security.

In under nine months, the Blink Vigilance security system introduced by telecoms provider Telecommunications Services of Trinidad and Tobago (TSTT) has attracted 5,000 customers.

Dennis Gordon, TSTT vice-president, Operational Risk and Security Service, said Vigilance has provided a high-tech home-protection system at a low cost, which consumers like.

Blink Vigilance was launched on November 1 last year in Port of Spain and has acquired homeowner clients across the country, including ones as far west as down the islands, as far east as Toco and Manzanilla, and in Central and south Trinidad as well as Tobago, Gordon said.

In an interview on Thursday at TSTT’s Edward Street, Port of Spain, offices, he said the technology and the idea for Vigilance was born out of the security problems the company faced from cable thieves.

“We were plagued by cable theft, and we had to come up with ways to solve that,” Gordon said.

http://www.trinidadexpress.com/business/99677499.html

RBTT Trust: Barbados real estate to pick up in 2010

Property sales transactions in Barbados are set to pick up in 2010, said Aliyah Jaggasar, trustee at RBTT Trust Ltd, which manages its Praetorian Property Fund. In unaudited financial statements for the six months ended March 31, 2010, Jaggassar reported that one “experienced company” is seeiing an 80 per cent increase in serious inquiries in December and January compared with the same time a year ago.

“This will augur well for the three properties held by the fund in Barbados,” she said in a published report. “The fund has continued to upgrade a selected number of commercial and residential properties in an attempt to preserve values, while it continues to receive significant rental income from its high end properties in the market. “The Bay property in Barbados underwent some renovations that were completed at the end of last year. There have been several showings in the recent weeks and we anticipate it being fully tenanted before the end of this financial year,” Jaggassar stated.

http://guardian.co.tt/business/business/2010/07/02/rbtt-trust-barbados-real-estate-pick-2010

Five-year plan to turn around Clico

CEO of CL Financial Marlon Holder has presented a five-year plan to its shareholders to turn around the financially strapped company. The plan, which is now in the hands of the People’s Partnership Government, was the subject of a three-hour long shareholders meeting at Courtyard Hotel Marriott, Port-of-Spain yesterday. The shareholders met to discuss the board of directors’ plan and current status of the beleaguered company. In January 30 2009, CL Financial appealed to the Central Bank for a financial bailout.

http://guardian.co.tt/news/politics/2010/07/04/five-year-plan-turn-around-clico

CL Financial money troubles grows

By Camini Marajh Investigative Desk

The price for the state-funded rescue of the troubled CL Financial Group has just been ratcheted up to the seven-figure mark by separate lawsuits filed by two state-owned heavyweights against Clico Investment Bank (CIB) which has been put into liquidation by the Central Bank.

The National Gas Company and the National Insurance Board have both sued CIB and its Central Bank appointed manager Carl Hiralal and state-owned First Citizens Bank for the recovery of investments totalling some $1.8 billion.

http://www.trinidadexpress.com/news/97749089.html

T&T maintains stable credit rating

By Aretha Welch awelch@trinidadexpress.com

Regional credit rating agency CariCRIS has reaffirmed Trinidad and Tobago’s financially stable AAA credit rating.

The AAA rating is the highest a government can receive and acts as an assurance to lenders that the country has been able to meet its debt obligations.

CariCRIS reaffirmed the ratings of the government with a CariAAA grade for the country’s foreign currency rating and CariAAA for its local currency rating.

A statement yesterday from CariCRIS said, “The ratings on the Republic of Trinidad and Tobago continue to reflect its strong, resilient and well diversified economic structure, a key rating strength.

“Another is the very strong external liquidity, evidenced by a healthy net foreign reserves position and low financing requirements.”

The agency also described the country’s level of debt as low.

http://www.trinidadexpress.com/business/97703014.html

A massive headache

By Camini Marajh Investigative Desk

In the 17 months since its bailout, the financially-stricken insurance giant, CLICO, has sucked up more than $5 billion in taxpayers money, is facing a slew of policy-holder lawsuits stemming from its inability to pay claims as they fall due and according to insiders, is weighed down with policy-holders liabilities of about $12 billion.

Solvency issues inside the country’s largest insurance company, which piled up losses in excess of $6 billion for the financial year ended 2008, is causing a massive headache not just for Government and regulatory officials but also for ordinary policy-holders who are unable to cash out on policies that have matured.

http://www.trinidadexpress.com/news/97749084.html

BHL profits on the rise

BANKS HOLDINGS LIMITED (BHL) has been able to achieve what most companies are still trying to do in the current economic downturn – contain cost and increase profit.

According to BHL’s unaudited half-year consolidated statement of income, revenue took a $3 million hit but “aggressive” cost controls helped increase its profits by $700 000 to reach $5.93 million for the review period.

In their comments, chief executive officer Richard Cozier and chairman Sir Allan Fields said: “Our commitment to aggressively control costs has resulted in growth in the profit from domestic operations of roughly $700 000.

“Additionally, our overseas operations have also recorded improvements, this is in spite of continuing challenges in Belize, where although pricing on citrus concentrates are improved, adverse weather and other factors have limited the improvement in their operations.”

In addition, the two officials told shareholders: “Domestically, we are far advanced in the plant upgrades at Barbados Dairy Industries Limited and have signed off on and paid an initial deposit on equipment required for a completely new brewery on company lands at Newton, Christ Church.”

http://www.nationnews.com/news/business/CORPORATE—BHL-financial-05-03-copy-for-web

Small hotels need national marketing policy

In an interview with BARBADOS BUSINESS AUTHORITY last week, Loveridge said: “The problem with small hotels is that they are not very well marketed. We have no national policy to represent our small hotels. We have a group called Intimate Hotels which represents about 50 of our small properties, but that means that 80 are not being collectively marketed in some shape or form.”

Loveridge, who is the owner of Peach and Quiet Hotel on the South Coast, said, “We really need to invest more marketing dollars in promoting the small properties. Small hotels have [some] of the highest guest repeat of all levels of hotels. So the guests tend to be more loyal, as they are likely to receive a much more positive service. They come back year after year.”

http://www.nationnews.com/news/business/small-hotels-need-copy-for-web

Paymaster had sued Grace Kennedy Remittance Services Limited (“GKRS”)

In the absence of a clear written agreement, Paymaster was forced to assert that there was an implied term in its contract with Lowe. The judge in the case noted that “there is an astonishing lack of clarity in the contractual arrangements between Paymaster and Paul Lowe regarding ownership in the copyright to the Paymaster Multi-Payment Software”.

http://www.jamaicaobserver.com/business/Lessons-from-Paymaster-v-Grace_7580143

US-billion dollar lottery in 5 years

We anticipate that in the next five years we will see a (US) billion-dollar jackpot where different countries come together,” George told the Business Observer yesterday following his presentation at the American Chamber of Commerce of Jamaica (AMCHAM) Breakfast forum held at the Knutsford Court Hotel in Kingston. “When the world of lottery operators begin to consolidate their operations, playing one game, China is playing it, Europe is playing it, the Caribbean and South America is playing it, you will be generating astronomical jackpots,” .

http://www.jamaicaobserver.com/business/US-billion-dollar-lottery-in-5-years_7580445

Bank of Nova Scotia Jamaica  has acquired Scotia DBG Merchant Bank Ltd

The Bank of Nova Scotia Jamaica Ltd has advised that it has acquired Scotia DBG Merchant Bank Ltd (SDBGMB) with the intention to eventually consolidate SDBGMB into Scotiabank. This reorganization is aimed at improving efficiencies across Scotiabank Group through the removal of duplicate products and services. An independent valuation of SDBGMB was conducted by Deloitte Touche Tohmatsu and this valuation was used as a basis to determine the sale price of JMD 879mm which was settled in cash.

Mansoor: Caribbean banks in good shape

Caribbean banks are performing well, although the rest of the Caribbean economy is not faring well, said Michael Mansoor, executive chairman, FirstCaribbean International Bank. “Our industry is not a sick man and the banks are doing well. Generally speaking, the banks in the regions are in good shape. “If you look at the financial statements of all the banking groups in the region, both foreign-owned banks and indigenous banks, you would find that they have done well,” he said.

http://guardian.co.tt/business/business/2010/05/01/mansoor-caribbean-banks-good-shape

Firm launches HR software

Caribbean companies can now have more control over the recruitment process within their organisations with the launch of digital candidate manager, an e-recruitment manager launched by the Trinidad-based Digital Business Ltd. The application enables companies to overcome serious challenges, such as fierce competition, rising cost, staff shortages and high turnover. “With digital candidate manager, companies can quickly connect human resource managers to the tools the organisation needs to attract and retain suitable employees,” says Devanand Ramsingh, business development manager, Digital Business. Digital Business is an international management and technology consulting services company committed to helping companies create knowledge and deliver innovation.

http://guardian.co.tt/business/business/2010/05/03/firm-launches-hr-software

Governor: CL Financial crisis showed need for harsher laws

If there is anything that the CL Financial crisis underscored, it was the critical importance for the legislation and regulation to keep in-step with the evolution of the operations of the financial sector, said Ewart Williams, Governor of the Central Bank. “For years, we have been taking a soft-touch approach to regulation, aligned with the philosophy of the market mechanism. In the Caribbean and elsewhere, this approach has led to the excesses, which caused the crisis.http://guardian.co.tt/business/business/2010/05/03/governor-cl-financial-crisis-showed-need-harsher-laws

Businessuite online traffic grows over 400% in April 2010

Businessuiteonline (www.businessuitemagazine.wordpress.com) is having one of the best months in its short history on the web. Over 439 hits have been recorded on the site over the period February to April 2010. While this may not seem like much to many people, for the publishers of the site this is a serious indication that what they are doing is gaining some traction. The site produced and published by The Blackslate Media Group; saw hits to the site move from 65 in February to 275 in April and recording 81 in March. April was the big month so far with a major jump in hits.

The website which is promoted almost exclusively using social website as Face book and email blats by the publishers is yet to take on the challenges of going the traditional media route to promote the site. Targeting exclusively small and medium business entrepreneurs and owners around the Caribbean the website focuses on content that this highly targeted niche market will find useful and insightful.

The company moved the active site from BlogSpot to Word press in order to allow for more orderly development and the introduction of more features, not easily done or accommodated on BlogSpot. The company over the next couple of month’s plans to introduce audio feeds from its radio programme, Businessuite Today and Video feed from its cable programme The Businessuite Report.

For more information on The Blackslate Media Group please go to www.blackslateholdings.blogspot.com.

BUSINESSUITE TODAY picks up SPATIAL INNOVATION sponsorship

The Blackslate Media Group (BMG) produced and presented radio programme, BUSINESSUITE TODAY (www.blackslateradio.blogspot.com) which airs Mondays and Wednesdays at a new time of 5:00Pm – 7:00pm on BESS100FM and simulcast on www.bessfm.com has secured the sponsorship of SPATIAL INNOVATION.

The two hour business radio programme which seeks to “Translating complex subjects into easy-to-understand stories removing the jargon and insiders’ terminology so these topics are understood by anyone who can read a newspaper or watch television — not just investment professionals” targets SME business owners and managers seeking to improve their business financially and personal net worth.

The Programme format is a mixture of news, commentary, analysis, interviews and pre-produced features that present business and business issues in an entertaining, informative and often time’s humorous fashion with a heavy emphasis on business and business personalities and issues.

Take away for the listening audience – I can improve my business financially and my personal net worth from the information I receive on this programme.

Spatial Innovision Limited founded in 1998, headed by Silburn Clarke is the Caribbean’s leading GIS and GPS solutions centre. Spatial has been an advocate for the widespread implementation of Geographic Information Systems (GIS) throughout the Caribbean region for government agencies, non-government organizations and private businesses

“We break down land data and create Geographical Information…”

SPATIAL and its partners have the capability to assist an organization in designing and implementing project-scale, enterprise-wide and national scale geographic information systems.

We expect to pick up another major sponsor very soon, said the company.

28^th Annual JEF Business & Workplace Convention & Expo

The Jamaica Employers Federation will be hosting its 28^th Annual Business and Workplace Convention & Expo under the theme “Crisis to Opportunity: Endless Possibilities” from May    6-9, 2010 at the Sunset Jamaica Grande Resort, Spa & Conference Centre in Ocho Rios.

The main keynote speaker for the event is Professor Mavis Thompson, President of the National Bar Association of the United States. She will address the over-300 expected participants at the Opening Spectacular on the morning of Friday, May 7. She will also give the keynote address at the Luncheon for CEOs the following day which is dubbed ‘CEO Day’.

The Convention will feature daily sessions from Thursday through to Saturday conducted by international, regional and local presenters including Acres Stowe, President, Antigua & Barbuda Employers’ Federation, John Suzyo Banda, Research & Marketing Manager, Zambia Federation of Employers (ZFE) and Shirley Davis, Phd, Director of Diversity Initiatives, Society of Human Resource Management (SHRM).

On the list of local presenters are Omar Azan, President, Jamaica Manufacturers’ Association, Jean Lowrie-Chin, Founder & Managing Director, PROCommunications Ltd., Cordel Green, Executive Director, Broadcasting Commission of Jamaica and Stephen Spence, President, Young Entrepreneurs’ Association (YEA).

The Convention’s Expo will see some 30 companies showcasing their goods and services. It will be officially opened with a ceremony on Thursday evening in the presence of The Hon. Pearnel Charles, Minister of Labour and Luesette Howell of the International Labour Organization (ILO) Subregional Office for the Caribbean.

The JEF Convention, the largest event of its kind in the English speaking Caribbean, is part of the Jamaica Employers’ Federation’s fulfillment of its mission to “lead the development of an enabling business environment, through the effective representation and provision of value-added services”. Participants are drawn from small, medium and large business enterprises, Government and quasi government agencies.  The Convention is an important vehicle for exposing Jamaican and Caribbean businesses to world-class, cutting-edge best practices and innovation.

The event has attracted over 60 corporate sponsors including platinum level sponsors Guardian Life Insurance and Sagicor Life Jamaica Limited.

Food prices push inflation to 5.1%
Curtis Rampersad Business Editor
Saturday, April 24th 2010

Private investors inching towards creation of Guyana’s second international airport

Browne: Positive signs in T&T economy