30th April, 2018
BASSETERRE, St. Kitts (KYSS FM)- S.L. Horsford Group of Companies has reported a decline of nearly EC$10 million in group sales in 2017 and an EC$2.1 million decrease in Gross Profit in 2017 compared to 2016.
W. Anthony Kelsick, the company’s chairman, in his report to shareholders and their recently held Annual general Meeting (AGM), said the overall result was less than the record year of 2016 which registered declines in Income before and after taxation, basic earnings per share, turnover or group sales and also a decline in all segments of its operations.
S. L. Horsford also reported declines in car sales, durable goods and consumable goods sectors and in the joint venture company, St. Kitts Masonry Products.
Mr. Kelsick reported that Income before taxation of EC$13.3 million was a decline of EC$2.8 million or 17.46% versus 2015.
“Similarly, Income after taxation of EC$8 million was less than 2016 by EC$$2 million or 20.07%. Basic earnings per share for 2017 were $0.13 versus $0.17 for 2016. Total Comprehensive Income was $12 million versus EC$10 million for 2016,” the annual report continued.
S.L. Horsford & Co. Ltd also reported an EC$9.7 million decline in Turnover or group sales.
According to the report, “The Turnover or group sales for 2017 were EC$148.9 million in 2017 compared to EC$158.7 million for 2016, a decline of EC$9.7 million or 6.16 percent. This decline was experienced in all segments of our operations; however, this was largely due to a decline in the automotive sector of 20%. The decline in the automotive sector was due to increasing competition from imported used vehicles as well as a saturation of vehicles in the market.”
The company further reported a decline of 4% in the durable goods sector, with a smaller decline of 1% in the consumable goods sector.
Gross profit declined by EC$2.1 million to EC$37.6 million. Other Income increased by EC$459,577 to EC$10 million resulting in a net decline in Total Income of EC$1.7 million to EC$47.7 million. Expenses decreased by EC$139,422, 00 to EC$36 million.
The company said Profits before Results of Associated Companies decreased by EC$1.5 million to EC$11.7 million, while the Share of Results of Associated Companies was EC$1.6 million, a decrease of EC$1.2 million, down 43.17 percent.
“This decline was due to decreased demand for products produced by our joint venture company, St. Kitts Masonry Products Ltd, a trend which started in 2016.The performance of this company was particularly disappointing in 2017,” said the report.
Income Tax Expense was EC$5.2 million which is an effective rate of 43.4% versus the effective rate of 37.75% in 2016.
The company disclosed that the group’s lands and buildings were revalued on 20 September 2016 and the revalued amounts recognised at the beginning of the 2017 fiscal period, creating a net surplus after related taxes of EC$4 million, resulting in a Total Comprehensive Income of EC$12 million for 2017.
The company added that they expect a similar outlook at the end of 2017.