Goddard bounces back with $24.7m profit
GODDARD ENTERPRISES LIMITED returned to profitability in 2012 after being in a loss position at the end of the 2011 financial year largely due to a number of one-off events.
According to consolidated financial highlights for the year ended September 30, 2012, overall net income for the year was $33.9 million compared to a net loss of $5.3 million in the previous year.
Chairman Joseph Goddard and managing director Martin Pritchard noted that after deducting non-controlling interests, this increase saw the portion attributable to equity holders increasing from a $10.5 million loss to a $24.7 million profit.
Earnings per share was at 41.2 cents compared to a 17.6-cent loss in 2011.
The Barbados-headquartered conglomerate’s revenues increased by 5.3 per cent over the prior year to reach $999.1 million.
The directors noted that an increase was reported across all sectors of the group and it achieved a gross profit margin of 35.2 per cent compared to 33.5 per cent in the prior year.
They attributed this mainly to improved inventory management and labour efficiencies.
Net profit from operations before other losses/gains amounted to $52.8 million, which represents an increase of $29.5 per cent on the prior year.
The group’s selling, marketing and administrative expenses were 30.3 per cent of revenue compared to 29.5 per cent in the prior year “due mainly to certain acquisitions made during the latter half of the previous year and during the current year”.
“Other losses and gains, net, improved from a net loss in the prior year of $27.8 million to a loss of $1.6 million.
“The figures last year were negatively impacted by three large one-off expenses, namely: goodwill impairment, provision for losses on our hotel investments, and a write-down of a short-term investment.
“An improved result from our insurance associate and the fact that we have fully written down our investment in hotels caused an increase in our share of income of associates of 68.1 per cent,” Goddard and Pritchard said.
They added that the company’s debt to equity ratio remained healthy at 37:63 and its cash flow remained adequate.
The directors also noted that a final dividend of 11 cents in respect of this financial year had been declared, bringing the total dividend for the year to 18 cents per share. (NB)