Annual Reports

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Annual Report 2000

Chairman’s Review

The Company’s performance for the year 2000 was outstanding and the results for the period were the best ever recorded in its 41 year history. Record performances were achieved in production, sales, revenue and profits. The premixed concrete industry experienced significant growth during the year and our ability to successfully meet the challenge of expanded customer requirements redounded to our benefit. Steps previously taken to improve our operations coupled with the dedication and commitment of our executives and employees were significant contributors to our success.

Financial Highlights

Revenue for the year 2000 amounted to $123.87 million, an increase of 73% over the previous year. Net profit after taxes increased by 144$ to $8.93 million compared to $3.67 million in 1999, reflecting improved operating efficiencies as well.

The Company’s Balance Sheet was further strengthened in the course of the year. Total Net Assets have grown to $27.63 million at December 31, 2000 from $20.27 million at December 31, 1999. Our debt to equity ratio improved to 0.75 at December 2000 from 1.27 at year end 1999 and the current ration climbed to 1.19 from 0.92 at December 31, 1999.

Earnings and Dividends

The Company’s earnings per share also improved considerably, from 31 cents in 1999 to 74 cents in 2000. Accordingly, the Board of Directors recommends a final dividend of eleven (11) cents per share on the existing share capital of 12,000,000 shares. Pending shareholders’ approval at the Annual General Meeting, this amount together with the interim dividend of thirteen (13) cents per share paid in September 2000 will result in a total dividend of twenty-four (24) cents per share for the year (1999: 10 cents).

Operating Highlights

Led by the airport and ALNG projects, the local premixed concrete industry experiencfed phenomenal growth last year. Industry sales for the year 2000 are estimated at 369, 000 m3 compared to 232,000 m3 in 1999, an increase of 59%. By securing the supply contracts for the main concrete requirements for both the airport and ALNG projects, our Company necame the major beneficiary of the increase in market demand. Our concrete sales for the year 2000 totaled 240,483 m3mcompared to 137,048 m3 in 1999. This represents an increase of 75% over the previous year. The Company’s share of the premixed conrete market in 2000 is estimated at 65% compared to 59% in 1999. Our operations in Tobago completed its full first year of supply to that market with its share approaching 50%.

Overall improvement in efficiency of our operations is manifested in the performance of our quarries. Pitrun extraction during the year 2000 totaled 454,000 m3 compared to 298,000 m3 in the previous year, and increase of 52%. The Bermudez Quarry accounted for one quarter of the pitrun extracted. At Melajo, aggregate production for 2000 amounted to 335,000 m3 compared to a prior year total of 233,000 m3. Notwithstanding the quantity and specific quality demands during the year, particularly for the Piarco and ALNG projects, our Melajo plant supplied all but two percent of the aggregate requirements of the company during the period under review.

Human Resources

The Management Team, left to right:
Miss Joel Ann Cook, Mr. Hilary Lakhiram, Mr. Lucien Delpesh and Mr. Joel Edwards

The positions which became vacant when a number of senior personnel resigned in November 1999, were all suitably filled during 2000. An Operations Manager joined the establishment during the course of the year. The Board is confident that the team in place can repeat the performance demonstrated in 2000.

In August 2000, the Company and the OWTU settled a new three year collective bargaining agreement for the daily and monthly paid workers are Readymix (West Indies) Limited, without having to resort to third party intervention.

The Future

During 2001, the local demand for concrete is expected to decline in the absence of any project of the magnitude of the Piarco Airport. It is also anticipated that new competitors will enter the premixed concrete business. The year will therefore be more challenging, but revenues expected from continuing contracts will provide a cushion. In addition to defending its market share and revenue base, the Company will focus on further improving efficiencies in all areas of its operations. In pursuing this objective, a significant amount of capital expenditure is proposed for the procurement of mobile equipment for mining and concrete delivery. Capital investment will also be incurred in acquiring equipment to improve our environmental management capability.

The year 2001 will see the expansion of Readymix (West Indies) Limited’s operations into new areas as it proceeds to enlarge its market.

On behalf of the Board of Directors, I wish to thank all our customers for their continuing support. I would also like to thank our suppliers and contractors who faithfully responded to our needs on a timely basis. I congratulate the Executives and Employees on an exceptional year and thank them for their contributions.

Walton F. James
Chairman