However GEL is in a good position to continue to weather the storm, operating in diversified businesses, well spread geographically throughout the Caribbean and Latin America. The sheer scale of the crisis however has affected our import distribution companies mainly in food and liquor, hardware, lumber and cement sales as well as motor vehicle sales.
This past year has been a challenge and has forced us to focus on what really matters, by evaluating which products, customers, and businesses create or do not enhance value. We have had to ensure that customer service and satisfaction are a priority whilst continually reviewing our cost base. In order to enhance operational performance it has been necessary to reduce unnecessary complexity within our businesses and extract better value via lower wastage and higher yields. We have also had to focus relentlessly on key drivers and risks across the group and “key performance indicators” have been set and are continuously monitored by business units on an ongoing basis. Our Catering Division has really taken these philosophies on board and though divisional sales for 2009 have fallen by 2% below prior year, divisional operating profits have increased, a truly creditable performance under very difficult trading conditions!
In addition, advantage must be taken of opportunities for us to acquire those companies that are not so efficient and have become a victim of this crisis. By re-engineering and re-tuning our businesses, we will be able to survive the economic storm and we will be in a much better position to take advantage of the upturn when it occurs, hopefully no later than this time next year. The economies of the US and many European and Far Eastern countries are already showing signs of recovery.
On a positive note McBride Caribbean restarted production of aerosols on its state-of-the-art filling line in May 2009; and during August 2009 we acquired Grace Kennedy’s 51% shareholding in Versair Inflite Services and their 30% ownership in Fidelity Motors in Jamaica. We also are in the process of opening a new supermarket in St Lucia at the Bay Walk Shopping Mall in Rodney Bay which is scheduled to commence operations in February 2010.
I know that the coming financial year will be a challenging one for all of us, but I am confident that with the processes and controls that we have put in place and the capable human resources that we have available within the group, we will survive this crisis. I am relying on all of you to rise to the challenge in these trying times and to go the extra mile as a member of the Goddard Group.
On behalf of the Management Committee of Goddard Enterprises Limited, I would like to wish every member of the Goddard team and their families, a blessed Christmas and a happy and healthy new year. God bless you all.
