Guyana’s positive growth drove Neal & Massy’s performance in 2011 – Chairman

Strong economic growth in Guyana in 2011 was a key factor behind Neal and Massy’s positive performance in the country despite an overall mixed performance recorded by the Group.

Chairman, Arthur Lok Jack, said in the Group’s 2011 Annual Report that despite Guyana recording a budget deficit of US$19.6M, strong growth in real GDP created an environment for favorable operations.

“For the sixth consecutive year, Guyana was the growth leader of CARICOM. A strong third quarter performance of 5.9 percent in real GDP pushed its overall growth…the boost came mainly from increased production of rice, gold and bauxite. Once again, our operations in Guyana reflected this positive growth,” he said.

In 2011 the Neal and Massy Group experienced mixed performance levels. While the majority of the Group’s subsidiaries performed well and demonstrated the anticipated growth for 2011, impairment arising from the decision to sell the Group’s interests in Almond Resorts, disappointing results from United Insurance, investment in a new strategic plan for the Group and other adjustments to Head Office expenses erased the gains the subsidiaries made and reduced the Group’s overall Profit Attributable to Shareholders.

Jack said while the core companies of the Neal and Massy Group performed well, demonstrating overall growth, a few under-performing companies produced losses, which together with a net charge for Discontinued Operations of $305M resulted in a decline in Profit Attributable to Shareholders from $301M to $98M. Consequently, the Earnings Per Share reduced from $3.13 in 2010 to $1.02 in 2011.