A major financial hit by associated company Sagicor General Insurance Company has been identified as one of the drags on Goddard Enterprises Limited’s (GEL) financial performance during the 2017 financial year.
This was revealed in the conglomerate’s recently-released audited consolidated financials for the year ended September 30, which showed a near 100 per cent drop in the share of income from associated companies.
GEL holds a stake in Sagicor General Insurance company and in the Board Review signed by Chairman Charles Herbert and Managing Director Anthony Ali, the local conglomorate noted: “Our share of income from associates fell by 99.6 per cent due to the equity pick up of our share of the loss from Sagicor General Insurance Inc.”
The GEL senior officials acknowledged a “poor fourth quarter performance, which was solely attributable to the impact of Hurricane Maria in Dominica on the results of our insurance associate”.
They said the hurricane hit caused a nine cents “negative impact on our earnings per share”.
Despite this, Barbados’ largest conglomerate with companies across the region, Central and North America, experienced no decline in net profit which stood at $56.79 million, compared to $56.46 million in 2016.
“The group saw growth in most of its major sectors, even though revenues declined by 2.5 per cent due to challenges in the manufacturing and services division and the sale of two food businesses in 2016 as well as our rum businesses during the current year,” the report said.
The Goddard senior officials revealed that shareholder earnings increased from $37.8 million in 2016 to $41 million last year, representing an 8.4 per cent jump.
Bullish about the company’s future performance, the chairman and chief executive officer touted the group’s financial strength.
“Goddard Enterprises Limited continues to fall well within standards for all benchmark ratios. We are well poised for growth with our current cash flow levels and leverage capacity.
“The outlook for the group is positive, despite uncertainty in some markets in which we operate. We are focused on exciting initiatives for 2018 which accord well with our strategic plan and we are optimistic of continued growth for our shareholders,” they assured shareholders.