Download File - TCL Group

The Company improved its safety performance throughout
the workplace, which coincided with workers displaying a
heightened sense of safety awareness and ownership of the
“Safety First” motto. In particular, there was a 77% decline
in the number of vehicular accidents compared with the prior
year. This improvement is directly attributed to a number of
initiatives started in 2009, including programs in Defensive
Driving and Vehicle Inspections, and a Management decision
controlling the use of Company vehicles outside of employees’
work duties.
For the financial year 2010, the Group recorded an overall
net loss of $7.7M; this represented a significant shortfall
compared with the profit of $9.7M of the prior year.
During the year, RML remained the overall market leader,
with 17 active participants in the pre-mix concrete market.
Of these, 75% of the operators were involved in a more
diversified offering, including the supply of concrete blocks,
general construction, and asphalt paving services. As a result
of the supply/demand relationship for concrete, average price
fell during the year by 25%, in comparison with the prior
year. In the Trinidad & Tobago market, RML sold 106,278m3
in 2010, representing a 28% decline from 147,818m3 of the
prior year.
RML considered plans for diversifying outside of its core
business, and entered into discussions which would involve
joint venture arrangements and mutual sales agreements with
reputable complementary-type business in the industry. The
Company also increased the sale of quarry products, including
pitrun and aggregates, to third-party purchasers, with overall
revenue of $20.9M, an increase of 100% over the prior year.
Other internal cost-cutting and efficiency-improvement
initiatives were implemented, such as reduction in the areas
of Wages, External Plant Hire, and Repairs and Maintenance,
which yielded positive results in terms of cost; however, they
could not reverse the overall loss which was realized.
At the RML quarry, a comprehensive study was initiated to
determine the location and extent of mineable pitrun reserves,
and to develop a new mining and rehabilitation plan for the
quarry lands. This project, due for completion in 2011, will
assist in streamlining pitrun production for purposes such as
for supply to the building of highways and agricultural access
roads, in addition to the production of high quality aggregates.
The Company is also reviewing the feasibility of establishing
a modern wash plant at the quarry to replace the existing
aggregates wash plant, which is over 25 years old, and which
is characterized by issues such as frequent breakdowns, high
maintenance cost, and lack of spares by suppliers.
During the year, the Company continued the process of bilateral
negotiations with the Union for a new Collective
Agreement for employees. This matter started in 2009,
and remained outstanding at year-end 2010, as there was a
substantial difference in the positions between the respective
parties. The matter was referred to the Ministry of Labour for
conciliation, but has since been sent to the Industrial Court.
The Company also pursued its thrust to diversify its operations
into other territories, on the basis of a confirmed project.
Particular focus was placed on Haiti, where parent Company
TCL was involved in discussions for entering the market. A
firm opportunity has not yet been identified, but the company
will continue to explore potential projects in the New Year.
For the year in review, PPCI sold 13,636m3 of concrete, a
19% fall below the budgeted sales volume of 16,800m3
and 1.9% below that of 2009.The depressed sales reflect the
challenges during the year, as prospective home-builders
remained cautious in the face of the prevailing economic
difficulties and private investors further delayed construction
of their approved projects until a clearer picture of economic
recovery could be envisaged.
During the year there was a decrease in the Group’s cash and
cash equivalents of $19.5M. Challenges were experienced
in the collection of receivables owed from contractors who
worked on government-related projects. The Company
used its lobby with business groups such as the Trinidad
and Tobago Manufacturers Association and the Contractors
Association to assist in eliciting payments on behalf of its
clients. However, payments trickled, and at year-end almost
60% of the Company’s receivables represented amounts due
from government-related projects.
Despite the challenging market and economic conditions of
2010, RML maintained a strong financial position, and met
and exceeded all of its financial covenants. In the midst of
the challenges, the Company has positioned itself to improve
its position as market leader, and to take advantage of
opportunities which are anticipated in the various sectors in
the economy.
For the year ended, the stock price traded firm, with no change,
at $31.35 per share for the entire year. The Board has agreed
that no dividend will be paid to shareholders for the financial
year 2010.
Ms. Eutrice Carrington
Chairman
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