2006 - Eastern Caribbean Securities Exchange

Chairman’s ReviewCHAIRMANAndy J. BhajanThe Group’s Strategic PurposeThe TCL Group’s Vision and Mission Statements,which are reproduced on page 2, commit the Groupto providing our customers with quality products andservices, our shareholders with a superior return ontheir investment, and our employees with continuousempowerment in a network of mutual support. Theydescribe an environment characterised by growthand diversification, making optimal use of human,technological and natural resources. Your Boardcontinues to pursue the fulfilment of this strategicpurpose which is reflected in the TCL Group’s deeprootedcommitment to regional development. TheGroup sees itself as a premier enduring West Indianinstitution, harnessing the talents of Caribbean peopleand building excellence into the fabric of our society.The Group must also be a catalyst for infrastructuraldevelopment in the region.This vision provides an important context in whichto consider our financial performance for 2006.Although there have been challenges, there wasmeasurable advance over the period in meeting theGroup’s strategic objectives. A detailed analysis ofperformance is provided in the Group CEO’s Report andManagement Discussion. However, specific highlightsare herein provided.Financial Performance SummaryThe Group’s revenue increased by $289.2m or 20%compared with 2005, through higher volumes asa result of buoyant market conditions and priceincreases, which were primarily implemented in orderto offset higher energy costs and the higher costof imported clinker. Contributing to this growth,revenues from the pre mixed concrete and packagingbusinesses increased by $83.3m, reflecting growthrates of 41% and 64%, respectively. In the case ofthe Readymix Group, sales volumes increased by 4%and price adjustments were implemented to offset thehigher cost of aggregates, some of which had to beimported. For the packaging companies, third partysales volumes of paper sacks increased by 110% and20