27
Andy J. Bhajan - Group Chairman
Group revenue increased by $55 million or 3.5% due to better pricing as
domestic cement sales volumes declined by 4%. Export sales fell more steeply
at 24%, due in part to limited product availability, as a consequence of the
challenges noted above.
The 2012 results for the Group were negatively impacted by a charge of $49.1
million for debt restructuring expenses and a non-cash charge of $88.6 million
for impairment of Kiln 4 in Jamaica and related spares. The return to operation
of Kiln 4 is dependent on significant market improvement. In accordance with
our accounting standards, we have taken an impairment charge as a matter of
prudence.
Finance costs increased by $56.7 million as a result of $33.7 million in foreign
exchange losses in 2012 from our Jamaica subsidiaries. This was caused by
the depreciation of the Jamaica dollar and higher interest costs due to higher
principal balances arising from the capitalisation of interest, in accordance
with the debt restructuring agreement. Taxation charge is recorded at $5.0
million for 2012, whilst 2011 benefited from a net credit of $72.8 million, largely
due to the write-back of $51.7 million of deferred tax assets.
The Group has successfully serviced its debt instalments under the new
agreement to date: $51 million in December 2012 and $71 million in March
2013. The upcoming instalment in June 2013 will likewise be honoured.
OUR STRATEGIC INTENT
The TCL Group remains unwavering in its vision to remain the premier regional
manufacturer and marketer of cement whilst expanding in a calculated and
controlled manner into non-traditional markets, particularly in Spanish and
French speaking territories. Such expansion and growth will continue to be
bolsteredandpropelledby the structureddevelopment of the core competency
requirement for existing and new businesses. The Group will continue
harnessing technology as an enabler for organisational transformation.
The Year in Review
