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A n n u a l R e p o r t 2 0 1 3
Annual Report 2013
Our Strategic Intent – The Way Forward
The TCL Group remains steadfast in its vision to remain
the premier regional manufacturer and marketer of
cement. We are committed to being an efficient, dynamic,
international, market and service-oriented organisation.
We continue to strive to expand in a strategic manner
into non-traditional markets in the region, particularly in
Spanish and French speaking territories. Such expansion
and growth will continue to be bolstered and propelled
by the structured development of the core competency
requirement for existing and new businesses. The Group
will continue harnessing technology as an enabler for
organisational transformation.
The major strategic intent for the Group will encompass
the following:
• Asset optimisation at all Group plants;
• Reduction of the unit cost of production across the
subsidiaries for increased competitiveness;
• Intensified trading in new markets;
• Aggressive pursuit of high FOB markets and greater
value-added products – particularly Oilwell cement; and
• Continuous deleveraging of the Group’s Balance Sheet.
Challenges
Critical to the attainment of the Group’s targets
going forward will be steady plant performance at all
subsidiaries and at ACCL in particular, which experienced
tremendous challenges for much of 2013. The tight cash
situation continued in 2013 as a significant portion of the
cash generated from the Group’s improved EBITDA was
conserved to meet debt-servicing obligations. The Group’s
plants continued to be adversely affected in their ability
to promptly execute planned maintenance and upgrades,
especially at ACCL. Apart from the impact on ACCL’s plant
reliability, its ability to acquire fuel was compromised at
times and this severely affected its obligations in satisfying
long standing debts to key suppliers of goods and services.
Outlook
Notwithstanding the challenges faced in 2013, all
subsidiaries are projected for profitable operations going
forward, and the focus will be to significantly build upon
the results of 2013 into the future.
Certain critical repairs at the Barbados plant have already
been completed. Local demand is in line with our
expectation and exports are being made to the buoyant
Guyana market as well as other key markets. Growth
is being forecasted for the Jamaican economy in 2014,
and this is expected to redound to the benefit of the
construction sector. The plant in Jamaica will fulfil the
remainder of its 100k tonne Venezuela supply contract
and negotiations have commenced for a new contract
to supply 240k tonnes over 12 months. The Trinidad and
Tobago market remained buoyant in the first three months
of 2014 and this buoyancy is expected to continue for all
of 2014, thus significantly enhancing the Group’s cement
and concrete businesses.
We face the future with increased optimism as we
continue our efforts to restore the Group’s Pride of Place,
as the premier manufacturing Pan Caribbean company in
the Region.
Legal Matter
As previously referenced, on June 14, 2013 TCL was
served with a Notice of Proposal of Shareholders, which
proposed the nomination of 5 persons for the election of
Directors at the Annual Meeting scheduled for July 12,
2013 and inclusion in the Management Proxy Circular. The
matter was initiated by a minority group of eleven (11) TCL
shareholders, holding in the aggregate, 5.68% of TCL’s
shareholding. The Notice was issued pursuant to sections
116-118 of the Companies Act of Trinidad and Tobago.
TCL issued a Notice of Refusal of Proposal by Shareholders,
under sections 119 and 121 of the Companies Act. On
the date scheduled for the Annual Meeting – Friday, July
12, 2013 the proposing shareholders applied to the High
Court for an injunction to stop the said meeting. While
this matter is sub judice, TCL can inform all shareholders
that the High Court granted the injunction, and ordered
that the company be restrained from holding its Annual
Meeting whether on July 12, 2013 or otherwise until the
hearing and determination of the matter or until further
order. TCL appealed the decision of the High Court. TCL’s
appeal was dismissed, and the Court of Appeal ordered
that the injunction granted continue until the hearing
and determination of the claim, or until further order.
Accordingly, the matter was remitted to the High Court for
the trial and determination of the substantive issues raised
in the case. TCL has since filed a Counter-claim and joined
Republic Bank Limited as a party to the matter. The trial
Group Chairman’s Review (continued)
We face the future with increased optimism as we continue
our efforts to restore the Group’s Pride of Place, as the premier
manufacturing Pan Caribbean company in the Region.
