Annual Report 2010 Our Mission
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ANNUAL REPORT 2010 Our Mission To be a World Class Group of Companies providing quality products and services to our customers and generating a superior rate of return to our shareholders through the optimisation of our human, technological and natural resources. Our Vision We are a World Class Group of Companies, committed to leadership in the regional business community and progressive partnering with all our stakeholders through: • A focus on customer satisfaction with quality products and services; • Superior financial performance and rate of return to our shareholders; • Growth through diversification and expansion in our core competency and through nurturing strategic alliances; • The continuous empowerment of our family of employees participating in a network of mutual support. www.tclgroup.com 1 Contents2010 Corporate Information 2 Notice of Annual Meeting 3 Consolidated Financial Summary 4 10-Year Financial Review 4 Share and Performance Highlights 6 Board of Directors 8 Information about our Board 9 Corporate Governance 11 Group Chairman’s Review 12 Group Executive Committee 16 Information about the Group Executive Committee 17 Group Ceo’s Report & Management Discussion 19 TCL Subsidiaries - Principal Officers 29 Management Proxy Circular 37 Directors’ Report 38 Independent Auditors’ Report 39 Consolidated Statement of Financial Position 40 Consolidated Statement of Income 41 Consolidated Statement of Comprehensive Income 42 Consolidated Statement of Changes In Equity 43 Consolidated Statement of Cash Flows 44 Notes to the Consolidated Financial Statements 45 Proxy Form 91 Corporate Information 2 Board of Directors of Trinidad Cement Limited Eastern Caribbean Central Securities Registry Limited Mr. Andy J. Bhajan (Chairman) Bird Rock, Basseterre Dr. Rollin Bertrand St. Kitts, W.I. Ms. Eutrice Carrington Mr. Bevon Francis Trust Company (Guyana) Limited Mr. Carlos Hee Houng 230 Camp & South Streets Mr. Jeffrey McFarlane Georgetown, Dr. Aleem Mohammed Guyana, South America Dr. Leonard Nurse Mr. Luis Miguel Cantú Pinto Stock Exchanges on which the Company is listed: Mr. Brian Young Barbados Stock Exchange Company Secretary 8th Avenue, Belleville, Mr. Alan Nobie St. Michael, Barbados, W.I. Group Chief Executive Officer Dr. Rollin Bertrand Jamaica Stock Exchange 40 Harbour Street Registered Office Kingston Trinidad Cement Limited Jamaica, W.I. Southern Main Road, Claxton Bay Trinidad & Tobago, W.I. Trinidad & Tobago Stock Exchange Phone: (868) 659-0787/88/0800 10th Floor, Nicholas Tower Fax: (868) 659-0818 63-65 Independence Square Website: www.tclgroup.com Port of Spain Trinidad & Tobago, W.I. Bankers (Local) Republic Bank Limited Eastern Caribbean Securities Exchange High Street, San Fernando Bird Rock, Basseterre Trinidad & Tobago, W.I. St. Kitts, W.I. Bankers (Foreign) Guyana Stock Exchange CITIBANK N.A. Hand in Hand Building 111 Wall Street 1 Avenue of the Republic New York, NY 10043 Georgetown U.S.A. Guyana, South America Auditors Attorneys-At-Law Ernst & Young The Law Offices of Dr. Claude Denbow S.C. 5/7 Sweet Briar Road 13-15 St. Vincent Street St. Clair Port of Spain Trinidad & Tobago, W.I. Trinidad & Tobago, W.I. Registrar & Transfer Agent M.G. Daly and Partners Trinidad and Tobago Central Depository Limited 115A Abercromby Street 10th Floor, Nicholas Tower Port of Spain 63-65 Independence Square Trinidad & Tobago, W.I. Port of Spain Girwar & Deonarine Sub-Registrars Harris Court, 17-19 Court Street Barbados Central Securities Depository Inc. San Fernando 8th Avenue, Belleville, Trinidad & Tobago, W.I. St. Michael, Barbados, W.I. Jamaica Central Securities Depository 40 Harbour Street Kingston, Jamaica, W.I. Notice of Annual Meeting 3 Notice is hereby given that the ANNUAL MEETING of TRINIDAD CEMENT LIMITED for the year ended December 31, 2010 will be held at the Training Room, TCL Compound, Southern Main Road, Claxton Bay, on July 15, 2011 at 4:30 p.m. for the transaction of the following business: ORDINARY BUSINESS 1. To receive and consider the Report of the Directors and the Audited Financial Statements for the financial year ended December 31, 2010, with the Report of the Auditors thereon. 2. To elect Directors. 3. To appoint Auditors and authorise the Directors to fix their remuneration for the ensuing year. 4. To transact any other business which may be properly brought before the meeting. Notes 1. Record Date The Directors have fixed June 20, 20 11 as the record date for shareholders entitled to receive notice of the Annual Meeting. Formal notice of the Meeting will be sent to shareholders on the Register of Members as at the close of business on that date. A list of such shareholders will be available for examination by shareholders at the registered office of The Trinidad & Tobago Central Depository, 10th Floor, Nicholas Tower, 63-65 Independence Square, Port of Spain, during usual business hours and at the Annual Meeting. 2. Proxies Members of the Company entitled to attend and vote at the Meeting are entitled to appoint one or more proxies to attend and vote instead of them. A proxy need not also be a member. Where a proxy is appointed by a corporate member, the form of proxy should be executed under seal or signed by some officer or attorney duly authorised. To be valid, the Proxy Form must be completed and deposited at the registered office of The Trinidad & Tobago Central Depository, 10th Floor, Nicholas Tower, 63-65 Independence Square, Port of Spain, not less than 48 hours before the time fixed for holding the Meeting. BY ORDER OF THE BOARD Alan Nobie SECRETARY June 10, 2011 Consolidated Financial Summary 4 Profit Attributable to Shareholders 06 -10 ($M) 200 150 100 TT$m 50 0 -50 2006 2007 2008 2009 2010 Total Assets 06 -10 ($M) 5000 4000 3000 TT$m 2000 1000 0 2006 2007 2008 2009 2010 Ten Year Consolidated Financial Summary UOM 2001 2002 2003 2004 2005 Group Third Party Revenue TT$ m 1,054.0 1,131.8 1,155.7 1,329.9 1,429.8 Operating Profit TT$ m 228.3 246.7 264.0 304.1 183.9 Group Profit before Taxation TT$ m 139.8 160.3 173.2 199.3 86.8 Group Profit attributable to Shareholders TT$ m 93.0 118.5 121.4 162.3 160.3 Foreign Exchange Earnings TT$ m 176.3 176.2 184.0 192.8 162.3 Earnings Per Share (EPS) TT$ 0.37 0.49 0.50 0.67 0.66 Ordinary Dividend per Share TT$ 0.14 0.18 0.18 0.20 0.15 Issued Share Capital – Ordinary TT$ m 466.2 466.2 466.2 466.2 466.2 Shareholders’ Equity TT$ m 699.0 765.3 804.4 939.4 1,031.8 Group Equity TT$ m 913.5 960.8 905.6 1,061.7 1,139.1 Total Assets TT$ m 2,356.0 2,320.9 2,239.4 2,394.5 2,948.2 Net Assets per Share TT$ 3.66 3.85 3.63 4.25 4.56 Return on Shareholders’ Equity % 13.2 16.2 15.5 18.6 15.5 Share Price (Dec 31) TT$ 3.65 5.70 6.00 8.05 10.00 No. of Shares Outstanding (Dec 31) ’000 249,765 249,765 249,765 249,765 249,765 Market Capitalisation (Dec 31) TT$ m 911.6 1,423.7 1,498.6 2,010.6 2,497.7 Total Long Term Debt TT$ m 982.4 922.1 832.3 848.0 1,181.6 Total Long Term Debt/Equity Ratio % 107.5 96.0 91.9 79.9 103.7 Consolidated Financial Summary 5 Earnings Per Share 06 -10 ($) 0.8 0.7 0.6 0.5 0.4 TT$ 0.3 0.2 0.1 0.0 -0.1 -0.2 2006 2007 2008 2009 2010 Group Third Party Revenue 06 -10 ($M) 2500 2000 1500 TT$m 1000 500 0 2006 2007 2008 2009 2010 Ten Year Consolidated Financial Summary UOM 2006 2007 2008 2009 2010 Group Third Party Revenue TT$ m 1,719.0 1,923.0 2,074.4 1,755.8 1,561.1 Operating Profit TT$ m 264.8 349.4 307.2 248.1 (1.2) Group Profit before Taxation TT$ m 160.5 245.7 195.9 84.0 (149.6) Group Profit attributable to Shareholders TT$ m 145.7 187.8 137.4 95.8 (48.5) Foreign Exchange Earnings TT$ m 231.8 292.3 362.4 327.7 239.3 Earnings Per Share (EPS) TT$ 0.60 0.77 0.56 0.39 (0.20) Ordinary Dividend per Share TT$ 0.06 0.07 - - - Issued Share Capital – Ordinary TT$ m 466.2 466.2 466.2 466.2 466.2 Shareholders’ Equity TT$ m 1,159.0 1,313.7 1,372.2 1,459.7 1,424.9 Group Equity TT$ m 1,267.5 1,442.3 1,504.3 1,579.3 1,517.3 Total Assets TT$ m 3,230.0 3,621.6 3,994.7 4,034.4 4,120.9 Net Assets per Share TT$ 5.07 5.77 6.02 6.32 6.07 Return on Shareholders’ Equity % 12.6 14.3 10.0 6.6 (3.4) Share Price (Dec 31) TT$ 7.01 7.35 4.00 3.85 2.80 No. of Shares Outstanding (Dec 31) ’000 249,765 249,765 249,765 249,765 249,765 Market Capitalisation (Dec 31) TT$ m 1,750.9 1,835.8 999.1 961.6 699.3 Total Long Term Debt TT$ m 1,253.9 1,395.6 1,444.8 1,359.0 1,242.9 Total Long Term Debt/Equity Ratio % 98.9 96.8 96.0 86.1 81.9 Note: Issued shares increased by 40,284,699 in 2000 to 249,765,136 at present.